If the mortgage loan is not in place, the income will be recognized. Where an enterprise sells development products by means of bank mortgage, it shall determine the income according to the price agreed in the sales contract or agreement, and confirm the realization of income on the day when the deposit is actually received, and confirm the realization of income on the day when the bank mortgage loan is transferred.

legal ground

Article 6 of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Printing and Distributing the Measures for Handling Enterprise Income Tax of Real Estate Development Business.

The income obtained by an enterprise through the formal signing of a real estate sales contract or a real estate pre-sale contract shall be recognized as the realization of sales income, as follows:

(1) If the product is sold in a lump sum, the realization of income shall be confirmed on the day when the price is actually received or the evidence (right) to claim the price is obtained.

(2) If the products are sold by stages, the realization of income shall be confirmed according to the price and payment date agreed in the sales contract or agreement. If the payer pays in advance, the realization of income will be confirmed on the actual payment date.

(3) If the developed products are sold by bank mortgage, the income shall be determined according to the price agreed in the sales contract or agreement, and the realization of income shall be confirmed on the day when the down payment is actually received, and the realization of income shall be confirmed on the day when the bank mortgage loan is transferred.