A Study On The Impact Of "Replacement Of Business Tax With Value-added Tax" On The Financial Work Of Construction Enterprise Z And Corresponding Countermeasures

One important reform proposed in the outline of the 12 th Five-Year Plan is to cancel business tax and impose value-added tax instead("Replacement of Business Tax with Value-added Tax" hereafter).It is a further vital reform of tax system following value-added tax transformation as well as a major initiative to perform structural tax reduction in the new normal circumstances.According to the resolution,the reform is targeted to enlarge the scope of value-added tax application and move those industries where business tax used to be applicable to the domain of value-added tax.Expansion and implementation of "Replacement of Business Tax with Value-added Tax" was determined in China on May 1,2016.It has been tried in Shanghai for over five years since its start of trial on Jan.1,2012.Together with the over half a year of national application,the advantages of the reform have emerged.The "Replacement of Business Tax to Value-added Tax" has optimized the structure of tax system,eliminated duplicated taxation,and realized "tax neutrality",which helps to create more favorable taxation environment for economical development and benefits in relieving tax payer's burden and proactively promoting construction industry.Have taken "Replacement of Business Tax with Value-added Tax" as the background,this paper selectes an construction enterprise Z as the object of study.First of all,to the domestic "Replacement of Business Tax with Value-added Tax " by the literature and research results for the theoretical basis,analysis of the construction industry to implement the " Replacement of Business Tax with Value-added Tax " the pros and cons.Then,through the financial data of Z enterprise,combined with the actual situation of the initial Z enterprises,this paper analyzes the financial impact of the tax reform to Z enterprise,including assets,liabilities,income,cost and tax burden.Finally,the corresponding countermeasures and suggestions are put forward for these effects and changes.This paper attempts to extend the influence and change of Z case analysis and the corresponding countermeasures and suggestions to the same type of construction enterprise,hoping to have reference and guidance for the same type of construction enterprise.