The real estate industry launched the tax system reform that replaced the business tax (BT) with a value-added tax (VAT) on May 1, 2016. To study the impact of the policy reform on the financial performance of listed companies in the real estate industry, this paper employs the annual financial data of China's A-share listed real estate companies in 2015 and 2016 as research samples, and carries out descriptive and regression analysis by establishing a panel data model. The results show that following the policy reform, the change in the turnover tax burden is significantly negatively correlated with the financial performance of the companies and the proportion of the outsourced production cost to the total operating costs is significantly positively correlated with their financial performance, while there is no significant correlation between the proportion of the new fixed assets to the initial fixed assets and their financial performance.
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