Research On The Influence Of "Replacing Business Tax With Value Added Tax" On The Tax Burden Of Construction Industry And Tax Planning

At present,the downward pressure of China's economy is large,and the tax burden of enterprises is heavy,which seriously affects the vitality of enterprises.The influence of fiscal and tax policies on economic development cannot be underestimated,which is one of the important means to regulate and control economy in China.“Replacing business tax with value-added tax” is another major tax system reform in China after the reform of tax distribution system.The purpose of this reform is to eliminate the double taxation,reduce the tax burden of enterprises,stimulate the vitality of enterprises,and promote the stable development of China's economy.On May 1,2016,China launched “Replacing business tax with value-added tax” in an all-round way.Services in building were included in the incidence of taxation of value-added tax.Construction industry is an important pillar industry in China,which can promote urbanization,increase employment rate and promote economic development.Improving the vitality of the construction industry is of great significance for promoting the economic and social development of our country.In this tax reform,does the construction industry enjoy the dividend of reform? Has the tax burden on enterprises been reduced? How can the construction industry benefit from "replacing business tax with value-added tax" ? Based on the above problems,the author uses empirical analysis and case analysis to analyze the effect of the policy on the construction industry and individual enterprises,and puts forward tax planning suggestions to provide planning ideas for the construction industry to reduce the tax burden.First of all,by studying the relevant literature of scholars at home and abroad,the author combs the relevant theories of value-added tax and business tax,“business to value-added” and tax planning of scholars at home and abroad.Based on this,the author theoretically analyzes and calculates the tax burden of the construction industryand puts forward research hypotheses.Secondly,the author uses the annual financial data of 57 listed construction companies in 2012-2018,introduces the fixed effect model and the random effect model to analyze the total tax burden of the construction industry,and analyzes the changes of turnover tax,urban construction tax,education surtax and corporate income tax respectively from the structure of corporate tax burden.The empirical results show that “replacing business tax with value-added tax”reduces the overall tax burden of the construction industry,but the reduction is small and the policy effect is not good.From the perspective of tax burden structure,turnover tax,urban construction tax and education surtax have been reduced,and passed the significance test,corporate income tax has been reduced but the result is not significant.The author thinks that the tax burden of enterprise income tax will not change or even increase after “business tax replaced by value-added tax”,which is related to the reduction of urban construction tax and education surcharges.Although the burden of turnover tax and additional tax is reduced,the enterprise income tax may increase,This may be the reason why this policy does not significantly reduce the tax burden of the construction industry In view of this problem,the author has carried on the tax planning of value-added tax,additional tax and enterprise income tax to provide ideas for the construction industry to effectively reduce the tax burden.Finally,the author introduces a case study of an unlisted construction enterprise to analyze the tax burden changes before and after the “business tax to value-added”,and the results show that the tax burden of the enterprise may increase after the“business tax to value-added”.Accordingly,the author designs the tax planning scheme for the enterprise.In order to reduce the tax burden of enterprises and promote the smooth operation of China's economy,some suggestions are put forward.