Research On The Influence Of The Turnover Tax System Reform On Construction Enterprise’s Finance And Accounting

Based on the pilot proposals for the Change from Business tax to value-added tax, this paper studied the effects to construction enterprise’s finance and accounting under the background of the turnover tax system reform. First, this paper introduced the content of the turnover tax, and elaborated the history of business tax and value-added tax systemly, and summarized the main content of turnover tax system reform pilot proposals and its effect on enterprise. At the same time, combined with the caracteristic of construction enterprises, it explained the history and present status of business tax of building industry in detail. This paper analyzed the main problems of business tax of construction business in a well-targeted manner. The introduction of the turnover tax system and the analysis of the construction business provided a solid theory foundation to the research.Based on the analysis of different accounting methods before and after the turnover tax system reform of construction enterprise, this paper found the impact to construction enterprise’s accounting elements from the turnover tax system reform. For example, the impact to the assets and liabilities, the impact to income, cost and profit of business result. At the same time, this paper analyzed the financial indexes of debt paying ability and profitability which could be affected. This paper using the knowledge related to tax, calculated the equilibrium point of tax burden before and after the turnover tax system reform, and analyzed tax burden of construction enterprise, making the enterprise can combine their own situation and find the suitable asset structure.This paper also studied the influencing factor of fixed assets investment before and after the turnover tax system reform, analyzed the influence of fixed assets investment by loan interest and depreciation, and made cost comparative analysis between Purchase of fixed assets and equipment leasing. So construction enterprises can join its situation, take appropriate measures, and deploy its fixed assets reasonably to deal with the probable impact from the turnover tax system reform.In this paper, the integrated analysis to accounting, tax burden, investment and other financial related elements are helpful for construction enterprises to take advantage of the policy of the turnover tax system reform to adjust the financial strategy, improve the management ability and competitiveness. Finally, this paper selected a small and medium-sized construction company, and converted the financial statement to analog data, to made a comparative study to the data before and after the tax system reform, and found actual effect data which can provide effective reference for the Construction Enterprise to reply to the tax system reform in the future. As a result of the particularity of construction industry, the reform of tax system has not been implemented in this field. it is very much likely that tax system reform of the construction industry will be formally implemented under the premise of upstream and downstream industry chain’s reform has been completed and matured enough.So some necessary assumptions were introduced in this research. Different construction companies has some difference in their assets structure, but this study still can provide positive guidance to them, and make the influence of the turnover tax system reform on construction enterprise conducive to their development.