The Influence And Countermeasures Of Replacing Business Tax To VAT On YJ Construction Company

The policies to cut taxes and fees are a key measure adopted by the Chinese government to promote economic development in recent years." Replacing business tax with value-added tax",as an important embodiment of tax and fee reduction policies,has been implemented in the construction industry for three years since May 1,2016.The construction industry is an important part of China’ s economic system.When faced with a complicated and volatile market environment at this stage,construction companies are in urgent need of analyzing and solving their own problems in the post-“replacing business tax with value-added tax" era.This thesis takes YJ construction company as the object of study,analyzes the current status of construction enterprises after " replacing business tax with value-added ta",and proposes improvement strategies to the problems existing in the management of construction enterprises and risks that they may face in the future.Firstly,the thesis makes a summary of the research results of business tax and value-added tax both at home and abroad.Then,it clarifies the concepts of business tax and value-added tax,together with some concepts and policies in the construction industry.After this,it makes an introduction to the theories used in the thesis.Taking YJ Construction Company as the object of study,the thesis,through an analysis of the company’ s financial indicators and project financial indicators,has summarized the impact of " replacing business tax with value-added tax" on construction enterprises and the present operating status of construction enterprises under the value-added tax system,and it has discovered the existing management problems and potential risks of construction companies.Based on the realities of the projects,the thesis establishes a data model to calculate the possible impact of policy-oriented tax rate adjustment on the construction enterprise,and it also suggests corresponding management strategies.The improvement suggestions are proposed from the perspective of financial management,mainly in the three aspects of cash flow management,cost management,and tax planning management.Besides,corresponding system guarantees are also made.Based on an analysis of the actual business data of the construction company under the value-added tax policy,the thesis has gotten the following research results:the tax-bearing ratio of engineering projects has gone up a lot after " replacing business tax with value-added tax".However,the tax-bearing rate of the construction company is basically the same as that under the business tax;the increase in the project tax-bearing rate will exert greater pressure on the cash flow of construction companies,but it will not have a great impact on the project profit rate.Through an analysis of the data model,it has found that construction companies,faced with potential tax rate adjustment policies,will have a lot of uncertainties.And it depends on the management and negotiation ability of construction companies to enjoy the policy dividends of tax adjustment.The thesis proposes suggestions for construction companies in terms of their management and negotiation directions in tax adjustment,and it proposes suggestions for optimizing their management from the aspects of cash flow management,cost control management,and tax planning management.