As stipulated in Item (6), (7) and (8) of Article 4 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax, goods produced by ourselves, processed on commission or purchased are provided to other units or individual industrial and commercial households as investment; Distribute the goods produced, processed or purchased by commission to shareholders or investors; Gifts to other units or individuals of self-produced, commissioned or purchased goods are regarded as sales of goods, and value-added tax is levied.
Annex 2 of the Notice on Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2016] No.36) stipulates that in the process of asset reorganization, all or part of the physical assets and their associated creditor's rights, liabilities and labor force will be transferred to other units and individuals by means of merger, division, sale and replacement, among which the real estate involved.
The Announcement on Value-added Tax Related to Taxpayer's Asset Restructuring (State Taxation Administration of The People's Republic of China Announcement No.20113) stipulates that in the process of asset restructuring, taxpayers transfer all or part of physical assets and their associated creditor's rights, liabilities and labor to other units and individuals by means of merger, division, sale and replacement, which does not belong to value-added tax.
The Announcement on Value-added Tax Related to Taxpayers' Asset Restructuring (State Taxation Administration of The People's Republic of China Announcement No.66 of 20 13) stipulates that in the process of asset restructuring, taxpayers will transfer all or part of physical assets and their associated creditor's rights and liabilities for many times, and the final transferee and the labor force recipient are the same unit and individual. The relevant provisions of the Announcement of State Taxation Administration of The People's Republic of China on Value-added Tax Related to Taxpayers' Asset Restructuring (State Taxation Administration of The People's Republic of China Announcement No.201KLOC-0/No.3) are still applicable, in which value-added tax is not levied for multiple transfers of goods.
Under normal circumstances, if the transfer of assets between resident enterprises involves real estate, land use rights, inventory and equipment, the value-added tax will be levied in principle. Therefore, whether the assets are transferred between the parent company and the subsidiary company, the transferor shall pay the value-added tax as fair value of sales goods, real estate and intangible assets; However, if the special conditions stipulated in the tax policy are met, VAT will not be levied.