The Research On Tax Shifting And Repetitive Taxing Of Real-Estate Development Industry

This paper intend to make research on Tax Burden Shifting and duplicated taxation on VAT tax system as the background of the real estate development industry starts to replace the business tax by VAT on May 1,2016.To make the analysis of tax burden shifting. Firstly, made statistical analysis to get out the tax level in 2010 to 2014, compared with other industries.Calculation shows that this industry tax burden rate is 15.92%before the five years, which also is the greatest level of analyzed 14 industries. High tax rate reflect the need of tax burden shifting on this industry.Followed by case research, analyzed the QS real-estate development project’s net profit, tax burden rate and net cash flow changes between new and old tax system. This project belongs to A real estate development enterprises in Chengdu, CREC, will begin to construct in 2017.Calculation found that, on VAT system, the tax burden rate is 5.5% over than sales tax system. This is also concluded that more pressing tax planning should be considered.From study, also found that "developing around upstream and downstream industry, to get tax-avoidance" the idea is not feasible any more. But in some cases, excess tax burden can be shifted to purchasers.Made secretive statistical analysis of real-estate development industry tax burden rate for above five years. Indicates that:this industry’s Tax Burden rate is stable. This proved "tax auditor focus on this industry all the time ". So, real estate development enterprises need to consider the tax risk of failure tax planning later.Around "going global", the space of tax shift is very big between different countries when company "going out". Build a reasonable investment framework should firstly think about when real-estate development enterprises implement tax shifting.This article also made quantitative research on the influence of real-estate development project’s tax burden rate, net cash flow, net profit when land value increment tax and VAT existing at the same time. Found double taxing phenomenon when land value increment tax and VAT existing at the same time. In order to achieve the elimination of repetitive taxing, optimization industry tax system, reduce the tax burden rate, land value increment tax should be abolished. And impose other taxes to buyer who purchase non-essential property, which also can regulate social wealth, promote social harmonious development.