Study On The Financial Impact Of VAT Reformation On Real Estate Enterprise

In recent years,“Replacing business tax with value-added tax(VAT)”is an important measure for structural tax cuts and supply-side reforms in China.It plays an important role in eliminating double taxation,improving the chain of value-added tax,optimizing the tax structure,promoting industrial transformation and upgrade,and improves the comprehensive strength of enterprises.So far,the real estate industry has been fully integrated into the scope of the pilot reform.The real estate industry not only directly affects fiscal revenue,national economy and the people's living standards,but also indirectly affect the gross economic environment by other industries.Just because of it's importance,the real estate industry is facing extremely severe challenge for the real estate development enterprise,government departments and the general public.In order to analyze the effect of “replacing business tax with value-added tax“ on financial performance of real estate development enterprises,this paper chooses 39 listed real estate development companies as the sample,and selects its data from 2015 to June of 2017 to calculates and analyzes its main business(real estate development and operation).Firstly,based on the data in the first half of 2017 and 2015 of sample enterprises,the paper calculate the change of tax burden after the tax reform of real estate enterprises.The results show that there is a significant decline in the tax burden of real estate development enterprises,such as turnover tax,enterprise income tax,urban maintenance and construction tax and stamp duty,but the increase of land value increment tax is also obvious.However,the overall tax burden on real estate developers has declined after the tax reform.Then,in order to study the influence on corporate financial performance,this paper choose roe as the dependent variable,the deduction effects of production costs and fixed assets' input VAT dependent variable and land investment proportion as explained variables to establish the panel data regression model.The empirical results indicate that the deduction effects of production cost's input VAT has positive correlation with financial performance of the real estate corporate.The higher the deduction rate of cost is,the more optimistic the real estate corporate financial performance is.And the fixed asset's input VAT has no relationship with the real estate company's financial performers.But the land investment proportion has negative correlation with corporate financial performance.After studying this result,this is related to the industry characteristics of real estate enterprises and the long period of fixed asset return.Finally,in order to promote the steady and healthy development of the real estate development enterprises,the government should combine the VAT with land value increment tax in time,even cancel the land value increment tax,and adjust the land price rationally.Otherwise,the real estate development enterprises should pay more attention to improve the professional quality of personnel,and respond to policy changes at any time.Besides,tax planning is necessary to improve the level of corporate financial performance.