I. Business Tax The Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Business Tax on Equity Transfer (Caishui [2002] 19 1No.) stipulates that if intangible assets or real estate are invested in shares and participate in the profit distribution of the transferee, business tax will not be levied. Therefore, the parent company will take the land use right as the investment share, participate in the profit distribution of the investors, share the investment risks together, and do not levy business tax. Two. Land Value-Added Tax Article 1 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Some Specific Issues Concerning Land Value-Added Tax (Caishuizi [1995] No.48) stipulates that if real estate is used for investment and joint venture, when the investor or joint venture invests with land (real estate) as a fixed-price share or transfers the real estate to the invested or joint venture, the land value-added tax will be temporarily exempted. Article 5 of the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Some Issues Concerning Land Value-added Tax (Cai Shui [2006]2 1No.) stipulates that the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Some Specific Issues Concerning Land Value-added Tax does not apply to investment or joint ventures with land (real estate), enterprises engaged in real estate development with investment or joint venture, and real estate development enterprises with investment or joint venture in commercial housing. Therefore, if the subsidiary does not engage in real estate development, the parent company will transfer the land use right. If a subsidiary engages in real estate development, the parent company shall follow the provisions of Article 7 of the Provisional Regulations on Land Value-added Tax and 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 Outline of Land Value-added Tax (Guo Fa [1995] 1 10): "(1) The right to use land or real estate is transferred without development. If cultivated land is converted into cultivated land, when calculating the value-added amount, it is allowed to deduct the land price paid when obtaining the land use right, the related expenses paid, the expenses required for land development, plus 20% of the development expenses and the taxes paid in the transfer link. " And other relevant regulations. Article 36 of the Law on the Administration of Tax Collection stipulates that the business dealings between enterprises or institutions and places engaged in production and business operations established by foreign enterprises in China and their affiliated enterprises shall be charged or paid according to the business dealings between independent enterprises; The tax authorities have the right to make reasonable adjustments if the amount of taxable income or income is reduced without collecting or paying the price or expenses according to the business dealings between independent enterprises. According to the above regulations, the parent company shall pay the land value-added tax according to the regulations. If the parent company invests in its subsidiaries according to the land cost price, it can be considered as not charging or paying the price and expenses according to the business dealings between independent enterprises, and the tax authorities can reasonably adjust the tax payable. Three. Enterprise income tax Article 13 of the Detailed Rules for the Implementation of the Enterprise Income Tax Law stipulates that the amount of income obtained by an enterprise in non-monetary form as mentioned in Article 6 of the Enterprise Income Tax Law shall be determined according to its fair value. The fair value mentioned in the preceding paragraph refers to the value determined according to the market price. Article 2 of State Taxation Administration of The People's Republic of China's Notice on Handling Income Tax on Assets Disposed by Enterprises (Guo [2008] No.828) stipulates that if the ownership of assets is changed for other purposes, it does not belong to internal disposal of assets, and the income shall be determined as sales according to regulations. Article 3 stipulates that the sales income of self-made assets of enterprises shall be determined according to the external sales price of similar assets of enterprises in the same period when the circumstances specified in Article 2 of this notice occur; For assets that belong to outsourcing, sales revenue can be determined according to the price at the time of purchase. According to the above provisions, the parent company invests in its subsidiaries with land use rights, and the transfer of land use rights by the parent company shall be regarded as sales; The parent company should invest in its subsidiaries at the cost price of the purchased land. Unless the acquired land is purchased externally, the sales revenue can be determined according to the price at the time of purchase. According to Article 41 of the Enterprise Income Tax Law, if the business dealings between affiliated enterprises do not conform to the principle of independent transactions, and the taxable income or income of enterprises or affiliated parties is reduced, the tax authorities have the right to make adjustments in a reasonable way. According to Article 8 of the Enterprise Income Tax Law, the cost, tax and other expenses of land acquisition by the parent company can be deducted before tax. If the original book value balance of the land use right to be contributed by the parent company is 6,543,800,000 yuan, the estimated value increase is 50,000,000 yuan, and the fair value confirmed by both parties is 50,000,000 yuan; Then the enterprise should confirm the asset transfer income of 40 million yuan and pay enterprise income tax according to law. Four. Stamp duty is from June 27, 2006, 165438+, and stamp duty is paid to those who sign the land use right transfer contract after investment. The tax rate is five ten thousandths. Article 3 of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Several Policies of Stamp Duty (Caishui [2006]162) stipulates that stamp duty shall be levied on the land use right transfer contract and the land use right transfer contract signed according to the property right transfer document. According to the above provisions, the transfer of land use rights involved in the parent company's investment contract should be stamped with the "certificate of property right transfer". 5. Deed tax The deed tax shall be paid in accordance with the provisions for the act of investing in shares with the right to use state-owned land. The deed tax rate is 3-5%. Article 8 of the Detailed Rules for the Implementation of the Provisional Regulations on Deed Tax in People's Republic of China (PRC): If the ownership of land and houses is transferred in the following ways, it will be deemed as the transfer of land use rights, the sale of houses or the donation of houses, and tax will be levied: (1) The ownership of land and houses will be used as the price to invest in shares.