Since the Reform of Business tax to VAT tax came into effect in the construction industry on May 1st this year, with the purpose of implementation of the spirit of the relevant tax reform, in order to avoid effective tax risks, and to enhance the company’s operating capacity, a special training session on the Reform of Business tax to VAT was held at the company headquarter July 14th. General Manager Mr. Liu Yizhong, Chief Personnel Officer Mr. Chen Zhimin, Chief Financial Officer Mr. Qiu Yongjun, leaders and employees of different departments attended the session. 

Mr. Xiao Zipeng, auditor of the financial department presented the training session, he started with explanation of the differences between business tax and VAT tax, and then a question of how to deal with the influences raised by the replacement of business tax by VAT tax in the construction industry, he introduced four items for example, construction projects, real estate project purchase and sell, real estate rent, invoices reimbursement, concerning the actual situation of tax related aspects in the construction industry, with comparative analysis, case commentary, live Q & A process, he gave the answer of how to deal with and prevent financial risks with concrete principles and measures, and offered all the participants a lecture of general tax information and consultation of policies.
It is reported that, the reform of Business tax to VAT is an important decision of the State Council at a critical moment of China’s economic transformation and starting from the overall arrangement of the intensify reform. It is very important for optimizing the industrial organization, reducing the corporate tax and supporting the macroeconomic development, but, it raises a big challenge on the question of how to avoid operational risks for company management. With the test bring by the said tax reform, as a construction company, how shall we enhance the management the procedure of the input tax deduction, how shall we manage tax planning, how shall we reinforce internal management, and how to standardize enterprise operational method? These are all new subject that construction companies should handle upon the above mentioned reform.
Although, through this training session, company employees, especially those of the financial department has acquired a systematic understanding of the background of the said tax reform, obtained a solid understanding of the influence of the Business tax to VAT reform, and it could be served as a sound base for tax related works as in every stage of this reform.