Research On The Impact Of "Replacing Business Tax With VAT" On The Value Evaluation Of Real Estate Enterprises

Since our country adopted the policy of reform and opening up,the rapid development of China's economy is almost a new year.However,our country's taxation system that has been stagnant has become an embarrassment for China's economy to “go further”,and the drawbacks of repeated taxation of business tax have gradually become a "stumbling block" for the further development of China's economy.In 2012,China began to implement the taxation reform for changing business tax to value-added tax.As of December 2017,various industries including the real estate industry have fully implemented the reform of the taxation system for changing business tax to value-added tax.Since the beginning of the 21 st century,the rapid development of China's real estate industry has gradually become a leading industry that determines the development of the national economy.The real estate industry is the last batch of tax reforms to implement the "replacing business tax with VAT".Since 2016,the "reformation reforms" have covered the real estate industry for only a short period of two years.The short time determines that the "replacing business tax with VAT" will surely increase the value of real estate companies.Assessments bring challenges that cannot be ignored.Under this background,this article uses the FCFF model to deeply study the changes in the free cash flow of real estate companies before and after the "replacing business tax with VAT",and then focuses on analyzing the conduction path of the "replacing business tax with VAT" to the free cash flow of the real estate company.Analyze and compare the appraisal value of the case before and after the "replacing business tax with VAT",and come to the conclusion of this paper that the "replacing business tax with VAT" has effectively reduced the tax burden on the real estate companies,improved the free cash flow of the real estate companies,and improved the real estate.Business valuation.The main contributions of this paper are as follows: First,combining the related theories of the new tax policy on the impact of corporate valuation on economics,finance,and other related theories,the paper analyzes and analyzes the conduction path of the "replacing business tax with VAT" to evaluate the value of real estate companies;By analyzing and comparing the changes in free cash flow of real estate companies before and after the "replacing business tax with VAT",the relevant parameters such as the discount rate should be reasonably revised;and thirdly,through comparative analysis of the valuation value of real estate companies before and after "replacing business tax with VAT",this paper concludes that the conclusions of the study and related policy recommendations for real estate companies,appraisal practitioners,and the government department.