A Study On The Financial Impact Of "Camp" On Real Estate Enterprises

Due to the incomplete historical reasons of China’s tax reform in the 90’s of last century, nearly 20 years, China has been the implementation of VAT and business tax levied parallel double taxation policy, China’s Taxation system featured with artificial fracture and the VAT deduction chain has been criticized. On November 16,2011, the "VAT replacing business tax scheme" marked the prelude of tax system reform, covering a variety of industries and gradually implemented. The original plan should be completed in the" Twelfth Five Year Plan ", due to the economic growth situation slowed, fiscal revenue pressure and other reasons, the pace of the reform of the tax system has slowed. As of December 31,2015, the construction industry, real estate, financial services and life services industry has not yet been "business tax levied through VAT" tax reform.With the advancement of China’s urbanization process, in recent years, the real estate industry in China’s national economy is more and more important. As a pillar industry of the national economy, the development of the real estate industry plays a very important role in the development of the upstream and downstream enterprises and local government revenue. The implementation of VAT replacing business tax influences on the real estate industry development. The impact to local fiscal revenue situation is significant and far-reaching. At the same time, how to ensure the smooth transition of "VAT replacing business tax scheme" is also a great concern for China’s government and real estate development enterprises.The implementation of "VAT replacing business tax scheme" is the trend in real estate, the impact of it on China’s real estate enterprises, responses and measures will be the main content of this paper. This article is mainly based on the theory and practical method, introducing a case study, analysis of the impact brought by tax reform on accounting, cost and profit and tax burden for real estate business. On the basis of this, the feasible measures are put forward for real estate enterprises to prepare in advance, smoothly run in the transition period of "VAT replacing business tax scheme".