Investing companies use land use rights to invest in shares. According to the "Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment" on long-term equity investment, it is clearly stipulated that investment must be distinguished between investing companies and invested companies. The two situations are handled separately.

Unit receiving land use rights (invested enterprise):

Debit: intangible assets - land use rights

Credit: paid-in capital

Investment enterprise:

Borrow: long-term equity investment

Loan: intangible assets - land use rights

Investment with land use rights mainly involves value-added tax , corporate income tax, land value-added tax, urban construction tax, stamp duty, education surcharge and local education surcharge.

The accounting entries are as follows:

Debit: long-term equity investment

Credit: intangible assets - land use rights

Taxes payable - Value-added tax payable (output tax)

Debit: taxes and surcharges

Credit: taxes payable-land value-added tax payable

-should Urban construction tax payable

-Education surcharge payable

-Stamp tax payable

Debit: income tax expense

Debit: tax payable Fees - corporate income tax payable

Transaction tax deduction regulations

1. Stamp tax

The stamp tax paid on the sale of real estate development products is a tax related to the transfer of real estate. , be deducted. The stamp duty paid for purchasing land shall be regarded as "relevant fees paid in accordance with unified national regulations" and shall be deducted from the "amount paid to obtain land use rights". The stamp duty paid for signing contracts and accounting books for purchasing building materials and other items is included in administrative expenses and has been deducted accordingly, but it is not a tax related to the transfer of real estate.

2. Investment value-added tax and surcharges

Investments in land use rights will be treated as sales according to the assessed price, and the corresponding value-added tax and surcharges will be calculated.

According to the provisions of the State Administration of Taxation's "Notice on Issuing the Publicity Outline of Land Value-Added Tax" (Guo Shui Han Fa [1995] No. 110), when calculating the specific value-added amount, attention should be paid to:

First, for land or real estate use rights that are transferred without development after being acquired, when calculating the value added, only the land price paid when acquiring the land use rights, relevant fees paid, and taxes paid during the transfer process are allowed to be deducted . The purpose of such regulations is mainly to curb the behavior of "speculation" buying and "speculation" selling land. Obviously, there is no provision for super deductions in this case.

Second, for those who invest funds after acquiring the land use rights and transfer the raw land into mature land, when calculating the value added, the land price paid when acquiring the land use rights, relevant fees paid, and development expenses are allowed to be deducted. The cost of the land plus 20% of the development cost and the tax paid during the transfer process. This provision is to encourage investors to invest more funds in real estate development. Taxpayers should note that although super deductions are allowed in this case, when calculating the super deduction items for the transfer of land use rights, only the development costs will be super deducted, and the land cost price will not be super deducted. This is a land investment and there is no additional deduction.