The Research On Tax Risks Of Real Estate Enterprises On The Land Value-added Tax In BT Reforms To VAT

With the issue of Notice on Comprehensive Promotion of the Pilot Program of Changing Business Tax into VAT by State Administration of Taxation,(Finance and Taxation[2016]No.36),the real estate industry was formally included in the experimental program of Business Tax into VAT.It should be made clear that the reform of Business Tax into VAT may cause overall impacts.The influences will not be limited to VAT only.Since Land Value-added Tax is one of the most important resources of taxes in the real estate industry,the reform will undoubtedly bring about disruptive changes to its taxation basis,accounting and taxation collecting management.If the real estate companies only pay attention to the impact of VAT in this tax reform and neglect Land Value-added Tax,there will inevitably be a series of tax risks and unnecessary losses.The relevant policies on Land Value-added Tax and the follow-up supplementary documents of Business Tax into VAT are almost simultaneous in issue and implementation,which requires enterprises to cope with various changes after the reform.There is only a short time between the issue and implementation of the policy,which brings big pressure and challenges for real estate enterprises.Under such background,this articles is based on the new regulations of the VAT policies of the land after the Business Tax into VAT reform.Analysis on the tax risks of Land Value-added Tax of real estate enterprises under the Business Tax into VAT reform.Cases are used for discussions.Based on the tax policy of "prepay first,liquidation afterwards" in terms of Land Value-added Tax,this paper conducts an in-depth analysis on the relevant new policy in the pre-admission stage and the liquidation stage,and then summarizes the tax risks in Land Value-added Tax in the corresponding stages.The risks include taxation differences between Land Value-added Tax and VAT basis,differences between taxable income and accounting income tax,changes in deductions for cost items and tax deductions.A real estate enterprise Z,which has group backgrounds is selected as an example,and further analysis and explanations are conducted on pre-admission and liquidation of tax risks related to Land Value-added Tax business mentioned above.Finally,the cases rises to universal,and suggestions are proposed on tax risk prevention of Land Value-added Tax for real estate companies from the perspectives of taxation administration and planning.