Study On The Tax Burden Impact Caused By Tax Reform Of W Estate Enterprises

In 1994,China’s tax-sharing system reform formed a tax structure with two major turnover taxes of value-added tax(VAT)and business tax.From January 2012,China’s provincial(city)districts and industries which based on types have carried out pilot reforms of “replacing business tax with VAT”.By May 2016,the construction industry,real estate industry,financial industry and life service industry have been included in the pilot program of “replacing business tax with VAT”.From then on,China has fully entered the era of VAT.The real estate industry occupies a large proportion in China’s GDP,and the upstream and downstream industries are also the most involved.Meanwhile,due to the long construction and operation cycle,and a variety of extents of advance payment,land price and new property of the enterprise,it has a great significance to explore the impact of “replacing business tax with VAT” on the tax burden,operation and finance of real estate enterprises from theoretical and practical perspectives.This paper summarizes and analyzes the domestic and international research status of VAT,and theoretically explains the concept of business tax and VAT and the scope of tax collection,clarifies the principles of tax fairness and tax efficiency,and summarizes the theories of tax burden,tax neutrality,tax transfer and tax planning.Theoretical analysis and comparison of the changes in the tax system before and after the “replacing business tax with VAT” in real estate enterprise from the aspects of the tax burden in acquisition,circulation,and retention phases.The overall impact of “replacing business tax with VAT” on real estate enterprises is analyzed from the aspects of financial accounting system,enterprise operating cost,tax collection and management system and tax burden.Analyzes the overall taxation situation of W real estate companies,and measures the relevant data under the “replacing business tax with VAT” policy.Under the two different tax systems,the tax changes of W company turnover tax,land value-added tax and enterprise income tax are analyzed.The main risks of W company under policy of “replacing business tax with VAT” such as the insufficient deduction of input tax,the transfer of upstream enterprise tax burden,and the change of invoice management mode are analyzed.Come up with suggestions and countermeasures for W real estate company which from the aspects of financial management,tax planning,and business management to provide guidance and support for the company to rationally apply tax planning,improve financial management capabilities,optimize business models,and effectively exert the effect of the “replacing business tax with VAT” for the real estate enterprises on tax reduction.