Research On The Impact Of "BT To VAT" On Financial Performance Of Construction Enterprises

Business tax reform VAT is another major tax reform in China following the VAT reform in 2009.On January 1,2012,Shanghai started to implement the business tax into value-added tax in Shanghai,after more than four years,the scope of pilot projects will be extended to construction industry,real estate industry,financial industry and daily service industry from May 1,2016.The implementation of the policy of increasing the number of operations in China has been fully implemented.Construction companies are one of the pillar industries in the development of the national economy.The implementation of the Business tax reform policy can effectively avoid problems such as double taxation and tax evasion.The impact of the implementation of the business reform and increase policy on the construction companies is mainly reflected in the financial performance of the company,the research of this paper has important theoretical value and practical significance.By consulting a large amount of literature,based on previous research,this article is based on the theory of tax fairness,tax neutrality,optimal taxation,and optimal taxation system,and combing related literature and concepts,using a combination of theory and practice.Investigate the impact of " replacing business tax with value-added tax " on financial performance of construction companies.From the perspective of financial performance,it analyzes the impact of the “replacing business tax with value-added tax” on corporate accounting and financial indicators,and proposes research hypotheses.Through select the financial data of the listed companies in the construction industry in China from the second half of 2016 to the first half of 2017,and select the indicators from the four aspects of profitability,operational capability,solvency and future value Factor analysis method,the comprehensive financial performance evaluation index of the enterprise is taken as the explanatory variable,and the proportion of the fixed assets investment ratio,the raw material cost and the total operating cost as the explanatory variables,the company size and the new assuming that the index represents the national economic development as control variable,and studying the impact of " Business tax reform VAT " on the financial performance of construction enterprises.Finally,according to the theoretical analysis and empirical research,the construction companies and the government put forward relevant countermeasures and recommendations.The results of the study show that: after the “replacing the business tax with VAT”,the amount of tax burden changes is significantly negatively correlated with the financial performance of construction companies,the reduction in tax burden will increase the financial performance of the company;The input ratio of raw material costs will have a significant positive correlation with the financial performance of construction companies,the increase in the input ratio of raw material costs will increase the financial performance of the company;The increase in investment in fixed assets has a significant positive correlation with the financial performance of construction companies,increasing the input of new fixed assets will increase the financial performance of the company.This study will help construction companies improve their competitiveness and management level,it will also provide some reference and guidance to other industries.It will help the government to further improve the policy of “Business tax reform VAT” and provide guarantee for the healthy development of construction companies.