Research On Influences Of Replacing Business Tax With Value-added Tax On G Real Estate Development Enterprise Tax Burden

With the process of replacing business tax with value-added tax,it has become a hot topic.As an important policy and measure of structural tax reduction,the reform means the completely leaving of business tax from the tax range of China,and improves the VAT chain.It also contributes to the acceleration of the economic development mode transformation and the promotion of strategic adjustment of economic structure.The reform is significant and has far-reaching influence.It is very challenging for the real estate development enterprises to cope with the reform in a short term.In the early stage of tax reform,the tax burden of some enterprises will even increases.But in the long run,a more perfect modern tax system will be beneficial to the development of modern tax system and the whole economy.It is known that the real estate enterprise has a special status in China.The rapid development of real estate market increases number of building stock,improves the level of housing for urban residents,and meet the demand of the market;the real estate enterprise also facilitates urbanization.The government pushes the process of the VAT instead of business tax from May 1st,2016,including the construction enterprise,the real estate enterprise,the financial sector,life service industry and the new real estate.It is a short time from the introduction of detailed rules and regulations to the implementation of the policy which brings challenges to the tax planning of real estate enterprise.Therefore,research on influences of replacing business tax with value-added tax on G real estate development enterprise tax burden is fresh in a degree.Firstly,the paper summaries the domestic and foreign scholars research.The researches mainly focused on the advantages value-added tax and real estate tax levy,the motivation of replacing business tax with VAT,and the influence.Combined with the present situation of real estate development enterprises and its importance in economy,this paper studies the influence of replacing business tax with VAT on the tax burden of real estate development enterprises.Secondly,this study reviews the relevant theory and literature,analyzes the influence of replacing business tax with VAT on real estate enterprise in theory and puts forward the calculation method of the difference of turnover tax,urban construction tax and education surcharge,corporate income tax and total tax burden before and after the reform.Thirdly,with the combination of theory and practice,we introduce in case study.This paper is supposed to provide some suggestions for the real estate enterprises to deal with the change of the reform.Considering the upstream industry of the real estate development enterprises has different input tax rate,this research will calculate differences of tax burden in 2014,2015 and 2016 of the G real estate development enterprises before and after the reform based on different input tax rate.Calculating the critical input tax rate which will reduce the overall tax burden can put forward suggestions of how to reduce the tax burden on the basis of reasonable prediction of the critical input tax rate.It will provide recommendations for the reasonable adjustment of corporate strategy.Then,in order to further understand the specific business structure of the real estate development enterprise and the corresponding input tax,this paper will analyze the project A of G real estate development enterprise and find out the requirements of the enterprise input tax rate under a specific critical input tax rate,which can contribute to the project planning.Finally,this study is supposed to provide measures of tax planning for real estate development enterprises in order to effectively respond to the reform.The results show that from 2014 to 2016,the overall tax burdens which can reduce the critical input tax rate are 6.42%?4.29% and 5.74%.With the increase in the rate of low input tax deduction,the overall tax burden would decline more.The input tax deduction of project A exceeds the input tax deduction of G enterprise.Therefore,based on the analysis of historical data,G enterprises should reasonably predict the future income tax rate,improve selection and planning of the project combined with the needs of their own development strategy,so that the overall enterprise income tax rate will reach the objectives and ultimately help enterprises achieve the goal of structural tax cuts.This paper suggests that there are three methods for the enterprise to develop rapidly.Firstly,the real estate enterprise should focus on the reasonable tax planning,which both contains the income and Input tax.Secondly,the enterprise should pay more attendtion on the contract management,and put forward higher requirements for the professional quality of accounting personnel.Thirdly,the real estate enterprises have to establish and improve the internal control system.In conclusion,this study hope that the real estate enterprises could get some practical and reasonable suggestions to face the replacement of business tax with value-added tax.