G Construction Company Tax Planning Under The "Business Tax Replaced With Vat" Reform

The reform of business tax replaced with VAT is an inevitable trend for guaranteeing economic development and national tax revenue. Turnover tax is levied domestically with the coexistence of business tax and VAT. Such a tax system has a great many drawbacks, like quite higher tax rate, repeated taxation and unbalanced tax burden across the industry, so efforts to deepen the tax reform are desired. In 2012, Shanghai took the lead in implementing the reform of business tax replaced with VAT in pilot areas concerning the transportation industry and partial modern service industries. With the continued deepening of the reform, business tax replaced with VAT has gradually developed across the country, and more and more industries have been incorporated into the pilot scope. As a pillar industry of China, the construction industry is bound to enforce this reform of business tax replaced with VAT listed in the "12th Five-Year Plan", in an attempt to directly facilitate the development of the country’s consumption-type VAT.By delving into the G construction company and in combination with the characteristics of the construction industry, the paper analyzes the causes of increased tax burden on construction companies under the reform of business tax replaced with VAT and objectively identifies their difficulties. And the paper also details adverse effects and possible tax-involved risks brought by the tax reform on the construction industry, are reduced to the maximum extent through tax planning, financial management system and tax-related scientific management. Moreover, reasonable suggestions on the possible tax-related risks and tax planning are innovatively proposed under the tax reform in the paper, thereby allowing construction companies secure through the tax reform.The paper is divided into five chapters:Chapter Ⅰ elaborates the basic content including background and significance of the subject, literature review, research framework, ideas, innovations and defects. Chapter Ⅱ expounds theories related to the paper covering optimal taxation, fair taxation, tax planning, incentives and risks, providing a sufficient theoretical basis for the study of the paper. Chapter Ⅲ analyzes the necessity and feasibility of the reform of business tax replaced with VAT on the construction industry and details construction companies can draw on the experience of companies which have undergone the reform of business tax replaced with VAT and conduct effective tax planning and avoid relative risks. Chapter IV details the analysis of the effect of the tax reform on the burden of taxation and taxation management concerning the construction industry by delving into the case of G construction company, And for the design of G construction company tax planning scheme. Chapter V is designed for the above scheme, the enterprises puts forward feasible suggestions for the implementation of the tax planning. The finally section summarizes this article and draws a conclusion.