In recent times, there have been many discussions on the deduction of land value-added tax revenue and land cost under the general tax calculation method. The focus of the discussion is on the general tax calculation method. Using different tax calculation will cause inconsistent land value-added tax income and value-added tax, corporate income tax, and whether it will cause repeated deduction of land costs, etc. This article uses the original source and the right way to explain it one by one from the policy document regulations, in order to achieve the goal of comrades who are confused and confused, and can know at a glance, oh, it turns out that this is the purpose. Of course, personal understanding of policies is limited, so please give me some advice.
1. Calculation of pre-gathering income of land value-added tax
Land value-added tax adopts a management method combining pre-gathering and liquidation. Before the development project is liquidated, the pre-gathering method is adopted. It should be emphasized that the income from pre-gathering tax and the income at the time of liquidation is not sometimes really not Consistent with , and the income of land value-added tax we are discussing refers to the income of land value-added tax liquidation. For the sake of understanding, let me first explain the pre-gathering tax income of land value-added tax:
Announcement No. 70 of the State Administration of Taxation of 2016 (hereinafter referred to as Announcement No. 70): After the taxpayer's taxable income transfer of real estate will not include value-added tax. For taxpayers who apply the general tax calculation method of VAT, their land value-added tax revenue from transferring real estate does not include the VAT output tax amount; for taxpayers who apply the simplified tax calculation method, their land value-added tax revenue from transferring real estate does not include the VAT tax amount.
To facilitate taxpayers and simplify the calculation of land value-added tax pre-levy, if real estate developers sell real estate projects developed by themselves in advance, they can calculate the basis for land value-added tax pre-levy in accordance with the following methods:
Doing of land value-added tax pre-examination Based on = Prepaid payment - VAT tax should be prepaid
According to Announcement No. 70, when real estate developers use prepaid payment to sell real estate projects, a simplified method can be adopted to prepaid land value-added tax. At this time, the basis for land value-added tax calculation is inconsistent with taxable income. The taxable income of land value-added tax is: does not include value-added tax. For taxpayers who apply the general tax calculation method of VAT, their land VAT taxable income from transferring real estate does not include VAT output tax ; the basis for tax calculation is: Prepayment - VAT tax should be prepaid . What's the difference here? , in combination with the State Administration of Taxation No. 18 announcement in 2016 (detailed explanation below, referred to as Announcement No. 18), give a brief example:
One-bedroom business uses prepayment method to sell a total of 1 million yuan in July 2021, so the value-added tax should be pre-collected as:
100/1.09 *3%=27,500 yuan
The land value-added tax that should be levied is: (100-2.75) *1.5%=15,600 yuan, (tax calculation basis is 97.25)
instead: 100/1.09*1.5%=13,800 yuan (tax calculation basis is 91.74). Here, the tax calculation basis for VAT and land value-added tax is inconsistent when pre-collecting, but this is only a simplified calculation in the 2016 Announcement No. 70, and does not affect the calculation of taxable income of both (detailed below). It should be noted that when pre-collecting VAT, the pre-collecting VAT is directly converted into pre-collecting payments, and the land price is deducted only when calculating the sales of VAT. Similarly, the tax calculation basis for pre-collecting VAT is that it does not include the pre-collecting VAT, rather than the sales of tax excluding tax. In practice, there are many errors in this understanding.
2. Pre-cash of value-added tax and revenue and sales of value-added tax
Here we first need to figure out one problem, that is, the income and value-added tax calculation basis (sales) of value-added tax are not the same thing, the two may be consistent or inconsistent. For example, in the case of different taxation, the income and tax calculation basis may be inconsistent. If real estate development companies sell real estate projects developed by themselves, the difference is taxed.
According to the announcement of the State Administration of Taxation No. 18 of 2016 , , the general tax calculation method, and the sales amount is calculated based on the total price and extra-price expenses obtained, and the balance after deducting the land price corresponding to the current sales real estate project. The calculation formula for sales is as follows:
Sales = (all price and extra-price expenses - land price allowed to be deducted in the current period) ÷ (1+11%) (marked as the original provision, now 9%)
We can see from the above formula that the denominator becomes smaller, and the result will inevitably become smaller. So is it talking about the income of value-added tax (note that it is income, not taxable sales) or the main business income also becomes smaller? Actually, it is not. Let’s follow the above example. Suppose that the land price corresponding to the area of the 1 million real estate project is 100,000 yuan (the calculation process is omitted), and the sales amount is:
(100-10)/1.09=825,700 yuan
After deduction, the sales tax amount is: 82.57*9%=7 .43 million
So, where is the difference between the traditional calculation of value-added tax of 100/1.09*9% = 826 million yuan (8.26-7.43)? Let’s take a look at it through accounting (no accounting standards - income is considered):
Debit: Bank deposit 100
loan: main business income 91.74
taxes and fees payable-value-added tax payable (performance tax amount) 8.26
debit: taxes and fees payable-value-added tax payable (performance tax amount deduction) 0.83
loan: main business cost 0.83
The 83 million yuan here is the value-added tax amount of the 100,000 yuan land price that should be deducted (10/1.09*9%=0.83). The actual output tax is 74,300 yuan, while the value-added tax revenue has not changed to 919,400 yuan, but the sales amount is 825,700 yuan, and the output tax is 74,300 yuan. In order to make it easier to understand, we will further explain from the perspective of the value-added tax return, mainly the main table, Appendix 1, and Appendix 3: First calculate the output tax that can be deducted in this period.
Attachment 1: (For the convenience of display, some columns were deleted)
Then, the main table extracted data and the tax amount to be extracted to the sales item was 74,300 yuan. According to the provisions of Announcement No. 70, land value-added tax revenue does not include the output tax under the general tax calculation method, which means that it does not include the 74,300 yuan, which is also consistent with the output tax amount shown in the value-added tax return.
33. Deduction of corporate income tax, land value-added tax and land price
The three main taxes of real estate development and operation, namely value-added tax, corporate income tax, and land value-added tax, all involve the deduction of land price. The deduction methods of the three are different. Everyone also has different understandings when using them, but the tax policy regulations are certain. You can understand them from different perspectives, but the results must be certain. If you cannot understand them differently, different results will be produced. Here, I will explain from the perspective of tax policy regulations, in order to achieve the goal of achieving the same destination in a different way:
1. Deduction of land price in value-added tax:
According to Announcement No. 18, taxpayers can deduct land price under the general tax calculation method, because tax deduction of VAT is the amount of invoices and other vouchers, and the land price cannot obtain special invoices and other vouchers. The purpose is to ensure the integrity of the VAT chain as an example.There are three points to note here. First, only if the general tax calculation method is adopted (for example, if the old project adopts the simple tax calculation method, the land cost cannot be deducted); second, the deducted land price is the corresponding land price for the current sales real estate project. The taxpayer should establish a ledger to register the deduction of the land price, and the deducted land price shall not exceed the actual land price paid by the taxpayer. At the same time, necessary certificates are required such as financial notes (Announcement No. 18) supervised by the provincial or above (including provincial) financial departments, providing demolition agreements, payment of both parties to the demolition and obtaining demolition compensation fee vouchers, etc. materials that can prove the authenticity of the demolition compensation fee (Financial Taxation No. 2016 140); third, it needs to be reflected through the value-added tax return (see above).
2. Deduction of land price in corporate income tax:
According to the State Taxation No. 31, the land price in corporate income tax is land expropriation fee and demolition compensation fee: refers to various expenses incurred to obtain land development and use rights (or development rights), mainly including land purchase price or transfer fee, municipal supporting fees, deed tax, arable land occupation tax, land use fee, land idle fee, and land change use The land prices and related taxes and fees paid by Tuhe over area, demolition compensation expenditure, resettlement and relocation expenditure, resettlement and relocation expenditure, resettlement and relocation expenditure, crop compensation expenditure, dangerous housing construction expenditure, etc., here is different from the deduction scope of value-added tax. The deduction of the land price of corporate income tax is mainly deducted before tax through collection and distribution. After obtaining the land use rights and the above expenses paid, it is included in the "development cost", allocated according to the determined cost object, and transferred to the "development product" after the development project is completed. After the real estate project is sold, it is included in the "main business cost" pre-tax deduction.
3. Deduction of land price in land value-added tax: The deduction of land price in land value-added tax liquidation is mainly to share the land price. The first is to share the allocation between multiple projects on the same land (land value-added tax is liquidated according to the project); the second is to share between different real estate types in the same project (three-part or two-part); the third is to share between sold and unsold, and the sold part in each property type can be deducted during liquidation.
You will find in your study that the six costs of land value-added tax are very similar to the six costs of corporate income tax, which are easy to be confused. In practice, some tax departments also require the verification of corporate income tax when conducting land value-added tax liquidation. This requirement also makes sense from the perspective of strengthening tax management, but land value-added tax liquidation and corporate income tax verification are two different things, but they cannot be confused. They are composed of six costs of two tax types. Literally speaking, it is indeed very close, but the tax calculation rules of the two are different: First, the objects of the two are different. Although they are related to real estate projects, land value-added tax is the collection of tax data for multiple years for a project, and corporate income tax is the collection of tax data for all projects (including other business activities) in one year. This must be clear; Second, the deduction principles of the two tax types are different. Corporate income tax follows the principle of "real occurrence, correlation, reasonableness and legality". Invoices are important aspects and not all (General Administration 2018 Announcement No. 28). Land value-added tax follows the principle of positive enumeration. In principle, only the items listed in the liquidation regulations shall not be deducted as deduction items. In practice, invoices are required to be used as deduction items except for demolition compensation. During the period expenses are also deducted proportionally, which is different from corporate income tax. Third, whether there are projects or not, the sales of the project must be paid quarterly and annually. Land value-added tax can only be initiated after the project meets the conditions for liquidation or should be liquidated. The time point of occurrence of the two is inconsistent.
4. Summary of the following points
1. Under the general tax calculation method of real estate projects developed by real estate developers, the income of value-added tax is the total price and extra-price expenses that are converted into tax-excluding tax. When the sales amount is deducted from the corresponding land price, the difference between the two calculated output tax is adjusted by "Taxes and fees payable-VAT payable (Export Tax Deduction)". Finally, the adjusted amount is displayed in the main form of the declaration form.
2. Under the general tax calculation method, the income of land value-added tax is excluding the output tax. This output tax is the output tax after deduction, which is consistent with the output tax column of the main form of the VAT return. It should be noted that the income from land value-added tax is only used when the land value-added tax is liquidated. The tax calculation basis during pre-collecting is that it does not include the pre-paid value-added tax, not the output tax.
3. The basis for calculating corporate income tax is consistent with VAT income. If a tax is deemed to be a sales act and the tax will be different, and the annual corporate income tax declaration form will be adjusted.
4. Regarding the deduction of land prices, value-added tax is calculated and deducted (under the general tax calculation method only); corporate income tax is deducted before tax through collection and distribution; land value-added tax is deducted as deduction items through collection, sorting and sharing.
or above is purely academic exchanges and improper expenditures. You are welcome to criticize and correct me. You are welcome to slap the bricks until your head is broken and you will be willing to do so.
Source: Dejuzheng
