1. Taxpayer and scope of taxation
(I) Taxpayer
Land value-added tax is the unit and individual that transfers state-owned land use rights, above-ground buildings and their attachments and obtains income. Including domestic and foreign-funded enterprises, administrative institutions, Chinese and foreign individuals, etc.
(II) Tax scope
1. Basic tax scope
(1) Transfer of state-owned land use rights;
(2) Transfer of above-ground buildings and their attachments together with state-owned land use rights;
(3) Trading of existing real estate.
[Tip]
(1) The basic tax scope of land value-added tax is not limited to land transactions;
(2) The tax scope of land value-added tax has two key characteristics: "state-owned" and "transfer" (different from "transfer").
2. Special tax scope
Specific issues can be summarized into three aspects: levy, no levy, and exemption from . The following summarizes the problems of expropriation and exemption of several specific real estate situations that often occur as follows:
(1) The situations that fall within the scope of land value-added tax (deducted) :
① Transfer of state-owned land use rights;
② After obtaining the land use rights, the house is developed and built and then sold;
③ Trading of existing real estate;
④ Use real estate to offset debts with real estate (the transfer of ownership occurs);
⑤ Exchange real estate between units (with physical form income);
⑥ Changes in real estate ownership in real estate investment, corporate transformation, merger and division of real estate development companies;
⑦ Transfer after the construction of cooperative houses.
(2) Situation that does not fall within the scope of land value-added tax (not levy) :
① Real estate inheritance (no income);
② Real estate gift (the object is limited, no income);
③ Real estate rental (ownership has not changed);
④ During the real estate mortgage period (ownership has not changed);
⑤ Real estate construction behavior (ownership has not changed);
⑥ Real estate appraisal value-added;
⑦ Changes in real estate ownership in restructuring investment, corporate transformation, merger, and division that are not related to real estate development companies.
(3) The situation where is exempted from or temporarily exempted from land value-added tax:
① The exchange of real estate for own living between individuals shall be verified by the tax authorities;
② After the cooperative construction is completed, the house shall be divided into proportion for self-use;
③ Real estate requisitioned and recovered in accordance with the law due to national construction needs;
④Build ordinary standard residential houses for sale, and the value-added amount of does not exceed 20% of the deduction project amount;
⑤Enterprise institutions, social groups and other organizations transfer old houses as public rental housing units, and the value-added amount does not exceed 20% of the deduction project amount.
2. Tax rate
Land value-added tax adopts level 4 super rate progressive tax rate . The progressive basis for this tax is the ratio between the value-added amount and the amount deducted item.
Land VAT Tax rate table:
III. Taxable income and deduction items
(I) Taxable income
Taxable income
Taxable income obtained by taxpayers to transfer real estate: including the total price of obtained by transferring real estate and related economic income . In terms of form, it includes monetary income, physical income and other income. Non-monetary income should be converted into the amount of money and included in the total income.
[Special reminder] After the " VAT reform " in May 2016, the income obtained by land value-added tax taxpayers to transfer real estate was excluding value-added tax revenue. For taxpayers who apply the general tax calculation method of VAT, their land value-added tax revenue from transferring real estate does not include VAT output tax; for taxpayers who apply the simple tax calculation method, their land value-added tax revenue from transferring real estate does not include VAT taxable amount .
Real estate development enterprises conduct real estate development projects after VAT reform land value-added tax liquidation , and determine taxable income according to the following methods:
Land value-added tax tax revenue = income obtained from transfer of real estate before tv.tv. + VAT income obtained from transfer of real estate after tv.tv.
(II) Deduction project
1. The amount paid for obtaining land use rights (applicable to transfer of new houses and transfer of existing real estate)
includes the land price and the relevant fees paid in accordance with national regulations when obtaining land use rights.
The deed tax paid by real estate development companies to obtain land use rights shall be deemed as "relevant fees paid in accordance with unified national regulations" and included in the "amount paid for obtaining land use rights".
2. Real estate development cost (for new house transfer)
includes land expropriation and demolition compensation fees (land expropriation fees, arable land occupation tax, etc.), preliminary project fees, construction and installation project fees, infrastructure fees, public supporting facilities fees, development indirect costs, etc.
3. Real estate development expenses (for new house transfer)
(1) Taxpayers can calculate the shared interest expenses based on the transferred real estate project and provide financial institution loan certificates:
allows deductions = interest + (the amount paid for obtaining land use rights + real estate development cost) × 5%
[Note] The above interest cannot exceed the amount calculated based on the same loan interest rate of the same period of commercial banks. Interest overdue, interest overdue and penalty interest shall not be deducted.
(2) If a taxpayer cannot calculate the interest payments for the transfer of real estate projects or cannot provide a proof of loan from a financial institution (including the situation where all the funds are used without interest payments)
allows deductions = (the amount paid for obtaining the land use right + the real estate development cost) × within 10%
(3) If a real estate development company borrows money from a financial institution and has other loans, the two methods described in items (1) and (2) above cannot be applied at the same time when calculating and deducting the real estate development expenses.
[Expand knowledge points] When land value-added tax is liquidated, the interest expenses that have been included in the cost of real estate development should be adjusted to the financial expenses to calculate the deduction.
4. Taxes related to the transfer of real estate (applicable to the transfer of new houses and the transfer of existing real estate)
includes urban construction tax and stamp duty paid when transferring real estate. Educational surcharges are deemed to be tax deductions.
There are differences in the tax deduction policies between real estate development companies and non-real estate development companies:
5. Other deduction items stipulated by the Ministry of Finance (applicable to the transfer of new houses of real estate development companies)
Additional deductions for taxpayers engaged in real estate development = (the amount paid for obtaining land use rights + real estate development costs) × 20%
[Tip]
(1) This additional deduction is only valid for the transfer of new houses of real estate development companies, and non-real estate development companies do not have this policy;
(2) If the transfer is transferred without development after obtaining the land use rights, additional deductions shall not be allowed.
6. Evaluation price of old houses and buildings (applicable to transfer of existing real estate)
Tax Law stipulates that if a taxpayer transfers an old house, the land value-added tax shall be levied as the amount of deduction of the project based on the appraised price of the houses and buildings, the land price paid for obtaining the land use rights, the relevant fees paid in accordance with the unified national regulations, and the tax paid in the transfer process (excluding value-added tax) paid during the transfer process.
Evaluation price = Replacement cost price × New Degree discount rate
Taxpayers who transfer old houses and buildings cannot obtain the appraisal price but can provide a home purchase invoice, shall be confirmed by the local tax department and the amount of deduction items specified in Article 6, Article 6, (I) and (III) of the Regulations (the amount paid for obtaining the land use right, the cost and expense of new houses and supporting facilities, or the appraisal price of old houses and buildings) may be calculated based on the amount contained in the invoice and additional 5% per year from the purchase year to the transfer year. When calculating the deduction items, one year will be counted from the date stated in the home purchase invoice to the date of issuance of the house sale invoice, and one year will be counted for every 12 months; if it exceeds one year, less than 12 months but more than 6 months, it can be regarded as one year.
For deed tax paid by taxpayers when purchasing a house, any deed tax payment certificate can be provided as "tax related to the transfer of real estate", but it is not used as an additional 5% base.
[Tip] Deed tax deduction:
transfers new real estate - the deed tax paid when obtaining land use rights is deducted from the "payment amount for obtaining land use rights";
transfers existing houses cannot obtain the appraised price - the deed tax when purchasing a house is deducted from the "tax related to the transfer of real estate", but is not used as the base of additional 5%;
transfers existing houses can obtain the appraised price - the deed tax when purchasing a house is not deducted.
If the transfer of old houses and buildings does not have an appraisal price and cannot provide a home purchase invoice, the tax authorities may implement the approved collection in accordance with Article 35 of the Tax Collection and Administration Law.
If the land price was not paid when obtaining the land use right or the paid land price certificate is not allowed to be deducted.
[Special reminder] The value-added tax input tax amount involved in the land value-added tax deduction items stipulated in the "Interim Regulations on Land Value-added Tax of the People's Republic of China" and other regulations. If the deduction is allowed to be calculated in the output tax amount, it will not be included in the deduction items; if the deduction is not allowed to be calculated in the output tax amount, it can be included in the deduction items. That is: the deduction item includes the value-added tax input tax that cannot be deducted .
4. Calculation of land value-added tax payable
(I) Determination of value-added
1. It is obtained through the deduction and deduction items for transfer income (excluding value-added tax).
2. Use of appraisal price
If a taxpayer has any of the following circumstances, the taxpayer shall calculate and collect it according to the real estate appraisal price: (1) Conceal or falsely report the real estate transaction price; (2) Provide false deduction amount; (3) The transaction price of the transfer of real estate is lower than the real estate appraisal price and there is no legitimate reason.
[Tip] Evaluation price can be evaluated or deducted items.
[Summary] Comparison type - project matching calculation method
In the complex cost and cost project conditions, only the land price and construction costs of the real estate sold (including deemed to be sales, property rights belong to all owners, and free transfer to the government, etc.) can be deducted; the land price and construction costs that have not been developed and developed and unsold cannot be deducted.
This chapter ends here, thank you for reading!
