Research On Tax Planning Of HL Real Estate Company

The real estate industry in China has been growing rapidly and becoming a pillar in economy along with fast urbanization.The added value of real estate industry in 2019 is 69631 billion yuan,an increase of 500.8 billion yuan from the previous year,accounting for 7.03% of 2019 GDP.On one hand,the relationship between real estate industry and financial institutions such as banks is very close,as economy development cannot be separated from support of real estate industry.On the other hand,to set up the principle of ‘housing is for living,not for speculation',China has been strengthening industrial regulation and control,while rarely introducing preferential tax policies.In the context of national control of housing prices,to walk on a path of healthy and sustainable development,China not only need to open source,but also to cut costs-tax planning,such as reducing tax costs while increasing corporate profits.In the recent years,there has been a comprehensive implementation of the replacement of business tax with Value Added Tax,the consolidation of state and local taxes,and the introduction of the policy of reducing taxes and fees.Tax policy has been constantly updating,meanwhile,tax collection and administration has been strengthening,which has put forward a test to tax management and planning for companies.This article takes OC project of HL real estate enterprise as an example,concentrating on applying scientific tax planning to reduce operating cost thus increase operating profit.In the detailed planning,the whole project is divided into four stages,and the product into three types.The tax status of the entire project and each link is analyzed,and the entry point that can be planned is found.Detailed planning is carried out for each stage from the initial project location selection to the final housing disposal method.Then,through the comparative analysis before and after the planning,a plan with the lowest tax burden and the largest profit is selected.At the same time,a detailed analysis of the possible risks in the tax planning process of HL real estate companies is conducted to remind companies to be aware of the risks,to formulate preventive measures in a timely manner,to balance the benefits and risks,and to ensure that the planning plan is legal and effective.