| Value added tax(VAT) Reformation is an important task of the fiscal and taxation system reform in China. It has a significant impact on industry tax, economic development, industrial structure and some other aspects. As a pillar industry of China’s economy, the real estate industry not only contributes to economic growth directly, but also has strong correlation effects on driving the development of other industries. According to program for the 2016 in National Financial Work Conference, VAT Reformation will be fully implemented.And the real estate industry will be included in the pilot range. The change of tax system will have a great influence on all aspects of real estate enterprises. Based on this background, the research of financial impact of VAT reformation on real estate enterprises before tax reform will be significant for both theory and practice.This paper makes a contrastive analysis of business tax and VAT tax. According to the related documents, the pilot policies are analyzed by the method of analytical induction. On this basis and from the angle of financial statements, indicators and financial management, the thesis analyzes the tax reform effect on real estate enterprises. In the effect analysis of financial statements and their indicators, a qualitative analysis of three major reports is made. To reflect enterprise’s operating results, a quantitative analysis of income statement indicators is made. To analyze the effect on net profit and tax deduced, the calculation formulas of tax reform are deduced. And it is used to estimate the percentage of deductible costs in real estate enterprise combining the specific data of a real estate development project.Finally, based on the basic operating data of the 55 listed real estate enterprises in 2014, and in accordance with land costs can be deducted or not, the change of net profit and tax before and after reform are calculated respectively. In the effect analysis of financial management, this thesis makes a detailed analysis of the reform effect on four aspects, which are corporate accounting, capital management, assets management and taxation management.According to the above analysis, some conclusions are obtained. Firstly, VAT tax is the tax out of price, so real estate enterprise’s book value of assets will reduce after tax reform. Secondly, the actual operating income will decline in the case of prices unchanged. Thirdly, the cost and expenses will increase under the influence of tax shifting, which come from upstream industry’s VAT reformation, eventually, lead to the changes of net profit and tax. Forthly, due to the characteristic of real estate enterprise’s development and management, tax reform will lead to increased cash outflow. Besides, through a combination of case studies and empirical analysis, when real estate enterprise’s VAT rate is 11%, the deductible cost ratio is 48.10%. If the land cost cannot be deducted, and then overall tax of enterprise after reform will clearly rise, net profit will decrease. And if the land cost can be deducted at the ratio of 11%, the overall taxes of enterprise after reform will basically unchange, net profit will increase. Based on the results of a comprehensive analysis, this thesis makes some policy recommendations for VAT reformation, and points out some coping strategies for real estate enterprises. |
