Analysis Of The Impact And Countermeasure Of "Replace The Business Tax With A Value-added Tax" On S Real Estate Company

In 1979,China began to implement the value-added tax system.From 1994,business tax and value-added tax both coexist,the situation lead to multipled taxation.The increase of tax costs is not conducive to enterprise.The interruption of the tax deduction chain between the secondary industry and the service sector is not conducive to industrial convergence.On November 16,2011,the implementation of the "pilot program" marked the beginning of the reform of the tax system in China.May 1,2016,the construction industry,real estate and all applicable business tax industry into the pilot area.In this paper,the overall policy of tax reform in the construction industry,real estate,financial and other aspects is the basis of the study.This paper presents the background of tax reform,domestic and foreign literature and related theoretical basis,combines with the recent development of the real estate industry characteristics and analyzes the specific impact of the tax reform bringing to the real estate industry.First of all,this paper from the perspectives of the tax burden,operating conditions,and cashflow trend,analyzes the expected theoretical impact brought by the tax reform to the real estate industry.In theory,the tax reform will reduce the tax burden of turnover tax,urban construction tax and education surcharge on the real estate industry and increase the land value-added tax.But the overall tax burden is lower than before.After the tax reform,real estate business profits will increase and short-term cashflow is revitalized.So the business situation is getting better.About the common business models,this paper also analyzes specific impact of the tax reform,including Sales Pricing,Product Type,Land Acquisition,Supplier Selection,Party A Supplies and Sales Progress.Secondly,this paper chooses a property for sale of S Real Estate Company and analyzes the change of tax burden,costs and profits before and after the reform.The conclusion is tax burden has decreased due to the reform,which is in accordance with the previous theoretical analysis.Finally,this paper gives some countermeasures and suggestions according to the problems of S Real Estate Company which were found during the process of tax reform.1.Strengthen the procurement management.2.Adjust the product type and marketing strategy3.Modify the policies about value-added tax and improve staff professional ability level.