The Research On Problems Of "Camp To Increase" Based On Construction Companies

Premier Li Keqiang published an article named "a number of issues on deepeningeconomic reform "on "Seeking Truth" magazine. It pointed out that we should continueto promote tax reform in the future and "camp changed to increase "should go" fivesteps ". Premier Li Keqiang said that the current focus is to expand the tax reform."camp changed to increase " is not just a simple tax system conversion and moreimportant, it helps to eliminate double taxation, reduces the burden on enterprises,promotes industrial restructuring, service development and business model innovation.Construction industry is a pillar industry of the national economy."Camp changedto increase" reform of Construction industry allows buildings for VAT to input taxdeduction, on the one hand it can improve our VAT tax, deepen our requirements of taxreform. On the other hand,"Camp changed to increase" of construction industry foritself can help to eliminate double taxation of VAT and business tax currently exist duecause, reduce the corporate tax burden and enhance the market competitiveness ofconstruction enterprises; on our society and economy words, the reform involves awide range of impact, scale and intensity of large tax cuts, tax cuts actually far greaterthan the theoretical estimates, residents and businesses can adjust the proportion ofnational income distribution, better release vitality of social enterprises enhance itscompetitiveness, is conducive to China as soon as possible out of the economicdownturn, help speed up the adjustment of economic structure and the transformationof economic development mode.In2011, the Ministry of Finance and the State Administration of Taxation issuedCai Shui [2011] No.110, made it clearly that the construction industry using the VATrate of11%, put on " Camp changed to increase "of construction industry the agenda.Due to the complex environment of the construction itself, the reform involves a wideimpact on society and deductible buildings in other industries is relatively large, large-scale tax cuts, the intensity of the impact of China’s fiscal revenue and taxation systemallows the pilot delayed not included in the2013reform of the range, but " campchanged to increase " of construction industry is imperative, also imminent, which isboth the requires of the development of the industry itself, and also the needs ofnational economic development.Firstly, the status analysis the construction industry development situation quo in 2012, highlighting the status of the pillars of the construction industry in China’snational economy, review the VAT reform and " change the business growth," thething to remember, discussed our analysis in the macroeconomic adjustment under thestructure and the transformation of the pattern of economic development, deepeningfiscal reform in our country and in some sectors of the environment, in the backgroundof " camp changed to increase "," camp changed to increase " of construction industryis imminent, and demonstrates its necessity and feasibility. In order to study theconstruction business tax with VAT, will impact what our country and which kind ofproblem, this article analysis the impact of " Camp changed to increase " of constructionindustry to the reform of the social and economic aspects, tax reform aspects and theconstruction industry and construction management financial aspects of the businessitself. In order to have an intuitive understanding of the financial aspects of theconstruction industry, paper selects20listed construction companies in2012as samples,the use of its financial data, the results of the data. Through the construction industry,"Camp changed to increase," the prior hypothesis, the turnover tax changes in thesample, the sample through the operating profit, net income, ROE, EPS and otherfinancial targets " Camp changed to increase " after the change can be seen, sample ’sactual tax burden has been significantly reduced, the net profit has been significantlyimproved; and construction industry, after " camp changed to increase " the impact ofcorporate tax management and operation and other management aspects are discussed.Finally, this paper construct problems and difficulties that implementation of the "Camp changed to increase " reform may encounter, considering the real problems of "Camp changed to increase " of construction industry delayed,targets from the nationalpolicy level and architectural aspects of their own put forward the correspondingcountermeasures and suggestions to implement the construction industry restructuringbusiness tax reform requires both policy support at the government level, but alsorequires the development of their own transformation.