A Study On Taxation Of Wastewater Treatment PPP Projects

The PPP is a joint cooperation between the government and social capital,so that the participating parties can jointly share interests,share responsibilities,and build risks.It is characterized by more use of the power of social capital and less reliance on government investment to meet the needs of the public.This model has attracted a large number of social capital to participate in investment,which is conducive to alleviating local government debt and thus promoting economic growth.However,as a new type of financing method,the limitations of the PPP have become increasingly prominent.Due to the scattered distribution of relevant tax policies of PPP projects,the tax cost of PPP projects in the phases of construction,operation and transfer is relatively high,which is too a large extent detrimental to the development of PPP investment and construction.The country is now more strict on the management of PPP projects,and tax issues for many projects have become more prominent.Therefore,this paper takes the sewage treatment plant as an example to deeply study the taxation issues of PPP projects and is conducive to promoting the development of investment and construction of PPP projects.This article mainly combines the literature analysis method and the case analysis method,carries on the research to the taxation problem of sewage treatment PPP project of J city and B city.First of all,the thesis reviews the theoretical basis and taxation policy of PPP project in China from three aspects:the overview of PPP model,the development status of PPP project,and tax policy.Secondly,take the J city and B city sewage treatment plant PPP project as an example,this paper analyzes the necessity of using the PPP model for the project,and further analyzes the investment operation of the project,cash flow and profitability of the project,and then analyzes two projects' similarities and differences in taxation.Finally,the article discusses the tax-related issues of the sewage treatment PPP project,and puts forward proposals for improving the preferential tax policies of PPP projects based on the perspective of taxation,including at the national level and at the level of local tax authorities.The study finds that at present,the development of China's PPP model is more through financial subsidies as the main source of income.In terms of taxation,the main problem is that the country has not formulated tax incentives specifically for PPP projects.In addition,through the sewage treatment projects of J City and B City,PPP projects still have problems such as VAT input tax retained,investment income related tax policy disputes,and duplicated taxation of assets transferred.In view of the taxation problems that appear in the early stage of normalized development of the PPP model,this paper mainly proposes to speed up the establishment of tax support system and tax preferential policies for PPP projects,improve the taxation policies for investment income tax exemption preferential policies and transfer of assets,strengthen the promotion of tax incentives and improve Tax officials' policy recommendations on tax handling capabilities.