Due to the dynamic changes and the macroeconomic control from the governments to the real estate industry in recent years, the Chinese real estate industry is undergoing through a trend in which the market will be refined and will be vertically conformed. In addition, because of the particularity of the industry, tax payment and tax mitigation associated with the industry has always been complicated issues. Real estate industry has drawn a great amount of attention from the society because of it huge impacts on peoples daily lives. This attention mainly focuses on the price of properties, the profit margin of real estate companies, and tax mitigation, dodging, and evasion problems related to the real estate industry.　　 Tax planning and mitigation is a tax decision making behavior that companies engage in to reduce tax payments and to maximize companies economic returns. The purpose of tax planning and mitigation is to lighten the tax burden while avoiding any violation risk of laws and regulations. Tax planning is usually done through activities that are allowed within the boundary of laws and regulations, such as well-planned operation, investments, finance, transactions, and so on. It is individual and business behavior to lower tax costs to achieve the goal of profit maximizing Companies should not only adhere to laws and regulations to fulfill their obligations as tax payers, but also need to make good use of the preferential policies to take the available opportunities of maximizing values of their own