Analysis Of The Tax Burden Of China's Real Estate Industry

The real estate industry has been one of the pillar industries of our national economy all the time.As the lead of the tertiary industry,the real estate industry,which has gathered a huge amount of disposable financial resources for local governments,has helped the investment growth in some regions.However,with the rapid development of the real estate industry,its tax is also rising.And the taxes rising brings about the result that of property estate developer is also becoming heavier and heavier.According to fundamental theory of the finance,the tax burden was featured by the function of transfer.With the consequently rising of the taxes,the property developers are inclined to raise the house prices to shift the increased tax to consumers.As a result,such a high transfer tax contributes to higher house prices directly.Tax effect undoubtedly magnifies steep liters curve of house prices.If the negative effects brought about by the increase of real estate tax become serious,the house prices soared and economic structure develop twisty.It will also lead to the hidden danger that the local government debt remains high and the debt risk increases continuously.To cope with this situation country introduces series of control policies to ease off the tension.In March our 18,2016,the State Council executive meeting examined and adopted the full implementation of "replacing business tax with value-added tax(VAT)pilot program,which decides that since May 1,2016,it will fully open pilot of " replacing business tax with value-added tax(VAT)",including the construction industry,real estate,finance,life service industry.The real estate industry officially promote the great tax reform measures of " replacing business tax with value-added tax(VAT)”This article,from the horizontal and vertical two aspects,will compare the tax burden in the real estate industry to that in other industries and will also make a comparison about the tax burden in different areas to analyze the level of China's real estate industry tax.And it will make a theoretical model of the real estate tax burden under the situation of "replacing business tax with value-added tax(VAT)" to analyze the tax burden's changes of the real estate industry in China from the aspects of time and number.Based on this,this article will put forward some suggestions to balance the tax burden of real estate enterprises,aiming to provide a reasonable and healthy development environment for the real estate industry.