The 5 Major Financial Strategy Is To Reduce The Burden And Save Money For Construction Enterprises.

After the implementation of "camp to increase" in construction enterprises, the amount of tax deductible can directly determine the value added tax of enterprises. Only by obtaining the invoices that conform to the prescribed input tax can we achieve the purpose of tax deduction.

Raw material procurement and project subcontracting are two important sources of input tax for construction enterprises. Therefore, selecting appropriate materials suppliers and sub contractors, strengthening management of them, and strictly controlling the source of input tax are important issues for construction enterprises.

For a long time, due to the low management level and imperfect rules and regulations of construction enterprises in China, the material suppliers and subcontractors have not been effectively supervised and controlled. Almost every construction company's partners have a large number of small and medium enterprises and Private Companies.

A considerable part of the suppliers and subcontractors do not have the qualification of the general taxpayer. This situation causes considerable difficulties for the deduction of value-added tax after reform, and can not reduce the tax burden level of enterprises.

The "camp to increase" to the construction enterprises to strengthen control and management of suppliers and sub contractors opportunities.

Construction enterprises should seize this opportunity firmly, improve their own management and supervision system for suppliers and subcontractors, improve their management level, conduct a thorough and detailed screening of suppliers and subcontractors, resolutely remove unqualified conditions, and reduce large and medium sized suppliers subcontractors as well as large enterprises with strong and reputable abilities as partners in order to obtain compliance tax.

Provide effective protection.

In addition, because many construction projects in sparsely populated areas, construction enterprises often take the way of purchasing raw materials from local people nearby, which saves part of the cost on the surface. However, it causes the situation that the VAT can not be deducted, and the quality of raw materials can not be guaranteed.

Therefore, in order to avoid such a situation, construction enterprises can report to the relevant government departments on this issue, strive for policy support, and cooperate with other enterprises, establish a sound industry rules and regulations, find ways to solve the problems, eliminate such problems, really implement the tax reduction purpose of the government's "camp to increase", and ensure the healthy development of the industry.

In addition, at present, the construction enterprises in China are generally affiliated with the operation. Many small and medium-sized units are affiliated to large construction enterprises.

Although this has some positive significance, the problems raised can not be ignored.

For example, these small and medium-sized enterprises are relatively weak in their management work due to their own size constraints, and the level of relevant financial personnel is relatively low. They do not understand the VAT invoice identification, management and use very well, and may even cause losses to enterprises.

Therefore, after the "camp changed to increase", construction enterprises should clean up subordinate affiliated units, educate and train relevant financial personnel, strengthen legal awareness and improve their professional capabilities.

Under the conditions permit, it is better to implement unified tax assistance and planning to minimize the tax risk of affiliated units.

(1) contract with Party A as far as possible.

When a business is changed to a contract with the first party, the contract should be signed as much as possible, so as to reduce the contract mode.

This is because most of the input tax of construction enterprises comes from the deductible ratio of materials and materials, which is also the highest (17% of the input tax rate). Only by signing as many contracts as the contract of labor contract, can the amount of tax deductible be increased, thus lowering the overall tax burden level of enterprises.

On the contrary, if the contract is "contract for cleaning workers", then the material is.

Party A will directly sell materials to Party A and issue the VAT invoice issued by Party A, and then Party A will provide material to the construction enterprise. The construction enterprises will not be able to get the chance to deduct the tax amount.

For construction enterprises, only part of the cost of machinery usage and other direct expenses is left to the construction enterprises. The cost of construction enterprises is relatively small and the deductible part is less.

Taking the railway communication construction project contracted by XX engineering company as an example, this paper analyzes the changes of tax burden under the two circumstances of "contract work package" and "package cleaning job".

From the above table, we can see very clearly that when the contract contract is changed from the mode of "contract work to material package" to "package cleaning workers", the value-added tax increased by 499 thousand and 60 yuan, and the proportion increased to 16.40%.

The purpose of the project contracting enterprise (Party A) is to use the materials supplied by a supplier, so as to avoid the construction enterprises (b) arbitrarily raising the price, saving material costs, and ensuring the quality of materials and projects.

However, the construction mode of "package cleaning" will only increase the tax burden and reduce the profit of the enterprise after the change of the camp. Then Party B will take some measures to offset the impact of the higher tax burden, which will cause great hidden danger to the quality of the project and violate the original intention of both parties.

In this case, the author suggests that Party A can provide the raw material supplier and set the price by Party B, so that the title of the invoice is the name of Party B, so that this value-added tax can be deducted by Party B, which can reduce the construction cost of Party B, and maintain the desire of Party A to guarantee the quality of the project and reduce the cost of the project.

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(2) if the construction enterprises are operated according to the original way, the tax burden level of the construction enterprises will increase inevitably. Therefore, in order to lighten the tax burden, the construction enterprises should actively look for ways to pfer the tax burden. On the other hand, they should also start from the contract bidding and determine the source of income, and adjust the original quota fee and tender offer mode.

It is suggested that in the tender offer mode, the quotation model of "excluding tax revenue plus tax" should be applied to the quotation of Party A, and the VAT output tax should be incorporated into the quotation system to reasonably pfer the tax burden.

Of course, it is up to the construction enterprises to pfer the value added tax between the upstream and downstream of the industrial chain.

Ability.

For example, a famous network operating company (X company) has taken similar measures: X has increased the service fee of its website advertising business by 6% on the basis of the "camp to increase" opportunity. Since April 1, 2012, the company's invoices for its customers have been changed from original business tax invoices to VAT invoices.

The essence of the company's raising price is to shift the impact of the "camp to increase" on the company's 6%b proportion profits to the downstream enterprises.

If the original quotation is 10 million, it will increase to 10 million 600 thousand now.

In other words, after the X company's response, "camp to increase" has not only negatively affected the company's profits, but has gained certain benefits both at the two ends of the sales and has enjoyed the dividend of the reform.

From this we can easily find that X has benefited from the two measures after adopting the measures:

First, it not only digested the 5% business tax that should be borne before the reform, but also increased the profit of the company.

The two is that the X company not only pfers the value added tax burden of 6% to the downstream enterprises, but also deductions the upstream invoices from the upstream enterprises, and achieves the goal of reducing the tax burden level by shifting the tax burden of the upstream and downstream enterprises.

Through the example of X company above, it provides some reference for construction enterprises.

Although X's practice may not be directly applied to every construction enterprise, construction enterprises can imitate this practice in the bidding process.

Whether or not to raise the contract price depends on the bargaining power and the ability to pfer tax burden in the market.

Generally speaking, the enterprises who are in the upstream of the whole industry chain have stronger ability to pass the tax burden, and the ability to pfer the enterprises at the bottom and bottom is relatively weak.

The upper contractor of the construction industry can make the downstream subcontractors invoke the special invoices, and the downstream subcontractors can make their sub contractors invoke the special invoices. The smaller the scale of the enterprises, the weaker the bargaining power and the worse the ability to pfer tax burden.

(1) appropriately increase the outsourcing ratio of non core businesses.

To some extent, enterprises, like people, have limited energy and resources. If they blindly pursue a comprehensive business, they will oversize their business stalls and expect to achieve huge economic benefits in their main businesses and sideline businesses.

Therefore, after the "camp changed to increase", construction enterprises can concentrate their limited resources on the most advantageous and promising business, and the so-called "good steel is on the cutting edge".

For the non core businesses of enterprises, they may consider subcontracting.

By doing so, we can make effective allocation of resources of our enterprises, reduce unnecessary waste of resources, and enable other enterprises to give full play to their advantageous projects and promote the common progress of the whole society.

For example, after undertaking a project, a construction enterprise may consider subcontracting some enterprises with the qualification of VAT general taxpayers, such as excavating earth and stone, embedding optical cables and erecting communication poles, so that it can not only reduce labor costs of enterprises, but also obtain deductible invoices from subcontracting enterprises.

(2) pay attention to the price discount point.

Before proposing to select suppliers of materials, we should give priority to suppliers with general taxpayer qualifications. But if small suppliers are provided with quality assurance and lower prices than ordinary taxpayers, how should enterprises make their choice? Should they still insist on choosing a high price general taxpayer? The answer is No.

The following is the consideration of the value-added tax rates of 17% and 13% of the general taxpayer, respectively. The taxpayers of small scale 3% (by tax authorities) and 0 of the value-added tax can provide the basis for selecting suppliers by calculating the price discount threshold.

The results are as follows:

As shown in the above table, when the general taxpayer 17% tax rate and the small taxpayer 3% tax rate, the price discount threshold is 60.81%, that is to say, when the price of the small taxpayer is 60.81% of the general taxpayer, it is all right to choose either from the two.

Below this proportion, choose small taxpayer, choose the general taxpayer above this proportion.

In the case of a small taxpayer with a value-added tax rate of 0 (unable to issue special invoices for value-added tax), the price discount point is 84.02%.. When the price of a small taxpayer falls below this ratio, a small taxpayer is selected, whereas a general taxpayer is chosen instead.

(1) priority should be given to enterprises with VAT invoices as suppliers.

We should sort out the existing equipment suppliers and construction erector, and try to select the general taxpayer in the bidding and procurement process, and eliminate the paction price of small-scale taxpayers or reduce the small-scale taxpayers.

In addition, the freight charges in the procurement process should also be clarified in the relevant contracts, and the special invoices for VAT should be provided.

(2) arrange the purchase plan of the fixed assets rationally.

After the reform, the purchase of fixed assets can offset the value added tax and reduce the tax burden of enterprises. Therefore, enterprises should formulate a reasonable plan for purchasing fixed assets, and make detailed plans for different projects, departments, and different uses, so as to maximize the deduction function of fixed assets input tax.

(3) enterprises should comprehensively consider and co-ordinate their annual investment plans.

The signing of contracts and the receipt of invoices should be timely, so as to avoid the problem of unbalanced tax burden in the year.

Especially in the face of China's new round of infrastructure construction has begun on a large scale, construction enterprises should pay more attention to the investment rhythm.

At present, domestic construction enterprises are relatively simple compared with international enterprises. First of all, the development of China's construction market is not perfect. Many enterprises undertake the project in order to win the bid, take low price bidding and black box operation, thus causing the gross profit margin of the entire construction industry enterprises to be low, and many enterprises are running small profits or even negative profits.

Secondly, the price of raw materials market is not stable. Due to inflation and other reasons, the price of raw materials such as steel, wood, cement, optical cable continues to rise. In addition, labor costs have been increasing in recent years, all of which have pushed up the cost of engineering projects and reduced the profits of enterprises.

In addition, the long-standing problem of construction enterprises - accounts receivable recovery has not been effectively solved.

This is because the construction unit (Party A) takes an absolute advantage in the construction of the project, and the work unit (b) is at a relative disadvantage, resulting in problems such as capital construction and arrears of project funds, which aggravates the operational risk of the construction enterprise and hinders the sound development of the whole construction industry.

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"Low level, low capacity - low value added Projects - low income, low profit - low accumulation, no development - low level and low capacity" is the most accurate description of the current construction industry status quo. After the "camp changed to increase", the increase in tax burden will further reduce the very low profits of construction enterprises.

To reverse this situation, construction enterprises must change their business models.

Compared with the international mainstream enterprises, there is an important difference between our construction enterprises and the international mainstream enterprises.

At present, many excellent international construction enterprises focus on the early and late stages of the project, and rely mainly on project design, consultation and material procurement to obtain relatively high profits.

In contrast, domestic enterprises still adopt the old mode of operation and development, focusing on the profit of enterprises in the construction stage. Relying on the "dry" project to get profits, it is not only hard but also low profit margins.

With the progress of science and technology and social development, construction projects are increasingly showing the characteristics of large-scale, specialized and developing. The old mode of operation of construction enterprises in China has gradually failed to keep pace with the development of the times. Only by making positive responses can we gain a firm foothold in the increasingly competitive market.

China's construction enterprises can imitate the development experience of foreign excellent enterprises, adopt the business mode of "design procurement construction", make adjustments in the industrial structure, close the focus of enterprise profit growth to the upstream industries with high economic value added, and bid farewell to the management mode solely relying solely on the construction profits, and develop towards the all-round production mode of "design, planning, procurement and construction".

The key points can be summarized from the following three aspects:

(1) improve product differentiation.

The construction enterprise can realize the renovation of the basic equipment through a large amount of fixed assets investment, and replace the manual with the mechanized equipment purchased to achieve the industrialization of the target project, so that every part of the project is made of 1.5 finished products or components, so that the differentiation of the products can be greatly improved.

(2) develop diversified industries appropriately.

After the camp changed to increase, the construction enterprises not only continued to build their own advantages, but also developed other parts of the industrial chain, and actively moved towards the areas with high added value.

Broaden the scope of operation of enterprises and enhance their core competitiveness.

(3) increase investment in science and technology, speed up the renewal of enterprise assets, and enhance the management strength of enterprises.

We should expand the proportion of businesses with high technology content and try to avoid the larger proportion of labor cost.

After the "camp changed to increase", the purchase of fixed assets can also generate input tax to deduct and reduce the tax burden of enterprises.

China's construction enterprises can also take advantage of this important opportunity to realize the upgrading of equipment and technology, reduce labor costs, and ultimately enhance the overall competitiveness of enterprises.

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