Research On The Impact Of Value-add Tax Reformation On The Financial Performance Of Real Estate Enterprise

Ranking sales revenue and net profit is a prevailing phenomenon in real estate industry,how the financial performance changed and the way to improve it gets more stakeholders' attention.Business Tax reformed to VAT is not just the change between Business Tax and VAT only,but the linkage changes anomy revenue,cost,and tax burden are also included.It‘s hard to sort out these changes.Therefore it is significant to study on the change of financial performance of real estate companies before and after this reformation,which helps firms to get out of the loss from the tax reformation,and change the state of the “passive follow” to “initiative management”.In order to study on the impact of tax reformation on real estate corporate,this paper summarizes the current situation of industry,tax burden,and its operational characteristics firstly,which helps to get its tax burden features: The real estate is the main support industry of country tax revenue,it owns some specific taxes that other industries do not own,and its taxes are closely linked and more complex.Meanwhile its tax burden features decide that more key points exist in the reformation of the whole industry,such as the segment of its taxed object,the complicacy of receipts tax,and lager linkage changes anomy different taxes.After that,this thesis establishes the calculation and analysis models of the influence of tax reformation both for previous project and present project,combining the tax reformation policy analysis and the formation of financial performance.Finally,this paper analyses the changes of financial performance of most enterprises and individuals with the industry data simulation study and case study.Based on the above research,it concluded the following empirical conclusions:(1)According to the calculation and analysis models,the increment rate of increment tax on land value is the key linkage variable to compare financial performance before and after reformation.For the previous project,the changes in amount of net profit and the total tax burden are equal,but to the opposite direction.For the present project,the changes in the net profit are related to the revenue,land cost,operating cost,and the amount of input tax deduction.The correlation between key factors is clear,but the final direction and the size is not clear.(2)Based on the industry data simulation study,the tax reformation exactly make a positive or negative difference on financial performance,but the impact is small.The positive effect of the “price change effect” is less than the negative effect of the “tax burden change effect”,so most previous projects' profit increase after the tax reformation,and the financial performance becomes better.While the present projects get the opposite result.Considering to the structure of tax burden,it contains the same situation for most previous projects.While for most present projects,the VAT burden fall to the third place,the first is business income tax,and the second is land value increment tax,the change is larger.(3)Considering to the way to improve financial performance,it is not changed after the reformation for the previous projects,which contains precision pricing,cost control and expenses saving.And for the present projects,getting more receipts tax is another route to get better financial performance.