Gray Correlation Analysis on the Tax Cost and Core Competence of Real Estate Enterprises

Due to the severe competition and saturation of real estate market, vicious price competition reappears between the real estate enterprises in second and third-tier cities, which contribute to the unsustainable development of real estate enterprises. Therefore, reducing the construction cost, especially the tax cost, will certainly enhance an enterprise’s core competence. Based on the panel data of Chinese real estate tax and house price during 2002~2012, the influence of different types of real estate tax on the house price can be quantified to find out the correlation by the gray correlation analysis. According to the relational degree, some suggestions will be offered to prevent and control the possible tax risks caused by the increased tax costs of corresponding taxes. And on this basis, some possible solutions can be designed to avoid tax reasonably and achieve the goal of tax saving.