The Study On Tax Planning Of By Airport VAT

The tax system reform of “replacing the business tax with a value-added tax” is an important decision made by the Party Central Committee and the State Council based on the new circumstances of social and economic development as well as the request on the overall arrangements of deepening reform.The purposes are to accelerate the reforms of fiscal and taxation systems,further reduce corporate taxes,mobilize the enthusiasm of all parties,promote the development of service industry,especially technology and other high-end services,stimulate industrial and consuming upgrading,cultivate new driving force,and deepen the structural reform of supply and demand.The experimental work of replacing business tax with value-added tax started from Shanghai and gradually expanded to all industries throughout the country since January,2016.This paper takes BY Airport,one of the three key airports in China,as research object.BY Airport was brought into the experimental work of replacing business tax with value-added tax of Guangdong from November,2012.The income which was originally belonged to transportation industry under the scope of business tax was taken as income in modern service industry under the scope of value-added tax through the reform.Later on,all income was covered with the expansion of the experimental scope of replacing business tax with value-added tax.Before and during the implementation of this policy,BY Airport actively engaged in the preparation and research,participated in the follow-up survey organized by the State Administration of Taxation of Guangdong Provincial Office and Bureau of Finance of Guangzhou Municipality,feedback problems encountered during the implementation process of replacing business tax with value-added tax in Guangdong,and involved in the discussion of solutions.This paper had conducted a detailed and objective comparative analysis of the change of industry assignments,tax type,tax rate and turnover tax burden before and after the implementation of replacing business tax with value-added tax of BY Airport.It reviewed the tax planning that could be carried out under the tax system reform of replacing business tax with value-added tax for special service industry like airport and put forward concrete,feasible and legal proposals.It also pointed out the tax risks which need attention and avoidance measures,assessed the effectiveness of tax planning proposals of value-added tax and hopefully could provide some references of value-added tax planning for other domestic airports.