It is reported that on 19931February 13, the State Council issued the "Provisional Regulations on Land Value-added Tax of the People's Republic of China". From the actual implementation, the current elements of land value-added tax system are basically reasonable, and the collection and management system is relatively sound. Therefore, it is advisable to keep the current tax framework and tax burden level unchanged as a whole. At the same time, make appropriate adjustments to individual contents that do not meet the requirements of economic and social development and reform.
According to the documents consulted by Viewpoint Real Estate New Media, regarding the scope of taxation, the Regulations stipulate that units and individuals who transfer state-owned land and above-ground buildings and structures and earn income shall pay land value-added tax. On this basis, the "Draft for Comment" will include the assignment and transfer of collective land use rights, buildings on the ground and their attachments (referred to as "collective real estate") in the scope of taxation. At the same time, it is planned to cancel the land appreciation income adjustment fund currently levied on collective real estate, so as to make the collective real estate burden generally stable before and after legislation.
Regarding tax incentives, the Draft for Comment has made appropriate adjustments to individual policies on the basis of continuing the preferential provisions of the Regulations.
First, it has absorbed the provisions of the current preferential tax policies on tax exemption for affordable housing with a value-added rate of less than 20%; The second is to increase other circumstances that authorize the State Council to reduce or exempt land value-added tax; The third is to adjust the tax exemption for ordinary houses with a value-added rate of less than 20% to authorize provincial governments to decide on tax reduction or exemption in light of local conditions; The fourth is to increase the provisions authorizing provincial people's governments to reduce or exempt land value-added tax on collective real estate in areas with underdeveloped real estate market and low land price level.
With regard to the collection management mode, according to the requirements of the CPC Central Committee and the State Council on deepening the "streamline administration, delegate power, strengthen regulation and improve services" reform, the "Draft for Comment" stipulates that real estate development projects should be paid in advance before liquidation, and the current tax authorities should conduct liquidation audit according to the information provided by taxpayers, and adjust the practice that taxpayers engaged in real estate development should complete liquidation on their own, settle the taxes payable or apply for tax refund to the tax authorities.
In addition, in terms of tax rate and tax basis, the "Draft for Comment" continues the provisions of the "Regulations", clarifying that the land value-added tax is still subject to a four-level progressive tax rate, and the tax basis is the value-added amount obtained from the transfer of real estate.
(Source: Viewpoint Real Estate Network)