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Research on Tax Administration of Construction Enterprises in European Union

Author(s)

Bohan Liu1,*, Cheng Zhang2

Affiliation(s)

1School of Accounting and Finance, Xiamen University Tan Kah Kee College, Zhangzhou, Fujian, China 2School of International Business, Xiamen University Tan Kah Kee College, Zhangzhou, Fujian, China *Corresponding Author

Abstract

The shift in the global economic landscape has opened up significant opportunities for domestic construction enterprises to expand their reach abroad through the implementation of the national "Belt and Road" initiative. This has led to a surge in overseas engineering projects, greatly accelerating the development of these enterprises. In recent years, China has undertaken a significant number of construction projects in Southeast Asia, Central Asia, Africa and other regions, thereby accumulating a substantial body of experience in the implementation process. However, there has been a paucity of projects in Europe, particularly in EU countries, which have been subject to analysis of the principal tax types involved in construction enterprises in the EU, with a view to identifying and comparing the differences. In light of the domestic tax and the experience gained from the construction of projects in Croatia, this paper puts forward suggestions regarding the tax administration of construction enterprises in the EU. The aim is to avoid tax risks, reduce the tax burden and improve the economic benefits of overseas construction projects through the implementation of tax planning strategies. The disparate tax system and rigorous implementation procedures present significant challenges for construction enterprises. In the context of tax management, it is crucial for these enterprises to identify strategies to mitigate the tax risks inherent in project implementation and to utilize tax planning techniques to minimize their tax burden.

Keywords

European Union, Tax Administration, Construction Enterprises, Tax Risk

References

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