Research On The Effect Of "Replacing BT With VAT" Policy On Tax Burden And Performance Of Real Estate Developer

The policy of replacing business tax with value-added tax is another major tax reform since the tax distribution reform in 1994.Practice has proved that the policy of replacing the business tax with a value-added tax plays a great role in eliminating double taxation,optimizing tax structure,improving enterprise performance and promoting industrial structure upgrading.The real estate industry is one of the pillar industries of China's national economy and also the main source of tax.On May 1.2016,the real estate industry was the last group to be included in the pilot scope of replacing business tax with value-added tax.Given the complexity and particularity of the real estate industry,how the implementation effect of "replacing the business tax with a value-added tax" is,in particular,how it plays a role in reducing the burden and improving the efficiency of enterprises,is worth in-depth study.Taking real estate development enterprises as the research object,this paper analyzes the influence of "replacing business tax with value-added tax" on tax burden and performance of real estate development enterprises from theoretical and empirical perspectives respectively.First of all,this paper summarizes the relevant researches of domestic and foreign scholars,and introduces the relevant concepts,basic situation and theoretical basis of the policy of replacing business tax with value-added tax and real estate development enterprises.Next to the real estate development enterprise "camp to add" generalizes the content of the policy,then respectively from two angles expounds the present situation and the mechanism analysis to add "camp" impact on real estate development enterprise tax burden and performance,and measure real estate development enterprise turnover tax,income tax and the total tax burden level of tax changes the balance.Then,based on the quarterly financial data of real estate development companies in Shanghai and Shenzhen from January 2013 to December 2019,the DID model was used for empirical test.The empirical results show that by 2019,the policy of replacing business tax with value-added tax has not significantly reduced the overall tax burden level of real estate development enterprises,but the overall performance of enterprises has been significantly improved.Finally,based on the theoretical analysis and empirical results,the paper puts forward relevant policy Suggestions and countermeasures from the government and enterprises.At the government level,it is suggested to expand the scope of deductible cost of VAT,continue to reduce the VAT rate,simplify the process of obtaining VAT special invoices and reasonably control the land price.At the enterprise level,it is suggested to carry out tax planning reasonably,improve the management level of VAT invoices,strengthen personnel training and communicate with tax authorities and other relevant departments.