The Research Of Value-added Tax Planning Of Hunan Qiao Kou Construction Company

With the maturing of the market economy and the improvement of the laws and regulations,taxation has gradually been recognized and gained a lot of attention by most enterprises.In order to maximize its market value and improve the competitiveness,enterprise's requirement on tax planning is more and more intense.Under the background of the construction industry to carry out a comprehensive tax reform called "business tax to value-added tax",the tax system,tax burden,tax administration as well as the funds of a construction enterprise will confront with a big difference.These force the building enterprises to catch the chance of tax reform and make a prior arrangement of business operations.They should design its tax planning program legitimately and reduce its tax expenditure,so that the cost of operations can be decreased.Hence,the paper will focus on the research of value-added tax(VAT)planning in construction industry under the current situation that the business tax reform to value-added tax.Firstly,a systematic study of VAT and tax planning is performed by reading many articles from both domestic and foreign.Yet we make a conclusion and evaluation of these researches.Secondly,an introduction of some related theoretical foundations of VAT and tax planning are proposed to make a further understanding of its principle.In addition,we put forward the characteristics of construction industry and analyze the advantages and disadvantages of the implementation of "business tax to VAT".In order to perform a more thorough study on the VAT tax planning in construction industry,we choice the Hunan Qiao Kou Construction Company(i.e.Qiao Kou)as the subject to make a case analysis.We make an overview of the company and investigate its status quo of tax planning.The problems faced by Qiao Kou are analyzed and the space of its VAT tax planning is researched based on the investigations.Finally,with the combination of theoretical analysis and case study,we choice three aspects due to the characteristics of its construction cost,which are leasing business,engineering-procurement-construction(EPC)contract and supplier selection,to design an implementation program of tax planning for Qiao Kou.Moreover,some suggestions such as build a management system,strength business training and improve institutional arrangement of tax planning are proposed for the implementation of VAT planning.This paper is on the basis of tax planning and the characteristics of construction industry in our country with a case study of Qiao Kou,to make a thorough research on the VAT planning under the background of business tax reform to VAT.We hope the implementing measures can provide some reasonable recommendations for VAT planning in construction industry.