The Financial Impact Of Replacing Business Taxes With Estate Development Enterprises

For a long time,the tax system of coexistence of value-added tax and business tax has not only increased the tax burden of enterprises but also hindered the optimization and upgrading of industrial structure.In 2012,China started the pilot reform of the tax system to replace business tax with value-added tax.In order to expand the scope of the pilot program and abolish the business tax system,the real estate industry began to implement the "replacing business tax with value-added tax" on May 1,2016,and the whole industry in China implemented the VAT tax system.However,in the early stage of tax reform,the rising tax burden,the decline in financial performance,and the adjustment of macroeconomic policies brought great challenges to real estate development enterprises.Therefore,it is necessary to study the financial impact of tax reform in this context.Poly real estate,as a listed central enterprise,takes real estate development and operation as its main business,which is the key case study object of this paper.Firstly,this paper theoretically elaborates the financial impact of replacing business tax with VAT on real estate development enterprises,including the changes in tax burden,financial performance and operation management.Then,the case of poly real estate is introduced to verify the above financial impact based on its financial data and changes in business conditions from 2014 to 2018.When analyzing poly real estate's financial performance before and after replacing the business tax with a value-added tax,this paper starts from the dupont analysis system and analyzes in detail the changes in its profitability,operating capacity and debt paying ability before and after the tax reform and the reasons.On the analysis of the operation ability,in this paper,considering the2017 a second-tier cities to implement "room not fry" "five" limit "for city ShiCe" macro policies,and three or four line city always keep "inventory" of macro policy,sothis article in three or four line city poly real estate financial data to calculate the total asset turnover ratio to reflect the change of the before and after the tax reform,throw in addition to not consider the macro factors change not the calculation results of purity.Finally,the article provides effective Suggestions and countermeasures for real estate development enterprises to better cope with the "replacing the business tax with a value-added tax",so that enterprises can enjoy the benefits of tax reform.