Question: Document No. 121 of Finance and Taxation [2010] stipulates that for real estate taxed according to the original value of the property, regardless of accounting, the original value of the property should include the land price, including the price paid to obtain the land

Question: Document No. 121 of Finance and Taxation [2010] stipulates that for properties taxed according to the original value of the property, regardless of accounting, the original value of the property should include the land price, including the price paid to obtain the land use right, the costs incurred in the development of the land, etc. If the parcel area ratio is less than 0.5, the land area shall be calculated at twice the building area of ​​the property and the land price included in the original value of the property shall be determined based on this.

　　In actual calculation, there are different opinions on how to calculate the land price included in the original value of the property, mainly in the case where the floor area ratio is greater than 0.5. For example, if the plot floor area ratio is 0.8, the land area is 10,000 square meters, and the total land price is 10 million yuan, then the land price per square meter is 1,000 yuan; if the building area of ​​the house is 8,000 square meters, the actual land area of ​​these houses is 6,000 square meters, what is the land price included in the original value of the property? Should 10 million yuan be included in the original value of the property be levied, or should 8 million yuan (8,000×1,000) of the building area be included in the original value of the property be levied, or 6 million yuan (6,000×1,000) of the building area be included in the original value of the property be levied?

　　　Answer: The Notice of the Ministry of Finance and the State Administration of Taxation on Urban Land Use Tax and other Policies for Employment Units for Disabled Persons" (Finance and Taxation [2010] No. 121) is very clear. This article has two meanings: one is for "if the plot area ratio is less than 0.5, the land area shall be calculated at twice the construction area of ​​the property and the land price included in the original value of the property shall be determined based on this." Here is mainly for the Ministry of Finance and Economics. If a warehousing enterprise has a large area of ​​land and an excessive increase in tax burden, it needs to be given certain care. Only part of the land price is allowed to be included in the original value of the property, that is, to calculate the land area at twice the building area of ​​the property and determine the land price included in the original value of the property based on this." Second, for the parcel area ratio greater than 0.5, "regardless of accounting, the original value of the property should include the land price", that is, all land prices are included in the original value of the property.

　　 Therefore, all 10 million yuan should be included in the original value of the property to be levied to levied property tax.

For example:

A certain enterprise is a general VAT taxpayer. In April 2020, it invested 15 million yuan to obtain a land use right of 50,000 square meters, and used to build a factory with an area of ​​20,000 square meters. The construction costs and related expenses incurred are 30 million yuan. All projects are completed and accepted by the end of 2020 and put into production and use (not taking into account the impact of VAT). Calculate the original value of the property that should be determined for the property tax levied by the factory.

Solution: In this case, the land area ratio of the plot is less than 0.5 (2÷5 = 0.4), and the land price included in the original value of the property should be determined at twice the building area, that is, 1500÷5×2×2 = 12 million (yuan million). Therefore, the original value of the property determined by the property tax levied by the factory = (1200 + 3000) = 42 million (yuan million) (Article 3, Finance and Taxation [2010] No. 121).