Research On The Tax Burden Of Listed Construction Companies For The Business Tax Reform Into VAT

At present, China’s VAT sales tax coexist. It was artificially separated from the system of VAT deduction chain, resulting in tax imbalance. On Janu.1,2012, the State Administration of Taxation issued110th "business tax with VAT pilot program" in the Shanghai Municipal Transport and part of modern service industry to carry out business tax with VAT pilot. Although construction has not been included into the scope of the pilot, but the pilot program identified that it is applicable for11%of construction companies to join the VAT reform stage which it the groundwork for construction companies to join the VAT pilot.In this article, research methodology combines theoretical and empirical analysis. It based on the construction companies in Shanghai and Shenzhen listed company’s2012financial report, based on analysis of the impact of change levy VAT on building enterprise tax burden, measured the change VAT building corporate tax burden indicators. The pre-tax and tax reform tax reform indicators of construction enterprises comparative analysis. The empirical results show that the tax reform of construction enterprises would lighten the tax burden including turnover tax, income tax and overall tax. After tax relief, corporate balance available more funds to update machinery and equipment, optimize the asset structure, improve profitability and operational efficiency, enhance their market competitiveness, help construction enterprises to develop international business and enhance competitiveness in international markets. After analyzing some issue of tax reform process in the construction business may encounter, the writer finally give some available suggestions.