Research About Tax Planning Of SJ Construction Company Based On “Replace Business Tax With Value-added Tax”

From May 1st,2016,the construction industry has begun to fully implement “replace business tax with value-added tax” throughout the country.“Replace business tax with value-added tax” is an event that has a profound impact on China’s economy.It opens up the various deduction chains in the economic links and also solved the problem of double taxation under the business tax system.But,the nominal tax rate of construction industryhas greatly improved after “replace business tax with value-added tax”,the actual tax burden of many construction industryraised instead of drop.Therefore,the study of tax planning for the construction industry has a strong practical significance.At present,domestic and foreign scholars have conducted extensive and in-depth research and discussion on tax planning,proposed the concept and principles of tax planning,and rationally classified tax planning.As the tax planning in foreign countries started earlier,theoretical research and practical experience are more abundant,however,relative lack of research on tax planning in the construction industry.China started late in this regard,but it also achieved fruitful results.As a result of the implementation of the “replace business tax with value-added tax” China began to study the tax planning of the construction industry.This paper is based on the “replace business tax with value-added tax” background,to study the tax planning of SJ Construction Company.This paper analyzes the impact of the “replace business tax with value-added tax” to the SJ Company and measures the VAT tax burden.Finding out that because of more difficult for raw materials to obtain input invoices and labor costs cannot obtain input invoices,the financial cost of SJ Company was increased,the cash flow expenses increased,the VAT tax burden was raised instead of drop,and there was a higher demand for the company’s staff’s related business capabilities after “replace business tax with value-added tax”.Based on the basic theory of tax planning and the characteristics of the taxation system of value-added tax,this paper use the good practice of VAT tax planning at home and abroad for reference,tax planning is mainly carried out in four aspects: contract management,tax incentives,changing taxpayer identity,and supplier selection,the effect of tax planning was evaluated.Finally,it analyzes the possible tax planning risks in tax planning and puts forward opinions and suggestions.