Research On The Impact Of Tax And Fee Reduction Policies On The Performance Of Real Estate Companies

At the beginning of 2018,the policy to cut taxes and fees on a scale of more than one trillion yuan was confirmed for the first time according to the Report on the Work of the Government.Afterwards,the State Council and relevant ministries formulated additional policies.On September 20 th,the State Administration of Taxation(SAT)formulated new regulations which requested that the fulfillment of pertinent policies were expected to be realized at all levels of tax authorities so as to optimize the tax and business climate,reduce the tax load on enterprises and energize the main players in the market.Owing to the implementation of the policies over the two years,statistics show that the economy has been stable as a whole and its structure adjustments have push forward steadily.Furthermore,emerging industries have witnessed its rapid and continuous development.With its substantial contributions to the national economy,the policy has benefited various industries.However,it is still uncertain whether or not there is a positive correlation between the policies and industries’ performances,which means that further research is required.And since the real estate is the economic mainstay of the national economy,the research on correlation between the policies and the real estate’s performance may partly show how these policies exert influence on other industries’ performances,laying the groundwork for further research into the whole national economy.Taking Vanke’(a leading company in China’s real estate)financial statements over a period of ten years as a case,the thesis adopts Financial Indicators Analysis and Du Pont Analysis to analyze relevant indicators in these statements and figure out how these policies have influence on the performance of real estate,thus providing a possible way to evaluate the effects of these policies and serving as an academic reference point.