Research On Vat Tax Planning Of X Construction Company After "Replace The Business Tax With Vat"

Since May 1st 2016,our country carried out a policy called“replace business tax with value-added tax”,which has been more than a year.The policy aims to reduce the tax burden on enterprises.While,because of the characteristics such as specificity of products,long-term of production cycle,capital occupying,most of the construction companies’ tax has a certain amplitude increases after the tax reform rather than effectively be reduced.It makes construction companies get lower profit.In the domestic and foreign construction companies,the theory of the tax planning is relatively abundant now.But there is lack of a case study which is project specific.In this paper,the study found that X construction company’s tax rate is slightly higher after the reform.After the analysis of the various expenses,it found that it is hard to obtain special invoices or value-added tax can be the main cause of the rise.Therefore,it is particularly urgent for X construction company to make a VAT tax planning.In order to get a effective VAT tax planning,this article analysis tax rate before and after the reform through the comparative analysis method,and then designs the tax planning scheme.After that,the paper analysis the present situation and deficiency after optimization through case analysis,and figures out the optimized result,compared with before.The result shows that the optimized tax rate decreased by 1.76% than before.Article study shows that tax reform has brought great challenge to the construction industry,but it can also push up the construction industry.Through the overall tax planning scheme,arranging the production and business operation activities in advance to improve the core competitivenessby reducing spending in taxes to reduce operating costs.In the theoretical sense,few scholars have carried out the case study on the tax planning of value-added tax in the construction industry.This paper has theoretically enriched the research on VAT tax planning in China’s construction industry.In the practical significance,the design of tax planning scheme for construction company X has certain can be helpful.This paper can provides some ideas for construction company X.Finally,the author hopes that this paper can provide some value for other companies in the construction industry after tax reform.