Research On The Tax Differences Of Real Estate Executing The New Revenue Standards

In recent years,Book-Tax Differences have been the focus of discussion in the financial and accounting academic circles,especially the Ministry of Finance officially released the revised Accounting Standards for Business Enterprises No.14-Revenue(The New Revenue Standards)in 2017,which promoting accounting standards of China are in line with international accounting standards,helping Chinese enterprises to go global and obtaining international capital investment.However,the relevant tax laws and regulations have not been revised according to the needs of economic development since 2009.This paper studies the real estate industry,which is the main income of land finance and the ballast stone of economic development in China.It has played an extremely important role in the process of Chinese urbanization and has an important strategic position.When the real estate enterprises enforce the The Old Revenue Standards,there is a lag in the recognition of income.The financial reports cannot reflect the real operation of the enterprise and the accounting method and tax treatment are quite different.The New Revenue Standards contribute to make the financial report more realistically and improve the quality of accounting information when a part of the income can confirm in advance by matching condition.At the same time,it will also generate the new Book-Tax Differences.Therefore,this paper focuses on the analysis of the Book-Tax Differences of real estate under The New Revenue Standards,and compares The Old Revenue Standards and tax regulations from the definition,confirmation of income,and the income tax calculation logic.The reasons of the difference between The New Revenue Standards and The Old Revenue Standards is that,the tax law has a wider range of definitions of income and special adjustments for tax deductions.Combining these two aspects,the new income standards and taxation are theoretically explained.Regulations create new tax differences due to new definitions and changes to revenue recognition conditions.Integrated impacts of two hands,we can explain the differences between The New Revenue Standards and tax regulations due to new definitions and changes to revenue recognition conditions in theory.We can learn about the changes of income tax accounting between The New Revenue Standards and The Old Revenue Standards by studying the case of H company.And then,we use that compares with the final settlement and payment of enterprise income taxes of 2017,2018 and2019 to analyzed Book-Tax Differences when company H enforce the The New Revenue Standards.Draw a conclusion,the early recognition of income by The New Revenue Standards can help reduce Book-Tax Differences during the accounting period,but cannot completely offset the impact.Finally,according to the actual situation in the operation of H company,it summarizes the problems that should be paid attention to in the process of enforce the The New Revenue Standards,such as the paper preparation of finance and contract(Collect and collate the materials of tax calculation process better,establishing tax differences ledgers and related written documents for reference)promote departmental cooperation and keep good communication with taxation departments.This paper puts forward suggestions to avoid tax risks during the enterprise enforce The New Revenue Standards.Through the research on the double impact of the The New Revenue Standards and tax regulations,this paper puts forward some suggestions for real estate enterprises to deal with the tax risks which caused by the difference between taxation and The New Revenue Standards and offer some references about enforcing The New Revenue Standards.