The Discussion About The Impact Of The Reform Program To Replace Business Tax With Value-added Tax On Real Estate

On March 18,2016,the State Council executive meeting decided that the tax reform which replaces business tax to value-added tax would expand to the construction industry,real estate,finance and life services from May 1,2016,to achieve full coverage of goods and services industry,to connect the tax deduction chain,to support the development of modern service industry and manufacturing upgrading.Real estate that occupies a large proportion of GDP will take into reform,which has a great significance on real estate industry,so far as to economy.Changes on tax burden,financial management,accounting and so on bring a lot of challenges to the real estate.Based on the situation of the reform program to replace business tax with VAT,combining with the state of real estate industry,and on the basis of reading a large number of documents and researching practice,this paper discusses the impacts of tax burden and financial management on real estate industry according to the Y Real Estate Development Enterprise,hoping that this article can give experience to enterprises.In addition,the contents of this paper are divided into the following parts: I will introduce the research background and importance,the current status of the research at home and abroad,and also demonstrate the research methods,as well as the disadvantages of this paper on the first part.Then,the theoretical basis to the tax reform and the necessity and feasibility analysis of the tax reform in relation to real estate are revolved.First of all,the theory related to business tax and value-added tax is elaborated.Then,reviewing the history and researching the current situation of real estate industry in China.At last,introducing the specific contents about the tax reform policy and by analyzing the difference between the two taxes,the necessity and feasibility of the tax reform is made known.Thirdly,an analysis of the impact on the policy is drawn.At first,comparing business tax with value-added tax about the tax burden on real estate industry.Then,contacting the upstream and downstream enterprises with the real estate to highlight the great changes in different sectors,to highlight the advantages of value-added tax system and benefits to the economic.Fourthly,taking Y Real Estate Development Enterprise as an example,this article evaluates the changes in the tax burden,operation results,financial status and cash flow of Y Real Estate under different modes.Besides,enterprises are facing many difficulties during the reform period,the paper will indicate appropriate measures and provide reference.Fifthly,the thesis provides a lot advice to companies and policy.According to the analysis of this paper,the conclusions are given and the suggestions and policy suggestions are provided.Furthermore,the paper explains the limitations of the research and the direction of further research.