Study On Real Estate Company Planning On Land Appreciation Tax

In recent years, the real estate market is undergoing profound and rapid change.After a series of government administrative means failing to achieve effectivecontrols, the executive-led government is trying to change the mode to market-basedapproach. In2014the government work report did not mention the real estateregulation. Instead it focused on the deployment of affordable housing construction,for the first time over the past decade. On the contrary, the government lays a strongeremphasis on tax in the real estate market. In2013CCTV twice reported onwell-known listed real estate companies over missed payment of land appreciation tax(LAT). Although the authorities came forward to explain each of the incidents forthem to fade from the center of public attention, one can imagine, that the publicsuspicion and the pressure from the authorities will soon result in the tightening ofLAT collection policy, strengthening of law enforcement power, and full audition ofLAT. All these once again became the Sword of Damocles hanging over thedeveloper’s head. A new round of power balancing has been launched. It is a pressingreality for every sizeable real estate company to confront that the company combineswith the company’s strategic management, plans LAT settlement, minimizes the tax.This article includes theories from domestic and overseas tax planning. The firstchapter is on research background, theoretical and practical significance, such as thecontents of the steps and makes a brief statement of the method, summaries thecharacteristics and innovations in the article. The second chapter is a literature review.It presents research results at home and abroad, with the latest tax planning elaboratetheory as the theoretical foundation discussed herein. The third chapter analyses theLAT policy and its objective uncertainty. It points out there is a range of choices onclearing point, objects and methods, and form burden within legal frame and reasonably delays tax liquidation. s the basis for the method for planning LAT.Chapter four divides real estate development process into six sectors. It combineswith elements of strategic management at each stage, and summaries the fifteenplanning methods, which adapts which project planning method.Among them, the purchase method of garages, outside the red line cost planningmethod are original. We strive to be parsed from each method definition, policyanalysis, applicable conditions, complemented by case illustrates, systematically andcomprehensively summaries the main stages of development planning methods of theLAT. The fifth chapter is a case study on the companies involved. We present realdata and information, employ integrated use of the above method, make detailcalculations of the differences before and after tax LAT planning, exercise acomprehensive evaluation and empirical analysis of net income from the companypoint of view, and draw the conclusion that after a comprehensive plan drawn revenuemaximization presented together with the risks and precautions that may exist. Duringthe whole process we stick as closely as possible to reality. Chapter six of the articledraws conclusions, pointing out the flaws in the article and places to be improved.Also here we state expectations and prospects for the future research work.I believe that, although the situation to carry out the liquidate on of foreign LATis not common, they are also facing the country wide move of phasing out businesstax in favour of value added tax, because of the particularity of national land policyand the real estate market, the government liberalized under the administrative controlof the trend, land VAT tax regulation as an effective means is to remain a long time.Based on both the government, especially local government, which rely on land andreal estate sales income, real estate market’s healthy and stable development ofdemand in the interests of all parties, the already scarce tax incentives cannot beeasily canceled. The liquidation policy uncertainty will persist, and tax planning willcontinue to remain an act for the future. Following the characteristics and laws of thevarious stages of project development, strategic perspective and to maintain flexibilityin planning an effective method with which to explore the existence of intrinsicallylinked to the integrated use and management of the entire process, thus effectively reducing the tax burden, to find a balance of revenue and profit growth point to createthe greatest value for our shareholders, increasing revenue for the state, and ultimatelyto maximize economic and social benefits.