Q: Our company is an enterprise in Shenyang. We have a piece of land and real estate in Hebei province, and now we are going to transfer it to a local enterprise in Hebei. However, when issuing the "real estate sales invoice", the other party requires our company to pay 25% (transfer income MINUS transfer value) in advance. Is this correct?
A: Article 2 of the Notice of State Taxation Administration of The People's Republic of China on Strengthening and Regulating the Work of Issuing Ordinary Invoices by Tax Authorities stipulates that units and individuals applying for issuing ordinary invoices on their behalf shall apply to the competent tax authorities for issuing ordinary invoices with relevant supporting materials.
(1) All units and individuals that have gone through tax registration shall apply to the competent tax authorities for purchasing and issuing ordinary invoices corresponding to their business scope. However, commercial activities (except catering and entertainment) stipulated in the tax law, such as selling goods, providing taxable services, transferring intangible assets and selling real estate, may apply to the competent tax authorities for issuing ordinary invoices:
1. Although the taxpayer has received and purchased invoices, but the business income temporarily obtained exceeds the scope of use of the received invoices or exceeds the issuance limit of the received invoices, it is necessary to issue invoices;
2. Taxpayers who collect invoices or stop selling invoices according to law by tax authorities need to issue invoices to obtain operating income;
3. Taxpayers from other provinces (autonomous regions and municipalities directly under the Central Government) who come to the region temporarily to engage in business activities shall, in principle, go through the inspection and registration with the tax authorities in the place where they operate with the tax registration management certificate and issue invoices by themselves; If the business volume is really small and the billing frequency is low, you can apply to the tax authorities at the place of business for opening it.
Article 7 stipulates that the state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning may formulate specific implementation measures in accordance with the provisions of this circular and in light of local conditions.
Therefore, for invoicing, provinces can formulate specific implementation measures.
Article 9 of the Notice of Hebei Provincial Local Taxation Bureau on Issues Concerning the Collection of Income Tax on Invoicing (Hebei Local Taxation Letter [2008] 137) stipulates that a taxpayer may not collect enterprise income tax if he provides relevant information when invoicing on his behalf in any of the following circumstances:
(a) the party and government organs that do not pay enterprise income tax shall issue the organization code certificate of the organ;
(2) the certificate of the head office issued by the subordinate institution of the enterprise that pays the enterprise income tax at the local tax authority;
(three) the construction projects across counties (cities, districts) in the province, provide the "certificate of management of going out" and the tax payment certificate of paying enterprise income tax in situ.
(4) Other construction, service, cultural and sports industries and the sale of real estate that need to be exempted or reduced from enterprise income tax or personal income tax when invoicing shall be implemented in accordance with the items and requirements listed in the List of Exemption or Reduction of Income Tax on Invoicing (see Annex).
Article 3 stipulates that taxpayers who collect enterprise income tax through auditing at local tax authorities must collect enterprise income tax in accordance with regulations, and refund more and make up less when settling accounts.
According to the above regulations, if an enterprise does not meet one of the above conditions, it shall pay in advance in the local area according to the regulations of Hebei Province, and refund more and make up less after returning to the place where the enterprise is located.