The Compact And Countermeasure For Construction Industry Business Tax Change To VAT Of RT Engineering Group Limited Company

In accordance with the overall layout of the national tax system reform, the business tax levy VAT since 2012 from the pilot areas and industry gradually began to promotion so far, is expected in 2015 including the construction industry, the whole industry to implement, the business tax upcoming stage of history. Because of the difference between the value added tax and business tax, the reform will bring a huge revolutionary transform and impact to the construction industry rather than only the changes of tax issues. The study object of this article- RT Engineering Group Co., Ltd(hereinafter referred to RTG). is a very representative of the large construction enterprises. The study of impact analysis and the solutions by the RTG’s facing the reform program named to replace the business tax with a value-added tax(hereinafter referred to as BT TO VAT), has not only a very important practical significance, but also bring a definite reference value to the other enterprises of construction industry.This article is divided into five parts. Part I has analyzed both conceptions of business tax and value-added tax and their development history. Meanwhile, it also states the research methods, framework and the contents. Part II has made a collection of the relative polices and regulations of China’s BT to VAT-program. Part III has detailedly introduced that how the RT group organized its subordinate units to execute the BT TO VAT’s operations simulation work. The part IV has combined with the test results of comparative analysis of the simulation run, "influence in many aspects of the BT TO VAT program" may be caused by the RT group’s direct tax burden and enterprise management. Part 5 has tabled proposals detailedly basic on the RTG how to adapt a new tax policy after BT TO VAT, which requires new management changes, and how to deal with possible "negative effect to BT TO VAT" to minimize the problems.The consequence and conclusions of this article are: More potential negative influence will be caused to the RTG once by the executing of BT TO VAT. But at the same time, this paper further studies the analysis that the camp changed to increase the whole construction industry and the major changes in the downstream industry, the crisis contains opportunities, such as the full play of the RT group’s competitive advantage, seize the opportunity, the camp changed to increase is precisely a rare opportunity for development of RT group..