Research On The Problem Of VAT Tax Planning For Construction Enterprises

Under market economy,enterprise commonly seek to maximize their profit,lower the operating cost can help enterprises keep their advantage,stay competitive,and maintain a good operative level.Tax planning can significantly reduce the tax burden of enterprise.Replacing business tax with value-added tax is the major system reform that occurred during the 12 th 5 year plan.The purpose of replacing business tax with value added tax is to avoid duplicate taxation,reduce the tax burden,improve business process,and attract market capital;which has enormous impact on economy restructure and reorganize.Moreover,replacing business tax with value added tax is a reform that reduce taxation,which can stimulate the economy and attract more market capital and investment.Replacing business tax with value-added tax fundamentally solve the issue that the construction industry being taxed multiple time.Enforcement of replacing business tax with value added tax will lower the tax burden that enterprise has in the past,but lack of invoice of value added tax prevent enterprise from receiving tax deduction.This article tend to address the difficulties occurred in the construction industry during the process of replacing business tax with value added tax,and provide reasonable tax planning suggestion base on the economy conditions.During the replacement process,construction industry need to proactively adjust their strategies in accordance to new policy,and fully understand underlying policy;thus they can promptly respond to new policy and take proper tax planning strategies to help company grows steadily.The article first illustrate current situation and back ground of tax planning,and analysis relevant tax code and principle in shallow manage.To analysis the tax planning in construction industry,this article take a deep view into not only the characteristics of operating cycle,production cycle in the construction industry;but also the tax related indicators,policies,and relevant regulations.Moreover,in order to provide improvising suggestions on tax planning in construction industry,this article use the case to illustrate the their tax planning strategies that enable the company to gain favorable tax advantage.