1, Land VAT Related Policy Documents (all here)
- Land VAT Document Collection (1994-2019)
- Interim Regulations on Land VAT of the People's Republic of China
- Interim Regulations on Land VAT of the People's Republic of China
- National Tax Hanfa [1995] No. 110 (Land VAT Promotion Outline)
- National Tax Fa [2006] 1 No. 87 (Real Estate Development Enterprise Land Value-added Tax Clearing )
- Guoshufa [2009] No. 91 ("Land VAT Liquidation Management Regulations")
- Tax General Letter [2016] No. 309 (Revised Land VAT Tax Return)
- Anhui Provincial Taxation Bureau Announcement No. 21 of 2018 (Revised Anhui Province Land VAT Liquidation Management Measures)
2. Mind Map
(I) Taxpayer
The taxpayer of land value-added tax is the unit and individual who transfers state-owned land use rights, buildings and their attachments for a fee. Including all types of enterprises, institutions, institutions, social groups, individual industrial and commercial households, as well as other units and individuals.
Key points: State-owned land use rights (collectively not expropriated), paid (inheritance or gift, no expropriation), transfer (investing without expropriation), and also applicable to foreign-related enterprises, units and individuals.
(II) Tax object
The tax object of land value-added tax is the value-added amount obtained by transferring state-owned land use rights, buildings and their attachments on the ground. The value-added amount is the balance after the income from the taxpayer's transfer of real estate is reduced to the amount of deducted items stipulated in the Regulations.
(III) Tax rate
Land value-added tax adopts a progressive tax rate of four-level over-rate, with the lowest tax rate being 30% and the highest tax rate being 60%. The over-rate progressive tax rate is based on the relative rate of the amount of the tax object as the progressive basis, and the applicable tax rate is calculated and determined according to the over-cash method. When determining the applicable tax rate, it is first necessary to determine the relative rate of the amount of the tax object. That is, the ratio of the value-added amount to the deducted project amount (value-added rate) is divided into 4 levels from low to high: that is, the part whose value-added amount does not exceed 50% of the deducted project amount; the part whose value-added amount exceeds 50% of the deducted project amount and does not exceed 100%; the part whose value-added amount exceeds 100% of the deducted project amount and does not exceed 200%; the part whose value-added amount exceeds 200% of the deducted project amount, and tax rates of 30%, 40%, 50%, and 60% shall be applied respectively. The proportion of the amount of the deducted item in each level of land value-added tax level 4 over-rate progressive tax rate that does not exceed the amount of the deducted project in each level includes this proportion.
(IV) Recognition of income
1. Income includes the total price of the transfer of real estate and related economic benefits, not only refers to monetary income.
What are the tax calculation matters for real estate assessment?
During taxation, real estate assessment is required for the following situations:
(1) Selling old houses and buildings;
(2) Concealing or falsely reporting the real estate transaction price;
(3) Providing the amount of deduction of the project is false;
(4) The transaction price of the transfer of real estate is lower than the real estate appraisal price, and there is no legitimate reason.
2. Article 1 of the "Notice of the State Administration of Taxation on Issues Related to Land Value-added Tax Liquidation" (State Taxation No. [2010] No. 220) stipulates that when land value-added tax is liquidated, income shall be recognized according to the amount stated in the invoice; if no invoice is issued or full invoice is issued, income shall be recognized according to the amount stated in the sales contract signed by the parties to the transaction. If the area of the commercial housing contained in the sales contract is inconsistent with the actual measured area of the relevant departments, and if the compensation or withdrawal payment has occurred before liquidation, it should be adjusted when calculating the land value-added tax .
3. According to Article 1, paragraph 1 of the "Announcement of the State Administration of Taxation on Several Regulations on the Collection and Administration of Land Value-added Tax after the VAT Reform" (Announcement No. 70 of the State Administration of Taxation 2016), after the VAT Reform, after the VAT Reform, the taxable income of the land value-added tax transferred by the taxpayer does not include value-added tax.
According to Article 3 of the Ministry of Finance and the State Administration of Taxation on the basis of tax calculation of taxation after the VAT reform, property tax, land value-added tax, and personal income tax" (Finance and Taxation [2016] No. 43), the income obtained by land value-added tax taxpayers to transfer real estate is excluding value-added tax income.
(V) Deduction amount
1. The amount paid to obtain the land use right.
2. Real estate development cost
Including land expropriation and demolition compensation, preliminary project fees, construction and installation project fees, infrastructure fees, public facilities supporting fees, and development indirect costs. These costs are allowed to be deducted by the actual amount incurred.
Note: According to Article 5 of the "Announcement of the State Administration of Taxation on Several Provisions of Land Value-Added Tax after the VAT Reform of VAT (Announcement of the State Administration of Taxation No. 70, 2016), after the VAT Reform of VAT Reform, the VAT invoices obtained by land value-added taxpayers receiving construction and installation services should be in accordance with the "Announcement of the State Administration of Taxation on the Comprehensive Improving the Pilot of Business Taxation of VAT Reform of VAT Related Tax Collection and Management Matters" (Announcement of the State Administration of Taxation No. 23, 2016), the name of the county (city, district) and the name of the project where the construction service occurred shall be indicated in the remark column of the invoice, otherwise the amount of the land value-added tax deduction project shall not be included in the amount of the land value-added tax deduction project.
3. Real estate development expenses
refers to sales expenses, management expenses, and financial expenses.
(1) Interest expenses in financial expenses can be calculated and allocated according to the transfer real estate project and provided with financial institution certificates, which are allowed to be deducted based on actual conditions, but the maximum amount calculated based on the interest rate of the same loan of the commercial bank for the same period cannot be exceeded. Other real estate development expenses are calculated and deducted within 5% of the sum of the amount paid for obtaining the land use right and the real estate development costs.
(2) If the financial institution cannot provide proof, the interest will not be deducted separately. The deduction of the three expenses is calculated based on the amount paid for obtaining the right to use and the real estate development cost within 10% of the amount paid.
The specific ratio of deductions shall be stipulated by the people's governments of each province, autonomous region, and municipality directly under the Central Government.
4. Evaluation price of old houses and buildings.
refers to the price of the replacement cost assessed by the real estate appraisal agency approved by the government when transferring used houses and buildings, and is confirmed by the local tax authorities referring to the evaluation of the appraisal agency.
According to Article 2, paragraph 1 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning Land Value-Added Tax" (Finance and Taxation [2006] No. 21), if a taxpayer transfers old houses and buildings, but cannot obtain the appraisal price but can provide a home purchase invoice, the amount of deductions stipulated in Article 6, Article 6, Article (I) and (III) of the Regulations can be calculated based on the amount contained in the invoice and additional 5% per year from the purchase year to the transfer year. For deed tax paid by taxpayers when purchasing a house, any deed tax payment certificate that can provide deed tax payment certificate, it will be deducted as "tax related to the transfer of real estate", but it will not be used as an additional 5% base.
5. Taxes related to the transfer of real estate
refers to business tax, urban maintenance and construction tax, and stamp duty paid when transferring real estate. Educational surcharges paid for transfer of real estate can also be deducted as taxes. Note that VAT does not include VAT after the VAT reform.
6. Other deduction items stipulated by the Ministry of Finance
(1) Additional deductions. For taxpayers engaged in real estate development, a 20% deduction may be added to the sum of the amount paid for obtaining the land use right and the cost of real estate development.
(2) Deduction of collection fees. For the various expenses required by the people's government at or above the county level to collect in the era of selling houses, if the collection fee is included in the house price and collected from the purchaser, it can be taxed as the income obtained from the transfer of real estate; if the collection fee is not included in the house price and is collected separately from the house price, it can be not used as the income from the transfer of real estate.If the collection fee is taxed as the transfer income, it may be deducted when calculating the amount of the deduction, but it is not allowed to be used as the base for additional 20% deduction; if the collection fee is not taxed as the income from the transfer of real estate, the collection fee is not allowed to be deducted when calculating the added value.
(VI) Main tax reduction and exemption policies
1. The value-added rate of sales of ordinary housing does not exceed 20% is exempt from land value-added tax
According to the provisions of the " Interim Regulations on Land Value-added Tax" and the "Implementation Rules for the Interim Regulations on Land Value-added Tax", if the taxpayer builds ordinary standard residential housing for sale, and the value-added rate does not exceed 20%, the land value-added tax will be exempt from land value-added tax. Ordinary standard residence refers to residential residences built according to the standards of general civil residences in the place.
Advanced apartments, villas, resorts, etc. are not ordinary standard residences. According to the provisions of the "Notice of the General Office of the State Council forwarding the Opinions of the Ministry of Construction and other departments on Doing a Good Job in Stabilizing Housing Prices" (Guobanfa [2005] No. 26), ordinary standard residential buildings should also meet: the building floor area ratio of residential communities is above 1.0; the single building area is below 120 square meters; the actual transaction price is below 1.2 times the average transaction price of housing on land of the same level.
The specific standards for ordinary housing in provinces, autonomous regions, and municipalities can be appropriately increased, but not exceed 20% of the above standards. The first two conditions are easier to confirm. The problem now lies in the determination of the third condition: that is, the actual transaction price is less than 1.2 (1.44) times the average transaction price of housing on land of the same level. However, most county-level tax authorities at present do not have this announcement or notice of "average housing transaction price on land of the same level" for reference.
For taxpayers who build both ordinary standard residential buildings and engage in other real estate developments, the added value should be calculated separately. If the value-added amount is not calculated separately or the value-added amount cannot be accurately calculated, this tax exemption provision cannot be applied to the ordinary standard residential buildings they are built.
2. For individuals selling housing, they are exempt from land value-added tax
According to Article 12 of the "Implementation Rules of the Interim Regulations of the People's Republic of China", if an individual transfers his original self-use housing due to work transfer or improvement of living conditions, after reporting and approval to the tax authorities, those who have lived for five years or more will be exempted from land value-added tax; if they have lived for three years or less than five years, the land value-added tax will be levied at half the price. If you live for less than three years, land value-added tax will be levied according to regulations.
According to the provisions of the Ministry of Finance and the State Administration of Taxation on some specific issues of land value-added tax" (Finance and Taxation No. [1995] No. 48), if individuals exchange real estate for their own residential use, they can be exempted from land value-added tax after verification by the local tax authorities.
According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting Tax Policies in Real Estate Transactions" (Finance and Taxation [2008] No. 137), land value-added tax is temporarily exempted from the levy of individual housing sales. That is, housing sold by individuals, whether it is ordinary or non-ordinary housing, whether it is the first house or two or more houses, will be exempt from land value-added tax. Note: For residences owned by individuals, other real estate owned by individuals, such as shops, office buildings, garages, and individually transferred basements, they are not subject to tax exemption.
3. Situation of exemption from land value-added tax for government relocation
If the compensation income obtained by the government's real estate expropriated or recovered in accordance with the law due to the needs of national construction or relocated due to the needs of urban planning and national construction, and the taxpayer transfers the original real estate by itself, the land value-added tax will be exempted.
According to Article 8 of the "Interim Regulations on Land Value-added Tax", real estate that is expropriated or recovered in accordance with the law due to national construction needs is exempt from land value-added tax. Article 11 of the "Implementation Rules for the Interim Regulations on Land Value-added Tax" further stipulates that the so-called real estate that is requisitioned and recovered in accordance with the law due to the needs of national construction refers to the property or land use rights approved by the government for the needs of urban planning and national construction.
"Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning Land Value-Added Tax" (Finance and Taxation [2006] No. 21) stipulates that "urban implementation planning" refers to the relocation of old cities or due to enterprise pollution and disturbance of the people (referring to the generation of excessive waste gas, waste water, waste slag and noise, causing certain harm to the lives of urban residents), and the government or relevant government departments determine the relocation based on the approved urban planning; "needs of national construction" refers to the relocation of construction projects approved by the State Council, provincial people's government, and relevant ministries and commissions of the State Council.
Units and individuals that meet the above tax exemption regulations must submit tax exemption applications to the tax authority where the real estate is located. After review by the tax authority, they will be exempted from land value-added tax.
4. Units transfer old houses as public rental housing and the value-added rate does not exceed 20% for land value-added tax
According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Tax Preferential Policies for Public Rental Housing" (Finance and Taxation [2015] No. 139), if enterprises, institutions, social groups and other organizations transfer old houses as public rental housing and the value-added amount does not exceed 20% of the deduction project, land value-added tax is exempted. Public rental housing that enjoys the above tax preferential policies refers to public rental housing development plans and annual plans approved by the people's governments of provinces, autonomous regions, municipalities directly under the Central Government, municipalities with independent planning status and the Xinjiang Production and Construction Corps, and is managed in accordance with the "Guiding Opinions on Accelerating the Development of Public Rental Housing" (Jianbao [2010] No. 87) and the specific management measures formulated by municipal and county people's governments. The implementation period of this preferential policy is from January 1, 2016 to December 31, 2018.
5. If the old house is transferred as affordable housing and the value added does not exceed 20% of the deducted project amount, the land value added tax is exempted
According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policies on Shantytown Renovation" (Finance and Taxation [2013] No. 101), if the old house is transferred as renovation and resettlement housing and the value added does not exceed 20% of the deducted project amount, the land value added tax is exempted.
6. Land value-added tax is not currently levied for enterprise mergers and reorganizations
According to the provisions of the "Notice on Continuing Implementation of Land Value-added Tax Policies on the Reform and Reorganization of Enterprises" (Finance and Taxation [2018] No. 57), non-company enterprises are reorganized into limited liability companies or joint-stock companies, and limited liability companies (collective companies) are reorganized into joint-stock companies (collective companies). For enterprises before the reorganization, land value-added tax is not currently levied for enterprises that transfer or change state-owned land use rights, buildings and their attachments (hereinafter referred to as real estate) to enterprises after the reorganization. If two or more enterprises merge into one enterprise in accordance with the law or the contractual provisions, and the original enterprise investment entity continues to exist, land value-added tax will not be levied for the enterprises in which the original enterprise transfers or changes the real estate to the merged enterprise. According to the law or the contractual agreement, enterprises are divided into two or more enterprises with the same investment entities as the original enterprise. Land value-added tax will not be levied for the time being for the original enterprise to transfer or change real estate to the separation of enterprises. When restructuring and reorganizing, units and individuals invest in real estate at the price, and land value-added tax will not be levied for the time being for the transfer and change of real estate to the invested enterprises. The above-mentioned land value-added tax policy for restructuring and restructuring is not applicable to the situation where either party to transfer real estate is a real estate development company. The same investment entities and investment entities as stated in this notice means that the investor does not change before and after the enterprise restructuring and restructuring, and the investment ratio of the investor may change; the investment entity shall survive, which means that the investor must exist in the enterprise after the restructuring and restructuring, and the investment ratio of the investor may change. The implementation period is from January 1, 2018 to December 31, 2020.
7. For self-use, land value-added tax is temporarily exempted from the levy of land value-added tax
According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Some Specific Issues of Land Value-added Tax" (Financial and Taxation No. [1995] No. 48), if one party releases the land and the other party provides funds, and both parties cooperate to build the house. After completion, the house is divided into proportion and use it for self-use, the land value-added tax is temporarily exempted; if it is transferred after completion, the land value-added tax should be levied.
8. Revoked financial institutions exempt from land value-added tax for repaying debts
According to the provisions of the Ministry of Finance and the State Administration of Taxation on Tax Policy Issues of Revoked Financial Institutions" (Finance and Taxation [2003] No. 141), financial institutions and branches of local areas that have been revoked by the People's Bank of China in accordance with the law, including commercial banks, trust investment companies, financial companies, financial leasing companies, urban credit cooperatives and rural credit cooperatives that have been revoked in accordance with the law, shall be exempt from land value-added tax for real estate transfers by the revoked financial institutions when the property of the revoked financial institutions is used to repay debts. Unless otherwise specified, the abolished financial institutions and affiliated enterprises do not enjoy preferential policies for exemption from land value-added tax.
9. Asset management companies are exempt from land value-added tax for disposing of real estate
According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policy Issues in China's Cinda and 4 Financial Asset Management Companies" (Financial and Taxation [2001] No. 10), land value-added tax is exempt from land value-added tax for the income obtained by Cinda, Huarong, Great Wall and Oriental Asset Management Companies in transferring real estate. The entities that enjoy tax preferential policies are China Cinda Asset Management Company, China Huarong Asset Management Company, China Great Wall Asset Management Company and China Oriental Asset Management Company, which are approved by the State Council, and their branches located in various places. Unless otherwise specified, the asset company's affiliated and affiliated enterprises do not enjoy the tax preferential policies of the asset company.
10. According to Article 1, Paragraph 8 of the "Notice of the Ministry of Finance, the State Administration of Taxation, and the General Administration of Customs on the Tax Policy of the 2022 Winter Olympics and Paralympics in Beijing" (Finance and Taxation [2017] No. 60), the income from the donated items obtained by the Beijing Winter Olympic Organizing Committee for reselling donated items and assets transferred after the competition will be exempted from the land value-added tax.
According to the provisions of the "Notice on Tax Policy of the 7th World Military Games" (Finance and Taxation [2018] No. 119), the income obtained by the Wuhan Military Games Executive Committee after the game is exempted from the land value-added tax that should be paid.
11. According to Article 4 of the "Announcement on Tax Preferential Policies for Public Rental Housing" (Announcement by the Ministry of Finance and the State Administration of Taxation No. 61, 2019), if enterprises, institutions, social groups and other organizations transfer old houses as public rental housing sources, and the value-added amount does not exceed 20% of the deduction project amount, land value-added tax will be exempted.
(VII) Collection and management
1. Taxpayers who transfer real estate and obtain income shall go through the tax procedures according to the following procedures:
(1) On the 7 days after the real estate transfer contract is signed, the taxpayer will go to the tax authority where the real estate is located to handle the tax declaration, and submit to the tax authority the property rights of the house and building, land use rights certificate, land transfer, real estate sale contract, real estate appraisal report and other information related to the transfer of real estate.
For taxpayers who are difficult to declare after each transfer due to frequent real estate transfers, they can make regular tax declarations after review and approval by the tax authorities. The specific period shall be determined by the tax authorities based on the situation.
Taxpayers who pre-sale commercial housing must also go to the tax authority to file a record within 7 days of signing the pre-sale contract and provide relevant information.
(2) The tax authorities shall determine the taxable amount and stipulate the tax payment period based on the taxpayer's declaration. For some assessments, taxpayers are required to conduct assessments first, and then confirm the assessment price based on the assessment results.
According to the 16th and provisions of the Ministry of Finance and the State Administration of Taxation on some specific issues of land value-added tax (Financial and Taxation No. [1995] No. 48), the tax payment period approved by the tax authorities should be after the taxpayer signs the real estate transfer contract and before the real estate ownership transfer (i.e., transfer and registration) procedures are completed.
Note: There is a very obvious difference between land value-added tax and other tax types lies in the fact that the tax authorities need to review and confirm the amount of land value-added tax.
(3) The taxpayer pays land value-added tax in accordance with the tax amount approved by the tax authority and the prescribed period.
2. The tax authorities may pre-exist on land value-added tax for income obtained by taxpayers transferring real estate before the project is completed and settled. Taxpayers shall prepay land value-added tax in accordance with the period and tax amount stipulated by the tax authority.
The basis for pre-collecting land value-added tax: "Announcement of the State Administration of Taxation on Several Regulations on the Collection and Administration of Land Value-added Tax after the VAT Reform" (Announcement of the State Administration of Taxation No. 70, 2016) stipulates that in order to facilitate taxpayers and simplify the calculation of land value-added tax pre-collecting tax, if real estate developers sell real estate projects developed by themselves in advance, they can calculate the basis for pre-collecting land value-added tax in accordance with the following methods:
The basis for pre-collecting land value-added tax pre-collecting land value-added tax is as follows:
The basis for pre-collecting land value-added tax pre-collecting land value-added tax
According to the Ministry of Finance Article 3, Paragraph 2 of the State Administration of Taxation on Several Issues Concerning Land Value-Added Tax (Finance and Taxation [2006] No. 21) stipulates that if taxes are not paid in advance within the pre-cash period, a late payment fee shall be charged from the day after the expiration of the specified tax payment period in accordance with the relevant provisions of the Tax Collection and Administration Law and its implementation rules.
3. Liquidation
According to Article 3 of the State Administration of Taxation on Issuing the Management Regulations for Land Value-Added Tax Clearing and Management Regulations (GuoShifa [2009] No. 91), the land value-added tax liquidation referred to in the "Regulations" refers to the act of taxpayers who calculate the land value-added tax amount to be paid by real estate development projects in accordance with tax laws, regulations and relevant land value-added tax policies and regulations after meeting the conditions for land value-added tax liquidation, and fill out the "Land Value-added Tax Clearing Form", provide relevant information to the competent tax authority, handle land value-added tax liquidation procedures, and settle the land value-added tax tax that should be paid by the real estate project.
Article 9 stipulates that if a taxpayer meets one of the following conditions, he shall liquidate the land value-added tax.
(I) All real estate development projects are completed and sold;
(II) The overall transfer of unfinished real estate development projects;
(III) The direct transfer of land use rights.
Article 10 For those who meet one of the following conditions, the competent tax authority may require the taxpayer to conduct land value-added tax liquidation.
(I) The transferred real estate development project has been completed and accepted, the proportion of the transferred real estate building area accounts for more than 85% of the saleable building area of the entire project, or although the proportion has not exceeded 85%, the remaining saleable building area has been rented or used for its own use;
(II) The sales (pre-sale) license has not been completed after three years of obtaining the sales (pre-sale) license;
(III) The taxpayer applies for cancellation of tax registration but has not completed the land value-added tax liquidation procedures;
(IV) Other circumstances stipulated by the tax authorities of provinces (autonomous regions, municipalities directly under the central government, and municipalities with independent planning status).
For the circumstances listed in the preceding paragraph (3) of the situation listed in the preceding paragraph, land value-added tax should be liquidated before the cancellation registration is processed.
Article 11 For items that comply with Article 9 of this regulation and that land value-added tax should be liquidated, the taxpayer shall go to the competent tax authority to complete the liquidation procedures within 90 days from the date of meeting the conditions. For items that comply with Article 10 of these regulations, the tax authorities may require taxpayers to liquidate land value-added tax, the competent tax authority shall determine whether to perform liquidation; for items that are determined to be liquidated, the competent tax authority shall issue a liquidation notice, and the taxpayer shall complete the liquidation procedures within 90 days from the date of receiving the liquidation notice.
If a taxpayer who should conduct land value-added tax liquidation or a taxpayer determined by the competent tax authority to conduct liquidation refuses to liquidate or does not provide liquidation information within the time limit specified above, the competent tax authority may handle it in accordance with the relevant provisions of the "Tax Collection and Administration Law of the People's Republic of China".
According to Article 8 of the State Administration of Taxation on Issues Related to the Liquidation and Management of Land Value-Added Tax in Real Estate Development Enterprises (GuoShefa [2006] No. 187), if real estate not transferred after liquidation is processed, if real estate not transferred during the liquidation of land value-added tax is sold or transferred for a fee, the taxpayer shall make a tax declaration of land value-added tax in accordance with regulations, and the amount of deducted project is calculated based on the unit construction area cost expenses at the time of liquidation multiplied by the sales or transfer area.
Unit construction area cost expense = total amount of deducted items at the time of liquidation ÷ total construction area
According to Article 8 of the "Notice of the State Administration of Taxation on Issues Related to Land Value-Added Tax Liquidation" (State Taxation Letter [2010] No. 220), if the taxpayer prepaid the land value-added tax in accordance with the regulations, the land value-added tax that is paid in liquidation within the time limit stipulated by the competent tax authority, no late payment fee will be charged.
According to Article 12 of the "Interim Regulations on Land Value-added Tax of the People's Republic of China", if the taxpayer fails to pay land value-added tax in accordance with these regulations, the land management department and the real estate management department shall not go through the relevant ownership change procedures.
Exception: According to Article 1 of the "Announcement of the State Administration of Taxation on Issues Related to Deed Tax Tax Response" (Announcement of the State Administration of Taxation No. 67 of 2015), if the land and house ownership transfer occurs according to the effective legal documents of the People's Court and the Arbitration Committee, and the taxpayer cannot obtain the invoice for the sale of real estate, he may apply for the deed tax tax declaration with the original and relevant materials of the People's Court's execution ruling and the tax authority shall accept it. Article 2 stipulates that when a taxpayer who purchases a newly built commercial housing, when applying for a deed tax declaration, the taxpayer shall accept the tax invoice after verifying the relevant situation because the real estate development company selling a newly built commercial housing has cancelled the tax registration or is listed as an abnormal household by the tax authority.
Three . Case analysis
Type 1: Real estate development company transfers real estate
In 2018, a real estate development company developed an office building for sale, with a total sales revenue of 20 million yuan, paid 4 million yuan in the land price (including deed tax) of the office building, paid 1 million yuan in demolition compensation during the development process, 800,000 yuan in water and power supply infrastructure fees, 5.2 million yuan in construction projects, 5 million yuan in loans from financial institutions during the development process, with a loan term of 1 year, and an annual interest rate of 5% in financial institutions. The total management expenses and sales expenses incurred during construction and sales totaled RMB 2.6 million. The company paid stamp duty, urban maintenance and construction tax, and education surcharges for sales of office buildings totaling 1.1 million yuan. Calculate the amount of land value-added tax that the company should pay for in this project.
(I) Income of 20 million
(II) Deduction of
1. The amount paid for obtaining the land use right = 4 million (million yuan)
2. Real estate development cost = 1 million yuan + 800,000 yuan + 5.2 million yuan = 7 million (million yuan)
3. Real estate development expenses = 800,000 (million yuan), among which:
(1) Interest expenses = 500*5% = 25 (million yuan)
(2) Others = (400+700)*5% = 55 (million yuan) (management expenses and sales expenses cannot be deducted according to facts)
4. Tax = 1.1 million (million yuan)
4. Tax = 1.1 million (million yuan)
0 2. 5. Additional deduction = 1100*20%=220 (10,000 yuan)
Total deduction amount = 400+700+80+110+220=1510 (10,000 yuan)
(III) Value-added amount = 2000-1510=490 (10,000 yuan)
(IV) Tax rate
Value-added amount/deducted amount = 490/1510=32%50% Therefore, the applicable tax rate is 30%
(V) Tax amount
The land value-added tax amount should be paid = 490*30%=147 (10,000 yuan)
Land Value-added Tax Tax Return (II)
(Applicable to taxpayer liquidation engaged in real estate development)
Type 2: Transfer of real estate by non-real estate enterprises
An industrial enterprise transferred a factory built in the 1990s, and the cost was 1 million yuan at that time, and the land use rights were obtained free of charge. If the materials and labor costs of the current market price are calculated, it will cost 6 million yuan to build the same house, and the house is 70% new, and it will be sold at 5 million yuan, with a total of 275,000 yuan paid. Calculate the land value-added tax that an enterprise should pay for transferring old houses.
Analysis: For sale of old houses and buildings, first calculate and determine the amount of deduction based on the assessed price and relevant factors, and then calculate the taxable amount according to the above methods. The specific calculation steps are:
1. Calculate the evaluation price. The formula is:
Evaluation price = Reset cost price × New degree discount rate
2. Collect the deduction of the project amount.
3. Calculate the value-added rate.
4. Determine the applicable tax rate based on the value-added rate.
5. Calculate the taxable amount based on the applicable tax rate.
Tax payable = value-added amount × applicable tax rate - deducted item amount × quick deduction coefficient
(1) Evaluation price = 600×70% = 420 (10,000 yuan)
(2) Allowed tax deductions 275 (10,000 yuan)
(3) Total deduction amount = 420+27.5=447.5 (10,000 yuan)
(4) Value-added amount = 500-447.5=52.5 (10,000 yuan)
(5) Value-added rate = 52.5÷447.5×100% = 11.73%
(6) Tax payable = 52.5×30% - 447.5×0=15.75 (10,000 yuan)
Type 3: Invoice deduction method for personal transfer shops
Wang transferred a store in September 2017, with a transfer price of 10 million yuan. The house was purchased by Wang on November 1, 2011. The invoice showed that the purchase price was 4 million yuan. The corresponding deed tax payment voucher showed that Wang paid deed tax of 120,000 yuan. How much is the land value-added tax that Wang should pay? (This case is adapted from "One Book of Property Conduct Taxation")
Analysis: (I) Taxable income
1. Value-added tax payable = (1000-400) ÷ (1+5%) × 5% = 285,700 yuan)
2. Taxable income
According to Article 3 of the Ministry of Finance and the State Administration of Taxation on the basis of tax calculation of taxation after the VAT reform, Real Estate Tax, Land Value-added Tax, Personal Income Tax, and Personal Income Tax (Finance and Taxation [2016] No. 43), the income obtained by land value-added taxpayers to transfer real estate is excluding value-added tax income. If the value-added tax input tax amount involved in land value-added tax deduction items stipulated in the "Interim Regulations of the People's Republic of China" and other aspects is allowed to calculate the deduction amount in the output tax amount, it will not be included in the deduction item, and if the deduction amount is not allowed to be calculated in the output tax amount, it can be included in the deduction item.
Taxed income = 1000-28.57=971.43 (10,000 yuan).
(II) The original value of the real estate can be deducted
According to Article 2, paragraph 1 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning Land Value-Added Tax" (Finance and Taxation [2006] No. 21), if a taxpayer transfers old houses and buildings, but cannot obtain the appraised price but can provide a home purchase invoice, the amount of deduction items stipulated in Article 6, Article 6, Article (I) and (II) of the Regulations can be calculated based on the amount contained in the invoice and additional 5% per year from the purchase year to the transfer 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.
The original value of the real estate can be deducted = 400+400×6×5%=520 (10,000 yuan)
(III) Taxes related to the transfer of real estate
1. The total urban construction tax 7%, education surcharge (3%), and local education surcharge (2%) = 28.5714×12%=343 (10,000 yuan);
2. The deed tax paid at the time of purchase is 120,000 yuan. What is allowed to deduct is the deed tax paid by the original real estate owner Wang when he purchased it at that time, rather than the deed tax paid by the transferee during this transfer;
3. Assuming that stamp duty issues at each link are not considered, the local tax authorities stipulate that education surcharges can be deemed to be deducted as taxes. The tax related to the transfer of real estate is 3.43+12=1543 (10,000 yuan);
(IV) The amount of deductible item = the original value of the real estate can be deducted + the tax related to the transfer of real estate =520+15.43=535.43 (10,000 yuan).
(V) Value-added amount = taxable income - deducted amount of items = 971.43-535.43=436 (10,000 yuan);
(VI) Value-added rate = value-added amount ÷ deducted amount = 436÷535.43=81.43%
(VII) Land value-added tax payable = 436×40%-535.43×5%=147.63 (10,000 yuan).
Type 4: Land value-added tax sales or paid transfer
The total sales area of project A developed by A Real Estate Development Company is 45,000 square meters. As of the end of November 2017, the sales area was 40,500 square meters, and 405 million yuan of revenue excluding value-added tax was obtained; the total deduction amount of the project when calculating the land value-added tax was 290.1375 million yuan; the remaining 4,500 square meters of houses have not been sold. In November 2017, the competent tax authority required the real estate development company to conduct land value-added tax liquidation on Project A. At the end of February 2018, the company packaged the remaining 4,500 square meters of houses and collected RMB 43.2 million in revenue excluding value-added tax. Calculate that the sales business of Company A should be subject to land value-added tax after liquidation.
Analysis: Taxpayers should make tax declarations for land value-added tax in accordance with regulations, and the amount of deducted projects is calculated based on the unit building area cost and expenses at the time of liquidation multiplied by the sales or transfer area.
Unit construction area cost and expense = total amount of deducted items at liquidation ÷ total construction area liquidation
1. Unit construction area cost and expense of 4500㎡ houses sold in packaged and sold in packaged = 29013.75÷40500 = 0.72 (10,000 yuan)
2. Land value-added tax of 4500㎡ houses sold in packaged and sold in company:
(1) Deduction items = 0.72×4500 = 3240 (10,000 yuan)
(2) Value-added amount = 4320-3240 = 10.80 (10,000 yuan)
(3) Value-added rate = 1080 ÷3240×100% = 33.33%
０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ ０ � (4) Land value-added tax should be paid = 1080×30% = 324 (10,000 yuan)
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