Tax Planning for Real Estate Development Companies——An Example from ABC Company.pdf

1、Due to the dynamic changes and the macroeconomic control from the governments to the real estate industry in recent years, the Chinese real estate industry is undergoing through a trend in which the market will be refine

2、d and will be vertically conformed. In addition, because of the particularity of the industry, tax payment and tax mitigation associated with the industry has always been complicated issues. Real estate industry has draw

3、n a great amount of attention from the society because of it huge impacts on people's daily lives. This attention mainly focuses on the price of properties, the profit margin of real estate companies, and tax mitigation,

4、 dodging, and evasion problems related to the real estate industry.
　　 Tax planning and mitigation is a tax decision making behavior that companies engage in to reduce tax payments and to maximize companies' economic

5、 returns. The purpose of tax planning and mitigation is to lighten the tax burden while avoiding any violation risk of laws and regulations. Tax planning is usually done through activities that are allowed within the bou

6、ndary of laws and regulations, such as well-planned operation, investments, finance, transactions, and so on. It is individual and business behavior to lower tax costs to achieve the goal of profit maximizing Companies s

7、hould not only adhere to laws and regulations to fulfill their obligations as tax payers, but also need to make good use of the preferential policies to take the available opportunities of maximizing values of their own<