Study Of Tax Planning Of Y Company

With the developing market economy and the competitive external environment, it has become a very exigent and important issue for the real estate company, as well as other companies, to lower cost, to increase profit and to maximize value by tax planning. One of the ways to get advantage in the competition is to make the cost advantage and to maximize the fortune. The tax burden will affect the cost of the real estate companies. At the same time, most real estate companies have taken great control of other cost including the land, the construction and other accessorial costs. Therefore, the real estate companies should consider the tax factor besides the operational strategies to make profit and develop well in the competitive market. The tax planning will affect the final profit of the companies. Therefore, more and more managers are paying much attention on it.Based on systematic analysis of relative issues of tax planning, this essay takes Y company as an example. It finds out the problems of financial management and discovers the relation between these problems and its tax burden by analyzing its financial statements. According to the operational activities and basic rules and preferred policies of tax paying, it gives a comprehensive tax plan. Finally, it analyzes the tax plan by financial ratios and Do Pont Analysis Method, and shows the economical effects of tax planning.The emphasis of this paper is to help the real estate company find out the best way to lower the cost and increase the ability to make profit by tax planning, which includes making use of preferred policies, calculating and finding the best tax saving point.There are three creative characters of this paper. Firstly, it is based on tax planning theories and makes flexible use of them. It applies tax planning theories into the operating process of real estate companies. Secondly, it summarizes different methods of tax planning according to tax kinds, including sales tax, income tax, and land value added tax. And it proved the plan with real examples. Finally, it evaluates the effects of tax planning by individual financial ratios as well as financial system. After comparing nine financial ratios before and after tax planning, it verifies the conclusion and increases the stringency by Do Pont Analysis Method.