The Impact Of "the Change From Business Tax To Value-added Tax" On The Financial Performance Of Chinese Construction Enterprises And Its Countermeasures

The change from Business Tax to Value-Added Tax(hereinafter referred to as VAT on Business Tax)is new status that the Party Central Committee,the State Council,the Ministry of Finance and the State Administration of Taxation study and make such great decision.On May 1,2016,VAT formally becomes an increasingly popular replacement and huge reform benefit is started to release.As the last industry to be included in VAT,construction business is of great significance in the improvement of the entire industry VAT deduction chain.From aspects of the listed company of construction business,the paper combed relevant study results at home and abroad and reviewed the historic progress of VAT on Business Tax.It also listed the current policies of VAT on Business Tax in the industry and explained the huge significance of VAT on Business Tax on the industry,especially the impact on financial performance of enterprises.Collect the financial data of listed construction enterprises in Shanghai and Shenzhen A share from first quarter of 2015 to second quarter of 2017.Extract four common factors from the relevant financial index with the help of factor analysis and then evaluate the weight to get the expression formula of the comprehensive performance of finance in the listed company.Through descriptive analysis,correlation analysis and regression analysis,empirical studies from the three aspects have been carried out,including implementation of VAT on Business Tax policies,changes in the actual tax rate of the transfer tax and change of the deductible income tax ratio to form model one and model two to have progressive exploration.Robustness test has been made on the empirical study results with the combination of analytic hierarchy process and entropy weight method to get conformance conclusion.Taking Lawton Development Co.,Ltd.as an example to analysis the following changes in enterprise actual tax rate,deductible input ratio and deductible item since the VAT on Business Tax.Besides,there are groups and comprehensive analysis.In the end of the paper,there is targeted suggestions and advices from enjoying dividend policy,reducing production costs and changing operation mode.It hopes to provide evidence for construction business to enjoy reform dividend,to regulate the operation management and improve economy profit.