Research On Taxation Burden Of The Real Estate Industry

Nowadays, the real estate has become the basis and carrier of all economic activities. As the lead of the tertiary industry, the real estateindustry, which has gathered a huge amount of disposable financial resources for local governments, has helped the investment growth in some region. According to MOF China, revenues directly driven from the real estate industry were around 2.6 trillion yuan, which was out of about 30%share of local revenue and reached a record high, in 2013, indicating that real estate tax revenue has become the main source of local revenue. To tell the truth, the government has shown signs of its reliance on the real estateindustry. In 2013, the total revenue of the real estate "five" tax reached 1.2215 trillion yuan,which increased by 21% compared to 2012,and rose rapidly in the past 10 years, whichwas 24 times amount of that in 2001, representing an annual growth by 40.4%. Yearly growth of tax for real estate developers is a kind of burden. In that, tax revenue was featured by the function of transfer, the property developers are inclined to raise the house prices, putting increased tax pass on to consumers consequently. Such a high transfer tax contributes to higher house prices directly.Tax effectundoubtedly magnifies steep liters curve of house prices, so that the increase of real estate tax bring of huge negative effects increasingly, which not only make the house prices soared and lead to economic structure twisted development, but also keep the debt risk of local government debt remains high,bringing the higher hidden danger to the debt risk increase. Therefore, it’s inevitable for us to study the rationality of real estate taxes.This paper consists of four parts: in the first part, I expound the theory of tax burden and this method of measuring real estate taxes. This section is based primarily on the basic theory of taxation and accurately locate the property tax burden, while summarizing the tax burden of empirical research methods for measuring China’s real estate enterprises part of the tax burden. In the second part, content of this part constitute the key pointsof this paper empiricallywhich analyzes Chinese real estate tax burden.To start with, with the help of Chinese real estate Yearbook data and combining BCG matrix method from longitudinal to analysis Chinese real estate enterprises’ tax burden of statusin recent years; the next, comparingfinancial data of tertiary industry listed company to other industry enterprise’s tax situation; once again, by analyzing various links of real estate enterprises’ tax, to assess its rationality. In the third part, with the upper portion of the tax burden of the empirical analyses, I draw a conclusion that Chinese real estate enterprises’ taxesare irrational, and then I will analyze causes and effects of this truth. In the fourth part: according to the real estate tax’s problems in China,I put forward measures and proposals from the angle of government and enterprises’ perspective. Analyzing tax burden of real estate enterprises in China comprehensively.I would like to assessits reasonableness and the existing problems, as well asmake some valuable suggestions for our real estate business tax of existing problems in order to creating a fairly fair, justifiable and open competition environmentformore healthy development of real estate enterprise.