Introduction: Land value-added tax is a major tax burden of the real estate industry. What is the calculation method for land value-added tax for real estate companies? It is a necessary skill for doing a good job in real estate accounting. The editor of the Accounting School has sorted out the relevant tax laws and regulations to learn with everyone. If you don’t understand, you can discuss and communicate online at any time.
What is the calculation method of land value-added tax for real estate companies?
Answer: How to liquidate the land value-added tax of real estate enterprises? The general situation is as follows:
Real estate enterprises' land value-added tax is generally carried out in a prepaid and then liquidation method (the general pre-deduction rate is 2%-4%, which is different in each place):
1. Calculate the amount of the project that can be deducted (including land costs, construction costs, taxes, development expenses and interest, additional deductions, etc.)
2. Calculate the income
3. Income-deducted the amount of the project = value-added amount
4. Value-added amount/deducted the amount of the project = value-added rate
5. Calculate the tax amount by tax rate
The basic steps are as follows:
0 The formula for calculating land value-added tax is: Land value-added tax should be paid = value-added amount × tax rate
1. The "value-added amount" in the formula is the balance after the income obtained by the taxpayer transferring real estate minus the deduction amount of the item.
The income obtained by taxpayers from transferring real estate, including monetary income, in-kind income and other income.
Deduction items for calculating the added value:
(1) The amount paid for obtaining the land use right;
(2) The cost and expenses of developing land;
(3) The cost and expenses of new houses and supporting facilities, or the appraisal price of old houses and buildings;
(4) Taxes related to the transfer of real estate;
(5) Other deduction items stipulated by the Ministry of Finance. Article 7, paragraph 6 of the "Detailed Rules for Implementation of the Interim Regulations on Land Value-added Tax" stipulates that the deduction item is "in accordance with Article 6 (5) of the Regulations, the sum of the amounts calculated by taxpayers engaged in real estate development can be added to the following 20% of the deductions", that is, 20% of the sum of "the amount paid for obtaining the land use right" and "the cost and expenses of developing land".
However, not all real estate transfer and sales can be additionally deducted when calculating land value-added tax, and can only be enjoyed if it meets certain conditions. First, it must be a taxpayer engaged in real estate development, that is, an enterprise with development qualifications; second, it must actually engage in real estate development business, and additional deduction items shall not be deducted for enterprises that only engage in second-hand real estate transfers.
According to the State Administration of Taxation's "Notice on Issuing the "Land Value-Added Tax Promotion Outline" (State Taxation Hanfa [1995] No. 110), when calculating the value-added amount, the following situations should be distinguished for processing:
First, if the land or real estate use rights is transferred without development after obtaining the land or real estate use rights, when calculating the value-added amount, only the land price paid when obtaining the land use rights, the relevant fees paid, and the tax paid in the transfer process are allowed. The purpose of this regulation is mainly to curb the behavior of "speculating" buying "speculating" and selling land. Obviously, there is no provision for additional deduction items in this case.
Second, if the funds are invested after obtaining the land use right and transferring the raw land into mature land, when calculating its value-added amount, the land price paid when obtaining the land use right, the relevant fees paid, the cost required to develop the land is added to 20% of the development cost and the tax paid during the transfer process. This regulation encourages investors to invest more funds in real estate development. It is necessary to note that although this situation can be deducted additionally, when calculating the additional deduction item for transfer land use rights, only the development cost is deducted additionally, and the land cost price is not deducted additionally.
Third, for real estate development and construction after obtaining the land use right, when calculating its value-added amount, the land price and related expenses paid when obtaining the land use right, the cost and specified expenses of developing land and newly built houses and supporting facilities, taxes related to the transfer of real estate are allowed, and an additional 20% deduction is allowed.This can give taxpayers engaged in real estate development a basic return on investment to mobilize their enthusiasm for normal real estate development. It is necessary to note that when calculating the additional deduction items for the transfer and sale of development and construction houses, additional deductions are not only allowed for the additional deductions of development costs, but also for the land cost price.
Fourth, when transferring old houses and buildings, when calculating their value-added amount, the amount of deduction determined by the tax authority based on the evaluation price (i.e., the value after the replacement cost price of the house and buildings is multiplied by the new discount rate), as well as the relevant taxes paid at the time of transfer. This mainly considers that if the original cost price is used as the deduction amount, it is not reasonable. The replacement cost price used by the evaluation can relatively eliminate the impact of inflation factors, which is more reasonable. It can also be seen from this that additional deductions are not allowed in such cases of transferring old houses.
How to calculate the land value-added tax paid by real estate companies?
According to the above policies, when real estate development companies receive prepayment:
1. Under general tax calculation method:
Prepayment of land value-added tax = prepayment/(1+11%) * Land value-added tax prepayment rate
2. Under simple tax calculation method:
Prepayment of land value-added tax = prepayment/(1+5%) * Land value-added tax prepayment rate
2. Under simple tax calculation method:
Prepayment of land value-added tax = prepayment/(1+5%) * Land value-added tax prepayment rate
2. Under simple tax calculation method:
Prepayment of land value-added tax = prepayment/(1+5%) * Land value-added tax prepayment rate
To facilitate taxpayers and simplify the calculation of land value-added tax pre-tax, according to the "Announcement of the State Administration of Taxation on Several Regulations on Land Value-added Tax after the VAT Reform" (Announcement No. 70 of the State Administration of Taxation 2016): In order to facilitate taxpayers and simplify the calculation of land value-added tax pre-tax, if real estate developers adopt pre-payment method to sell real estate projects developed by themselves, the basis for land value-added tax pre-tax can be calculated according to the following methods:
The basis for land value-added tax pre-tax pre-tax pre-tax
