Q: Should the products developed by real estate development enterprises be regarded as sales when they are converted into fixed assets of enterprises? What taxes do you need to pay? Answer: Before the Notice of State Taxation Administration of The People's Republic of China on the Collection of Enterprise Income Tax for Real Estate Development Business (Guo Shui Fa [2006] No.31) was explicitly abolished, the behavior of real estate development enterprises to convert their development products into fixed assets of enterprises should be regarded as sales, and the realization of income (or profit) should be confirmed when the right to use the development products is transferred. (1) Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Issues Related to Defining Article 11 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Business Tax (Caishui [200 1] 160) III. Taxpayers must provide taxable services for their own independent accounting units, transfer intangible assets and sell real estate for independent accounting. Business tax will be levied on all accounts that are kept separately and not accounted for separately. Real estate enterprises will use their own developed properties for office use, and if they are accounted for separately from the sales of developed products, there is no need to pay business tax. (3) The issue of enterprise income tax is regarded as sales according to Guo Shui Fa [2006] No.31,and enterprise income tax is levied. (4) Other tax development enterprises shall pay property tax and land use tax according to relevant laws and regulations after converting the developed products into fixed assets.