Tax Planning Of Zhong He Construction Company Based On "Business Tax Instead Of VAT" Policy

On March 5,2018,Premier Li Keqiang of the State Council mentioned in the government's work report for the new year that China has gradually pushed the camp to increase and ended the 66-year business tax collection history,with a cumulative tax cut of more than 2 trillion yuan.The implementation of the policy of "Business Tax instead of VAT" has brought great opportunities and severe challenges to the construction industry as the National economic base and pillar.This paper takes Zhonghe Construction Company as the research object,takes its tax planning as the research content,and on the basis of combing out the current research situation at home and abroad,and combining the knowledge of financial management and taxation adopts the method of factor analysis,visit and investigation,and establishes a mathematical model.Optimize the design of the tax planning for Zhonghe Construction Company.First of all,the paper analyzes the current tax situation of Zhonghe Construction Company,draws the conclusion that the tax burden of Zhonghe Construction Company is reduced,and analyzes the positive impact of "Business Tax instead of VAT" on the tax implications of Zhonghe Construction Company and the problems that still exist.The positive effects include:providing more tax planning space for enterprises;Facilitated the regulatory management of suppliers/subcontractors;Promote the upgrading of enterprises and their equipment;Promoting the optimization of enterprise management at the decision-making level,the remaining problems include:insufficient deduction of input tax amount;The impact of labor costs is greater;Increased tax administration costs;The pressure of enterprise capital becomes bigger and so on,and the reasons for these problems are analyzed.Secondly,through the establishment of mathematical models and the use of case studies,we have obtained tax planning plans for Zhonghe Construction Company,including:separately accounting for different tax rates,rationally allocating business prices for different tax rates,and selecting general taxpayers as suppliers.The pricing equilibrium method is used to select small-scale taxpayers or other individuals who have a lower cost ratio than the tax burden as suppliers,and reasonably choose to use the "one-ticket system" or"two-ticket system" to strengthen the management and transmission of enterprise bills and use the completion percentage method to pay the construction party's project funds.Contract for contracted materials and contract with supplier for distribution.Then,the selection and effectiveness of the scheme are evaluated.Finally,in order to ensure the smooth implementation of the tax planning plan,safeguards are put forward,including strengthening the understanding of tax planning risks,increasing tax training for personnel,strengthening the internal control of corporate taxation,and using the Internet+to establish a risk monitoring system.Through the research of this article,the tax planning plan for Zhonghe Construction Company in the context of "Business Tax instead of VAT" is the most beneficial to the development and interests of the enterprise.At the same time,the research of this paper can provide reference for the tax planning of enterprises in the same industry under the background of "change and increase".