Financial Analysis Of PPP Mode Of Construction Industry Based On Business Transformation And Upgrading

Public-private Partnership refers that the Private sector is authorized by the Public sector to finance,build and operate some public projects for a period of time.It introduces social capital,relieves the pressure of the government investment and innovate the financing mechanism,thus promoting companies to participate in the management all the time and effectively enhancing the efficiency of resource allocation as well as accomplishing the government's,enterprises' and social win-win.At present,because the laws and regulations of the PPP projects are not clear and the local government's supporting measures are imperfect and the capital flow is slow with the project itself a long cycle,that leads to the fact that most participants are rich state-owned enterprises and most of the social capitals are in a waiting state.Since 1st,May,2016,the VAT reform is fully complemented,many construction enterprises in this transition period are confronted with various challenges in terms of organizational structure,production management and fiscal and tax management.The changes in tax brought a change in project revenues,costs and expenses and thus then completely overturned the habits that many enterprises have been accustomed to,such as organization structure,management contract,subcontract,purchase,capital and cost management work procedures,which forced those enterprises to make a big change in management.The PPP mode,as one of the way to improve the competitiveness of the construction industry,is undoubtedly affected to a certain extent.There is no doubt that the most attracting thing of social capital in the PPP project.is the benefit,but the tax changes brought by the VAT reform have an important impact on the benefit.Therefore,this article is based on numerous relative domestic and foreign references and theories,through case analysis,contrasting analysis and other methods,fiscal condition is analyzed from the perspective of the impact of the VAT reform on the revenue,costs and expenses in the PPP project.In this paper,the PPP project of the south square integrated transportation hub of the north railway station of the representative F ground train is selected as a case study of the impact of "replacing business tax with value-added tax" on the project.Based on the "battalion to add" after the related tax policy and regulation,analysis "camp"to the construction industry the PPP pattern of the impact of revenues,costs and expenses,and through the case data is calculated,compared to two kinds of tax system,the different applicable tax rate in corporate earnings,it is concluded that the"battalion to increase the implementation of the" help benefited more construction enterprises in the PPP project.But at the same time,through case analysis,it also reveals the problems existing in the current construction industry and the difficulties in the actual operation of PPP projects.This article will put forward countermeasures and Suggestions to solve these problems,the hope can cause internal building enterprise innovation mechanism,to optimize the design of the top,change the management idea,better devoted to the construction of the PPP project,realize the maximization of the benefit of the government,enterprises,social public,bonus share reform.