Research On The Tax Regulation Effect On Enterprises’ Housing Related Investment

At present,there is downward pressure on the real economy,and many non-real estate enterprises(hereafter NRE for short)use a large amount of capital to hoard real estate.This phenomenon of "from real to virtual economy" is detrimental to the long-term development potential of the real economy.In 2010,the State Council issued the "No.10 National Notice",which restricted NREs’ involvement in the real estate sector.This excessive hoarding of real estate can bypass the restrictions of diversification of real estate,and in form,it is not easily distinguishable from the normal production and operation needs of the purchase and construction of plants and office buildings,thus causing difficulties in the operability of administrative regulation which needs subjective screening and restriction.But there are still a large number of enterprises investing in real estate in order to obtain high returns.Based on the above background,this paper reviews domestic and foreign literature,defines the concept of NREs and their housing related investment and analyzes the mechanism of tax regulation effect on the investment.The actual analysis part shows the current situation of enterprises’ housing related investment,as well as the deed tax of real estate purchasing,the property tax and the urban land use tax of holding,and the land value-added tax of transferring.In the empirical analysis part,based on tax survey data and listed company data,this study examines the effect of tax burden on the real estate investment behavior of NREs in three links above.We have the following conclusion: first,because the intensity of taxation is fixed,the deed tax on purchasing has no significant impact,and in the long term the real estate deduction policy of "Replacing Business Tax with VAT" on May1,2016 has no significant impact either.Second,because real tax and urban land using tax base do not have something with the market value of real estate,which shows a regressive character,they can not restrain the real estate investment of enterprises.Third,land value-added tax is levied against the value-added,and the intensity of taxation is relatively large,so it can effectively curb the investment in housing.In particular,the suppression effect is more significant on non-state-owned enterprises and in period of house prices rising.In the international experience reference part,this paper summarizes the experience of tax system design in real estate purchasing,holding and transferring in various countries Based on the empirical analysis and comparative analysis of international experience,this study puts forward a series of policy proposals,such as levying high rate deed tax on real estate purchased by enterprises for speculative purposes,choosing the assessed value as real tax and urban land using tax base,increasing regulation of land value-added tax.This study has important reference value for the long-term mechanism construction of real estate market.