The Influence Of "Business Tax To VAT Reform" On The Financial Performance Of Real Estate Enterprises

Taxation policy is a powerful economic tool for the government's macro-control.The Chinese government has always reduced tax burden as an important measure for enterprises to improve their operating performance and support their growth.Especially in recent years,China has vigorously promoted tax reduction and burden reduction,and promoted supply-side reform and economic structural transformation.Among them,the reform program to replace the business tax with value-added tax(referred to as "business tax to VAT")during the 13th Five-Year Plan period is an important part of China's tax reform.On May 1,2016,the country comprehensively promoted "business tax to VAT"reform,and the real estate industry was included in the reform scope.Since 2018,the VAT rate of most industries such as the real estate industry has been continuously reduced,and China's "business tax to VAT" has continued to deepen.In this context,studying the taxation status of real estate companies and the impact of tax reform on their performance can help companies adapt to tax reform as soon as possible,enjoy policy dividends,improve economic efficiency,and promote industrial transformation and upgrading.This article starts with real estate listed companies,puts forward relevant assumptions,and establishes an empirical model.The financial data of 62 real estate listed companies in Shanghai and Shenzhen A shares from 2014 to 2018 were collected as research samples.First,factor analysis is used to extract four common factors from related financial indicators.The expression of the comprehensive financial performance of listed real estate companies can be obtained after assigning weights.Second,through descriptive analysis,correlation analysis and panel regression analysis,empirical research was conducted from three perspectives:change in turnover tax burden,fixed asset deduction effect,and production cost deduction effect in the context of the implementation of the comprehensive "business tax to VAT" policy,and it is concluded that "VAT reform increase" will affect real estate companies.the implementation of "business tax to VAT",changes in turnover tax burdens,fixed asset deduction effects,and production cost deduction effects.It can be concluded that the tax reform has a significant positive impact on the financial performance of real estate companies.After the tax reform,the turnover tax burden of real estate companies has decreased,but the turnover tax burden has decreased slightly,the turnover tax burden is significantly negatively related to corporate financial performance.The mediator effect test shows that "business tax to VAT" can increase the financial performance of real estate enterprises by adding fixed asset deductions and deductible production cost ratios.In the end,based on empirical conclusions and existing problems,it proposes countermeasures at the corporate and government levels to help companies better enjoy policy dividends and achieve multiple benefits.