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Analysis on Industries to Profit from the Change from Business Tax to Value-Added Tax: The Architect
Sources:DTS  Post time:2016-3-25

As approved by the State Council, staring from May 1, 2016, the Business Tax would be changed into Value-Added Tax on a national scale. All business tax payers such as the architectural industry, real estate industry, financial industry and service industry would be paying value-added taxes instead.
Which Industries Profit Most?
As the institute states, as one step of the structural reform on the suppliers’ side, the “Change” would bring more burden-alleviating effect for the traditional periodical companies with a narrow profit margin. Among architectural industry, real estate industry, financial industry and service industry, the architectural industry and real estate industry, whose ROE are relatively low, would probably profit more and become dark horses.
Industrial Securities believes that the Change would bring more net profit for more than half of the architectural enterprises, that it would first bring more new profit for architectural enterprises with low gross profit margin, and that it would also massively promote the net profit for architectural enterprises with a high compensation rate.