Analysis Of The Influencing Factors Of Land Value-added Tax On Real Estate Development Projects And Tax Planning

Since China began its housing reform in 1998,the real estate sector has been thriving,and gradually becomes a pillar industry of the country.However,since 2021,China’s real estate industry has been declining amid a grim economic landscape at home and abroad.A number of large housing developers have been struggling to survive,such as Evergrande,Sunac,and Country Garden.As the recession looms around,enterprises hope to increase the time value of funds and revitalize production and operation by saving tax costs.Tax planning is a key method for enterprises to minimize tax costs.Land value-added tax,a special tax type for developers,accounts for one-third of their total tax burden.Therefore,effective land value-added tax planning can help enterprises significantly save costs.This dissertation uses the analytic hierarchy process(AHP)to establish the index system of land value-added tax influencing factors,calculates the weight of various factors,focuses on the most important influencing factors and links for land value-added tax,and provides guidance for relevant tax planning.This dissertation mainly includes the following sections:(1)Establishing the index system of land value-added tax influencing factors.Based on the calculation elements of land value-added tax stipulated in the Provisional Regulations on Land Value-Added Tax of the People’s Republic of China and its implementation requirements,the author obtained various factors affecting land value-added tax through literature research and expert interviews.We also invited experts in the real estate industry to complete an online questionnaire survey on the above factors,identified the important influencing factors of land value-added tax through the Delphi method and the Pareto principle,and finally built the index system.(2)Analyzing the importance of land value-added tax influencing factors through the analytical hierarchy process.The author established a judgment matrix,calculated the weight of each factor by the sum product method,and performed the consistency test to rank the importance of influencing factors.(3)Analyzing and identifying the factors that affect the land value-added tax amount of the project J with the land value-added tax settlement case as an example,explored the deepseated factors influencing the project J,we confirmed the ranking of the land value-added tax influencing factors by importance through the analytic hierarchy process.(4)Hypothesizing the tax planning of project J.The author compared the tax amount before and after the tax planning of project J,highlighted the importance of directional and targeted tax planning to tax reduction,and finally offered some suggestions on land value-added tax planning.