TITLE:
Effects and Countermeasures of “Replacing Business Tax with VAT” to Real Estate Industry
AUTHORS:
Fang Zhou
KEYWORDS:
Replacing Business Tax with VAT, Real Estate Industry, Tax Burden
JOURNAL NAME:
Modern Economy,
Vol.7 No.5,
May
18,
2016
ABSTRACT: As an important measure
to deepen reform of the fiscal and taxation systems, “replacing business tax with
Added-Value Tax (VAT)” pilot will be carried out in all industry across our country
on 1st May 2016, the goal of the tax reformation is to have the Added-Value
Tax (VAT) completely replace business tax, and to effectively avoid multiple taxation.
The real estate industry, known as the foundation of national economy, will be greatly
affected by the tax reformation. This paper discusses the impact of “replacing business
tax with VAT” on the real estate industry’s tax burden, cost, house price, profit
and cash flow. Finally, some suggestions on how to deal with tax reformation for
the real estate industry are put forward.