Study On Tax Planning Of Power Construction Enterprises After "Replacing Business Tax With Value-added Tax"

As the basic industry to support and guarantee the national economic and social development,the power industry is vital to the electricity safety of thousands of households.Electric power construction enterprise is an important component of China’s construction industry,related to the development of power grid construction and development and smooth running,with a considerable position.From May 1,2016,the pilot project of “the Change from Business Tax to Value-Added Tax” was fully implemented,including power construction enterprises.As the management and business personnel of the enterprise did not pay enough attention to the implementation of the policy of replacing business tax with value-added tax,nor did they fully grasp the tax policy in the actual business operation,and in addition,power construction enterprises have the characteristics of long upstream and downstream business chain,extensive management,"material supplied by Party A" for "principal industry" project,as well as low self-construction rate and high subcontracting rate,etc.,after the implementation of "the Change from Business Tax to Value-Added Tax",the influence of power construction enterprises is particularly significant,with the tax burden rising,profit decreasing and cash flow tight and other phenomenons.At this time,power construction enterprises not only need to quickly adapt to the change of revenue policy,but also to cope with the pressure of increasing tax burden and decreasing profit space.In this circumstances,the scientific development of tax planning,tax burden and operating cost reduction seems particularly important.In terms of this case,starting from the actual situation of electric power construction enterprises,the change of enterprise tax burden and influencing factors after replacing business tax with value-added tax are taken as the entry point,this article reveals the deep problems in business process and tax management of the enterprise,combs the key business processes,clarifies thoughts,designs tax planning scheme scientifically,and initially establishes an effective tax planning management model,to make beneficial theoretical exploration and practical attempt for electric power construction enterprises to reduce tax burden,prevent risks and improve management level.First of all,this paper introduces the situation faced by power construction enterprises and the significance of tax planning after the implementation of "the Change from Business Tax to Value-Added Tax".Based on the in-depth study of the research achievements of domestic and foreign scholars,this paper makes a detailed analysis of the impact of "the Change from Business Tax to Value-Added Tax" on the tax burden of electric power construction enterprises and the reasons,as well as the methods of tax planning,and combined with the features of China’s electric power construction enterprises,proposes the research content,methods and innovation points.Secondly,this paper introduces the concept and characteristics of "the Change from Business Tax to Value-Added Tax" and tax planning,the main theoretical basis of tax planning:contract theory,game theory,and systems theory,as well as several methods of tax planning implementation,which provides theoretical support for the research of tax planning after "the Change from Business Tax to Value-Added Tax" for electric power construction enterprises.On this basis,the DY Power Engineering Company,for example,a comparative analysis is made on the business operation and tax burden of the company in the three years before and after the implementation of replacing business tax with value-added tax,the tax burden of enterprises under the ideal situation is estimated,and the primary influence factors of tax change,tax management problems of the enterprise after "the Change from Business Tax to Value-Added Tax" are analyzed accordingly,which lays a foundation for design of tax planning scheme.Then a complete engineering project of power construction enterprise is analyzed from beginning to end,and five critical business control nodes that affect the effect of tax planning are sorted out,namely project bidding,contract signing,material purchase,project settlement and tax management.Moreover,DY Power Engineering Company is taken as an example to scientifically design the tax planning scheme from five key business processes.Finally,this paper analyzes the desired effect of the tax planning scheme and puts forward the safeguard measures for its implementation.This paper combines the business and operational characteristics of power construction enterprises,taking DY Power Engineering Company as a practical case,starting with the key business treatment that affects tax burden,explores the design of taxplanning scheme,to give a complete description of the entry point,planning method,expected effect and safeguard measures for power construction enterprises to carry out tax planning.From the results,the application of tax planning method reduces the DY Power Engineering Company’s tax bearing,improves the ability of the business process and management level,and provides a systemic and scientific train of thought for the electric power construction enterprise to conduct the tax planning,which has some practical significance.It is hoped that some practices and explorations in this paper can offer beneficial references for power construction enterprises or construction enterprises.