Analysis And Countermeasure Research On Tax Burden Caused By Replacing The Business Tax With Vat On Construction Enterprises In Jiangxi Province

The construction industry is one of the pillar industries of China's national economy,which provides material conditions for the various sectors of the national economy.It's the basic and leading industry which other related industries' development depend on,and it absorbs employment population more than forty million.It has an extremely important role in the economic development and stability.The gross output value of China's construction industry reached 18075.7 billion in 2015,accounting for 26.71% of the gross national product of the same period.With the rapid development of social economy,many problem gradually exposed in the construction industry under the business tax system such as the repeated taxation,the development of related industries do not match and so on.The pilot project to replace business tax with value-added tax was fully implemented since May 1,2016.The taxes of construction industry are changed from business tax to value added tax,and the collection agencies are changed from local tax departments to national tax departments.The reform has a significant influence in optimizing the economic structure,advancing economic development,promoting industrial adjustment and reconstruction of local tax system and other aspects.China's current macroeconomic showed "L" trend,the construction industry is faced with an unfavorable situation of operating income growth slowed,falling rate of profit."To replace the business tax with a value-added tax" as a tax reform and major measures of structural tax reductions,the policy effect is the key and hot issues in current field of taxation.This paper expounded the theoretical basis of value-added tax to replace business tax from the tax fairness and tax efficiency,and deeply interpreted and analyzed the fiscal policy focus on construction in pilot period and the changes in the various elements of the tax levy.This paper qualitatively analyzed the specific impact on construction enterprises and tax management from the perspective of Jiangxi Province,with 2011-2015 year development of Jiangxi construction industry and tax management,and additionally discussed the possible new problems after the change.In this paper,I quantitatively estimated the changes of tax burden of construction industry before and after the reform by using input-output table(production method)at the macro level,and then verified from the micro level to support the macro measurement results by selecting the year of 2015 financial data which has beenadjusted in accordance with tax requirements of the representative sample enterprises in Jiangxi province to measure the actual tax burden of enterprises before and after the reform,and draws the following conclusions: " The theory tax burden of construction enterprises will fall sharply after replacing business tax with value-added tax.The key to increase or decrease the tax burden is depend on how many deductible input tax can be obtained.Business operation and management mode,the tax levy departments all need to gradually adapt.During this period,the tax burden of enterprise will appear"increase – decrease-stable "trend.The inherent requirement to reduce tax burden will bring the industry reshuffle,prompt enterprises to constantly adjust and optimize the cost structure.In the final strategy recommendations,this paper put forward operable countermeasure from the enterprise management and tax administration by adopting the experience of the OECD and developing countries construction VAT for reference.This paper has a practical value in the construction enterprise and tax administration to enhance their management.