Jiangxi Provincial State Taxation Bureau:
Your request for instructions on whether to levy value-added tax on the transfer of all property rights of Shangyou Jiangshui Power Plant by Jiangxi Electric Power Company (No.88 [2002] of Jiangxi State Administration of Taxation) has been received. After study, we hereby reply as follows:
According to the Provisional Regulations of the People's Republic of China on Value-added Tax and its detailed rules for implementation, the scope of collection of value-added tax is to sell goods or provide processing, repair and replacement services and import goods. The transfer of all property rights of an enterprise is an act of transferring the assets, creditor's rights, debts and labor force of the enterprise as a whole. Therefore, the transfer of taxable goods involved in the transfer of all property rights of an enterprise does not fall within the scope of VAT taxation, and VAT is not levied.
And State Taxation Administration of The People's Republic of China Announcement (20 1 1)No. 13, all or part of the transfer of property rights must include the corresponding creditor's rights, liabilities and labor behavior.
Therefore, your unit is not an overall acquisition.
The transfer unit shall pay value-added tax (used machinery and equipment), business tax (housing and land), various business taxes, surcharges and income tax respectively according to the transferred assets.
The invoice shall be issued by the acquired enterprise.
Generally, the VAT rate is 17%, the business tax rate is 5% for the sale of real estate and intangible assets, and the income tax rate is 25%. The legal basis is the provisional regulations on VAT and business tax, the enterprise income tax law and other laws and regulations.