How to do tax planning in Hangzhou construction industry

There are many problems in the business model and management of the construction industry itself. For the construction industry, the surge of corporate tax burden and high profits have also led to high tax burden. Therefore, it is very important to make reasonable tax planning for construction enterprises. A successful and effective tax planning can help construction enterprises continue to become bigger and stronger.

1. What taxes should the construction industry pay?

Construction enterprises need to pay more than ten kinds of taxes, including enterprise income tax, value-added tax, additional tax, stamp duty, property tax and land use tax. And the tax burden is very large.

Second, the construction industry is facing tax burden pressure.

1. The purchased materials are not standardized.

The procurement environment in the construction industry is very complicated. Many construction enterprises buy bricks, stones, sand and other building raw materials, which are often provided by local building materials suppliers or ordinary people. It is difficult to obtain a compliant invoice during the transaction.

When the expenses without legal bills are settled, the taxable income will be increased according to the provisions of the tax law, resulting in overpayment of enterprise income tax. Similarly, these non-compliant bills, as well as other ordinary VAT invoices, cannot be used as VAT input deduction vouchers, resulting in overpayment of VAT.

2. Weak management control

The market environment of the construction industry is quite special, with great job mobility and weak management control. Many project managers only care about their own immediate interests, regardless of the company's tax burden. They are not strict in signing contracts, their business practices are not standardized, and they purchase raw materials at will. In case of economic disputes, it doesn't matter if they can't get legal bills. At the same time, in order to save labor costs, some construction enterprises have invited some non-financial relatives or financial beginners. Their poor quality in tax management, lack of relevant tax knowledge and chaotic accounting will lead to an increase in tax burden.

3. The labor cost is high.

High labor costs in the construction industry: The construction industry is a typical labor-intensive enterprise. In the cost structure of enterprises, labor costs account for a high proportion, and it is usually impossible to obtain special VAT invoices for this part of labor costs as input deduction.

4, social security pressure.

The construction industry either refuses to pay social security or pays according to the minimum social security base for a long time. With the unified collection of social security, enterprises have to pay social security fees in strict accordance with the requirements. However, the quality of employees in the construction industry is uneven, the turnover of personnel is frequent, the construction site is constantly changing, and there are many temporary workers, which leads to the complexity of paying social security for enterprises and the increase of costs.

As mentioned earlier, the construction industry has a heavy tax burden. With the increasingly strict tax environment, construction enterprises should fully realize the importance of tax planning, analyze specific problems and reduce the tax burden reasonably and legally.

Three, in the face of tax pressure, how to carry out tax planning?

1, master the tax law

Facing the tax planning of construction enterprises, mastering the tax law is the primary premise of tax planning. No matter which industry carries out tax planning, it is necessary to understand the tax laws of related industries first. Only by understanding the relevant tax laws and regulations can enterprises know where to start and where to save taxes for themselves.

2. Taxpayer status

Different taxpayers have different tax rates, and the industries involved in the construction industry include production, decoration, construction and installation. Therefore, in the process of paying value-added tax, due to the different identities of taxpayers, the effect of tax payment is also different. For the case that the source of its own materials is relatively large and the suppliers of materials are all large companies, a general taxpayer company can cooperate. For some companies with insufficient supply channels and irregular procurement channels, we can consider setting up a small-scale company to provide services for the main enterprises.

Step 3 plan ahead

Because most general construction projects adopt the contract system, the scope of a project contract is uncertain, which leads to the different purchase prices of materials in the construction industry, which increases the difficulty of deducting and increasing indicators. If the equipment and materials suitable for construction enterprises are purchased by the construction unit itself, considerable tax invoices can be obtained and the tax burden of enterprises can be reduced. Therefore, when signing the contract, try to sign the contract with Party A. If Party A does not agree, it can negotiate and sign "the materials are provided by Party A in essence and the contract is signed by Party A in form".

4, billing skills

There are different invoicing skills for labor dispatch invoices, sand and gravel materials invoices and machinery and equipment rental invoices.

To sum up, the construction industry mainly obtains the income of enterprises by contracting various projects and providing construction and installation. Therefore, tax planning should be considered from various industries involved in the construction industry, designed separately, and made a more detailed tax planning scheme. Of course, if you don't know much about relevant tax planning knowledge, you'd better find a professional tax agency for tax planning, otherwise you will not save taxes, but will be punished by the tax authorities.