Research On Tax Planning Of Land Value-added Tax In Z Compan

The report on the work of the government mentioned that " We will better address people's housing needs,require local governments to shoulder primary responsibility,reform and improve housing market and support systems,and sustain the steady and healthy development of real estate markets." The macroeconomic regulation had been stepped up,and restrictions on the purchase and sale of real estate were introduced.And all of these narrowed the space to survive,so companies had been paid more and more attentions on tax planning.Z Company is a traditional real estate company.Its land appreciation tax had increased year after year,and the tax burden was higher than the average.In the past two years,due to the increasing land costs,tightening bank loans,rising labor costs and other external factors,the company needed to increase revenue,reduce expenditure,to improve corporate profitability and market competitiveness.The company decided to analyze some factors,which had been neglected,especially taxation.The land appreciation tax is a kind of tax levied on the appreciation part during the transfer of housing,buildings and state-owned land use rights.It adopts a progressive tax rate ranged from 30% to 60%.Due to the high tax rate,the tax burden is relatively heavy,and led it to be one of the main taxes of Z Company.In recent years,the State Administration of Taxation had tightened the management of land appreciation tax.The construction of taxation systems had been improved.Different government departments also had increased sharing information.So reasonable tax planning and reducing the amount of land appreciation tax,became an important means for Z Company to reduce costs and increase efficiency.In this paper,based on the analysis of problems of HY project,we proposed a practical land appreciation tax plan.Under the basic framework of the laws,policies and local regulations,the plan focused on sales price,floor space,public instruments cost,interest expenses and cost dividing.We used tax burden change,profit change,planning risk,planning difficulty as the test of the economic benefits of the planning.In the end,this paper also provided some solutions to enhance the awareness of risk prevention and improve the ability of risk response.