Tax Planning For Construction Enterprises Under The Background Of Replace Business Tax With Value-added Tax

The construction industry is one of the most important industries in China’s secondary industry and plays a very important role in China’s economic and industrial structure.The value added of the national construction industry in 2017 reached nearly5.6 trillion yuan,accounting for 6.7% of China’s gross national product.Any change in the construction industry will directly or indirectly affect the daily work and life of the Chinese people.Beginning on May 1,2016,the four major industries,including the construction industry,nationwide began to implement the change of replace business tax with value-added tax.As a key industry in the reform,the construction industry has naturally attracted everyone’s attention.Before the reform,the business tax was relatively simple.Therefore,the related planning mainly involved in corporate income tax,and the planning of value-added tax is rarely involved.The planning of value-added tax is precisely the key work that the construction industry needs to face after the reform.The article expounds the theoretical basis of the reform from the three aspects of taxation regulation theory.The changes in the taxation system,tax rate,and tax-related practices of the construction industry business tax period and value-added tax period are elaborated.And by comparing the difference in tax burden and cost between the construction industry(general taxpayers)before and after the reform,we will study the impact of reform on it.The article selected 8 listed companies as representatives of large-scale construction enterprises,analyzed their financial statements,and studied the impact of the reform on listed construction enterprises.And through calculations,if the tax burden before and after the reform is equal,then the input tax of the cost needs to be deducted from the critical point.The tax planning part introduces the tax planning theory,and elaborates on the preconditions of tax planning,namely,the market economic system,the information asymmetry between the two parties,and the vacuum zone.It discusses the significance of tax planning and discusses it from both macro and micro levels.In the end,this paper takes H City H Construction Engineering Co.,Ltd.as an example,and puts forward corresponding planning countermeasures and suggestions according to the planning theory,including the planning of new contracts,the choice of contracting methods,the planning of tax time,etc.The company and other construction companies have certain reference significance.This will enable construction companies to adapt to reforms and reduce tax burdens during the period after the reform,which will help the long-term development of enterprises.