Research On Land Appreciation Tax Planning For C Real Estate Company

In recent years,due to the overheated development of the real estate industry,the state has stepped up the macroeconomic regulation and control,to stabilize the real estate market.And all of these narrow the space for real estate companies to survive.So reducing the cost has become an important factor for real estate companies.The land value-added tax is a kind of tax levied on the value-added amount obtained during the transfer of state-owned land use rights and above-ground buildings.It adopts a four-level progressive tax rate,which leads to the heavy tax burden on companies.It is one of the most important types of tax for real estate companies,accounting for more than 20%of the tax revenue of the real estate industry.Therefore,the reasonable control of land value-added tax is one of the key points for real estate companies to reduce operating costs.However,for C Company,land value-added tax accounts for a big part of the cost expenditure,as its tax revenue has increased year after year,and tax burden rate is much higher than that of the same industry.But in this case,C Company has still not put it on the agenda,and did not carry out corresponding Tax planning,for reasonable control of land value-added tax.In this paper,based on the analysis of the status quo and existing problems of C Company,as well as the latest taxation policy,we propose a practical land value-added tax plan for D project.In this planning scheme,many important methods are adopted,such as the use of interest expenses and taxation preferential policies.In the end,we make comparison between the economic benefits after planning and the one before,where the principle of maximizing after-tax profits will be used to test the success of the planning scheme.In addition,this study also considers risk factors such as political risks and legal risks,and proposes prevention measures to increase the feasibility of the planning program.After the successful implementation of the land value-added tax planning program,it will bring considerable economic benefits to C Company.What's more,once the plan is successful,it will provide reference value for other companies especially medium and small ones in the real estate industry.