| The public welfare project refers to the non-profit and social effective projects are that the purpose of seeking social effects, including agriculture, environmental protection, water conservancy, education, and transportation, etc. With the development of China's economy and the improvement of people's living standard, the role of the public welfare project has become obviously increase. Before 2012, China's government departments usually use this type of construction project BT or full investment, due to the BT mode could increase financial pressure of government, so in 2012.12 the Ministry of Finance and the National Development and Reform Commission issued the "notice on the local government to stop the illegal financing behavior". In the notice, the use of domestic government agencies to carry out BT financing behavior has been included in the law. Up to now, the domestic government agencies have widely adopted the PPP model of public-private partnerships, the introduction of social capital into the field of public welfare projects. Due to low return and no cash flow in public welfare PPP project, so it is difficult to attract social capital to participate in the projects. At the same time, the construction industry is in the transition stage of "replacing business tax with value-added tax(VAT)",camp changed to increase the tax burden, financial, management and other issues affecting the company's revenue.Social capital into the public welfare PPP project is undoubtedly the most concerned about the benefits,while the "replacing business tax with VAT" changed to increase the tax burden has brought a greater impact on income. Therefore, this essay combined with many domestic literatures and foreign literatures. Using case analysis, comparative analysis and other methods to select a representative PPP project in "L" city as a case study. This essay through "tax policies and regulations related to "replacing business tax with VAT ”,for the construction enterprises under different tax rates and income " replacing business tax with VAT " before and after the construction enterprise profit condition were analyzed. The implementation of" replacing business tax with VAT " will help the construction enterprises to achieve more profits in the public PPP in conclusion. But at the same time through the data to see the current construction industry problems of "replacing business tax with VAT",and some influencing factors and the impact of public welfare project PPP landing.Therefore, this article puts forward some countermeasures and suggestions to solve these problems, which could provide a guideline for these firms, and help construction enterprises easier to participate in public welfare PPP project construction. Finally to achieve the maximization common benefits of government departments and the construction enterprise. |
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