The Impact Of The Replacing Business Tax With VAT For Financial Performance Of Construction Enterprise

Since China began to implement the pilot program of replacing business tax with value-added tax,there is a strong call for the comprehensive implementation of replacing business tax with value-added tax.On May 1,2016,we finally ushered in a nation-wide “Business tax reform VAT”.As an important tax reform in China,the comprehensive reform of replacing business tax with value-added tax is of vital importance to the development of tax system structure in China in the future.Since “Business tax reform VAT”policy implementation,the relevant study only grow,the implementation of it brings to the enterprise and the whole national tax,the influence of every scholar,enterprise or even the Chinese government become an important subject to be clear and discussed.As one of the three major industries in China,the development of the construction industry is related to many industries,such as: downstream real estate enterprises,cement,building materials,household appliances and so on.For construction enterprises,after the implementation of the new tax system,it will have a certain impact on the tax burden and performance of the enterprise.It is still at an uncertain stage whether enterprises can adjust their enterprise status to the tax system reform in the short term,adapt to the new policy as soon as possible and properly deal with the arrival of VAT.Therefore,it is an urgent problem for construction enterprises to take advantage of the relevant policies of the government after the comprehensive implementation of “Business tax reform VAT”.By studying and summarizing relevant theories,this paper studies the impact of the tax reform on the financial performance of the listed companies in the construction industry by taking the listed companies in the construction industry as samples.The paper makes an empirical study on the two aspects of tax burden and performance from the perspective of “Business tax reform VAT” on the financial performance of construction enterprises.The first part is the research background and significance of this paper;The second part introduces the theory of “Business tax reform VAT” and company performance,which provides the theoretical basis for the following;The third part analyzes and discusses the theoretical analysis of the development and impact of the construction enterprise after the "Business tax reform VAT" of the construction industry.The fourth part is an empirical study.This paper collates and calculates the data of 60 A-share listed companies in the construction industry from 2014 to the first half of 2017,calculates and analyzes changes in corporate tax liabilities and performance,and empirically examines the performance of selected net return on assets.Earnings per share as a proxy.In the fifth part,through the collation and analysis of the above papers,this paper presents the problems of increasing tax burden and declining performance,and proposes measures and suggestions for further improving the "business-to-business reform" of construction companies from both government and corporate levels.The last part is the conclusion and prospect of this paper.On the basis of summarizing this paper,the future research direction is proposed.