The Impact Of “competition And Reform” On Real Estate Development Enterprises And Countermeasures

The real estate accounted for a large proportion GDP of China.In recent years,with the rapid development of the real estate,the competition in this industry gets fierce,and the house price of first-tier cities,second-tier spotted city,and the cities around first-tier cities rise steadily,the state of real estate regulation has also been strengthened.Since May 1st of 2016,China has fully implemented the policy of "replacing business tax with value-added tax(VAT)",in which the applicable tax rate of value-added tax of the real estate industry is 11%,this brought new challenges to the development of real estate industry in the future.This essay aims to research and analyze the effect that “replacing business tax with value-added tax(VAT)" brought to the real estate enterprises and seek for countermeasures,hoping to help the real estate enterprises to deal with the policy of replacing business tax with value-added tax(VAT).The real estate involved 11 kinds of taxes,which mainly appears in the following 3 sections of real estate development: the first is the development of part of the deed tax,land tax,stamp tax;then transfer sales involving land value-added tax,business tax,city maintenance and construction tax,education surcharge and local education surcharge,income tax and stamp tax;finally is to maintain links to urban land use tax and property tax.This article adopts the method of combination of theory and case,first introduced the real estate relative tax types,tax rates,overall tax burden of this industry and tax structure based on the business process and characteristics of real estate industry in China;then analyzes the impact of replacing business tax with value-added tax(VAT)on real estate enterprises by taking ZJ company as an example,which is relatively representative in real estate industry.After case analysis,we can draw the following conclusions:According to the analysis of ZJ company's actual project A and enterprise reports,it's believed that "replacing business tax with value-added tax(VAT)" had a certain impact on the company's tax and financial index.In the project A,with "replacing business tax with value-added tax(VAT)",the value-added tax increases the tax incidence to the ZJ,which exceeds the business tax.Meanwhile,the operation income has a certain decline.In addition to the impact of the decline in revenue,the project profit is also affected by the cost.The cost decreased due to the presence of input VAT deduction,but the decrease extent is not as large as that of income,so eventually the profit might decline.After replace business tax with value-added tax(VAT),due to the two characteristics of the real estate industry-intensive capital intensive and long period,it may increase short-term outflow of cash outflow among enterprises.Through the analysis,we believe that the ZJ real estate enterprise can deal with "replacing business tax with value-added tax(VAT)from the following several aspects:ZJ company can optimize the selection of its suppliers,choosing the suppliers that can issue VAT invoices;For the development direction and house design,it's better to properly develop commercial real estate and to design hardbound house more possibly;Make use of the time division of old real estate projects to do the tax plan,etc.