The Empirical Research For Influence Factors Of Actual Tax Burden From Real Estate Companies

The tax burden is closely related to the country’s economic growth and enterprisedevelopment. As being the main provider of China’s tax revenue, the enterprise’s actualtax burden has also become the most focused and sensitive issue. In recent years, the realestate industry has been rapidly developed and grown as being one of the three pillarindustries in China and also played an important role in the real estate industry. Thus,whether the real estate industry can continuously developing in a healthy and stablepattern has become an important topic for people’s living and national strategy which notonly effect the development of national economy but also effect the development of urbanconstruction. Thus tax policy makers and researchers also began to be doubly concernedabout the level of the actual tax burden of the real estate industry.As housing prices continued to rise in recent years, the real estate market is extremelyeasy to induce foam and it is the time for government to take appropriate economicactions for the real estate market in order to control and regulate them based on therequirement that the market mechanism has been fully played. One of the most direct andeffective regulation measures is the strong implementation of the tax policy. However,most of the tax regulation policies of our government are focusing only on the ease ofoperation and pay little attention to the effectiveness. After government regulation, thedevelopment trend of the real estate companies, the tax burden of its industry, as well asthe factors that affect the real estate business tax burden, it’s all according to the basictheory of tax economics, using a reasonable method to assess the tax burden of the realestate industry, so as to identify the problems in the real estate tax system, makerecommendations to ensure that the real estate industry can be developed in a stable andsustainable way. Scholar also did some research on actual tax burden for China’s realestate industry, but most of the research is mainly based on a theoretical analysis andthe angle of study as well as conclusion are also different. Therefore, the author believesthat researching real estate corporate tax burden has important theoretical value andprofound practical significance given such background.The relevant literature were reviewed and researched and the research background,purpose, and research significance are discussed on that basis. This article alsoexpounded the definition of macro burden and macro tax burden, the actual tax burdenand nominal burden respectively. Then the author introduced the indication that used in this article for evaluating tax burden level. Next, this article discussed the factors that caninfluence the income tax burden of the real estate industry, analyzed the negativeimpacts on listed real estate companies bring by these factors quantitatively and thusmade basic assumptions for the real-case research of chapter four. This article alsoverified the impact level of these factors on income tax burden of listed real estatecompanies according to the empirical models built from the384samples of the listedreal estate companies from2006to2011as well as using descriptive statistics andmultiple regression method,.The empirical results show a negative correlation between company size, profitability,and long-term debt ratio, the first shareholder stake and the corporate income tax burden,in which the company size, profitability, the influence of long-term debt ratio is moresignificant. From panel data analysis, the empirical results of the size of the companysomehow verified the hypothesis of political rights that the stronger corporateprofitability the company has, the lower corporate income tax it will get. The current ratio,debt ratio, capital intensity is positively correlated with the actual income tax burden ofthe enterprise, and impact more significantly on the actual income tax burden. Capitalintensity and the corporate income tax was also a significantly positive correlation couple,which reflects that investment tax incentives policy did not play a significant role whenlisted real estate companies were speeding up the update of fixed assets and investment.In addition, we also found that the higher the asset-liability ratio of China’s real estatelisted companies had, the higher its corporate income tax burden will get. However,interest baffle effect comes mainly from long-term liabilities rather than short-term debtfinancing. In the meantime, the annual effect of empirical results also validated thedownward trend of enterprise’s income tax burden compare with the one in2006.Some countermeasures and suggestions have been offered in the last chapteraccording to empirical results of the negative influence of tax income burden from listedreal estate companies.