Research On The Impact Of The Reform To Replace Business Tax With Value-added Tax On Construction Enterprises

According to an important deployment of the Fifth Plenum of 17 th CPC Central Committee, China has begun to implement the reform of replacing the business tax with value-added tax. This reform has also become an important task in the reform of China's fiscal and taxation system during the �Twelfth Five-year Plan�. In both decisions made in the Third Plenum of 18 th CPC Central Committee and the �Overall program of deepening the reform of the fiscal and taxation system�, specific requirements were put forward for the reform of the fiscal and taxation system, and the great significance of the change from business tax to value-added tax was fully affirmed. The year 2014 witnessed a continued scope expansion of the value-added taxation and a further scope narrowing of the business taxation. The rail transport, postal services, telecommunications have been included into the scope of value-added taxation. According to plan requirements, the reform to replace the business tax with value-added tax is expected to be completely completed in this year. The real estate industry, construction industry, financial services, life services and other industries are expected to be included the scope of the reform of replacing the business tax with value-added tax.The construction industry is the pillar industry of China. In the construction industry, business taxes have been levied. 3% of the overall revenues of enterprises are levied as the business tax over construction enterprises. The value-added tax reform program has actual effects on reducing tax burdens of the construction industry. As the management model of China's construction industry is quite extensive, the implementation of the reform to replace the business tax with value-added tax is bound to greatly affect construction companies. In the reform background, the purpose of this thesis is to put forward the effective recommendations to construction enterprises and make construction enterprises catch the opportunity of the VAT reform. In this thesis, policies of replacing the business tax with value-added value and concrete steps to implement policies in China are introduced. On this basis, relevant theories of value-added tax reform are elaborated to make a detailed analysis of the significance and necessity of the construction industry to make a reform of replacing the business tax with value-added reform. In this thesis, a case study is made of some enterprises. A comparison is made of impacts of different taxation conditions on the enterprises in terms of their tax burdens, financial conditions, tax planning and otherness. On the basis of an analysis of the enterprises, effective recommendations and countermeasures will be put forward to construction enterprises.