Research On Land Value Added Tax Planning For Real Estate Enterprises

With the continuous improvement of China’s urbanization level,the real estate industry has shown a large-scale vigorous development and its contribution to the economy has been gradually expanded.At present,the real estate industry has occupied a relatively important position and has become one of the important pillars of the national economy.Real estate development enterprises are involved in numerous and complex taxes,among which land value-added tax accounts for a relatively high amount,ranking among the top three.The tax cycle of Land Value-Added tax accompanies almost the whole process of real estate development: the tax is levied in advance during the pre-construction preparation process and remitted in the final project liquidation;the Value-Added portion of the sales revenue is taxed during the sales process;and the corresponding tax is also generated during the financing stage.It is thus clear that land value added tax can have a significant impact on the profitability of real estate development companies.Therefore,proper planning for land value added tax to reduce the overall tax cost is critical.Currently,there is a wide range of views in academia on how to define and measure tax planning,and real estate development companies have different perceptions of relevant tax policies,so the issue of how to reduce corporate costs while improving corporate tax compliance still needs to be discussed and researched.This paper takes real estate enterprises as the object of study,takes the common problems existing in the whole industry as the basis,takes W real estate enterprise as a typical case,analyzes and designs a tax planning scheme for land value-added tax according to the relevant legal regulations,analyzes the problems existing in the case enterprises as well as the real estate industry in general,and puts forward rationalized suggestions,the main framework is as follows: firstly,this paper conducts a theoretical Firstly,the theoretical basis of the study is laid down by analyzing the content of the study.Then,a specific case study of land value-added tax planning is conducted with W real estate development enterprise as the main research object.First,a brief introduction of the case enterprise is given,including its organizational structure,operation,characteristics,tax-related situation and tax liability composition,etc.;second,the problems faced by the enterprise are analyzed according to the basic situation of the enterprise,and corresponding solutions are designed for the three stages of preparation,sale and liquidation,and a comparative analysis of the proposed solutions is made,so as to propose solutions to the problems and the most suitable planning solutions for the enterprise.The solution to the problem and the most suitable planning plan for the company were proposed.Then,based on the aforementioned analysis of the existing problems of W real estate enterprises,we explore the problems that are common to most real estate enterprises and analyze the causes of these problems according to the actual situation.Finally,we propose reasonable suggestions and optimization solutions for these problems in terms of the importance and efficiency of tax planning,as well as talent training and risk control.The degree of tax planning for land value-added tax is directly related to the tax burden of real estate enterprises,while the efficiency and operational risks of real estate development projects are directly related to the land value-added tax planning process.Therefore,in the process of tax planning,real estate enterprises should actively respond to the national policy and carry out tax planning work reasonably and legally under the guidance of the policy,determine the direction of land value-added planning,and at the same time take specific measures and formulate effective tax planning plans,so as to avoid tax risks,improve the enterprise’s tax management system and optimize the way of capital operation.In this way,we can continuously improve the loopholes in the development of enterprises,reduce the hindrance to the development of enterprises caused by excessive tax burden,enhance the efficiency of capital operation of enterprises,stimulate the real estate enterprises in China to burst out new vitality and play an important advantage as a pillar industry.