On the issue of tax exemption for investment or joint venture with real estate. Article 5 of the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Several Issues Concerning Land Value-added Tax (Caishui [26] No.21) stipulates that for investment or joint venture with land (real estate) as a share, all the invested and joint venture enterprises are engaged in real estate development. Or if a real estate development enterprise invests and associates with the commercial housing it has built, the provision of Article 1 of the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Some Specific Issues Concerning Land Value-added Tax (Caishuizi [1995] No.48) that the land value-added tax is temporarily exempted shall not apply.

According to the above provisions, a real estate development enterprise should pay land value-added tax when investing with the commercial housing it has built; If you invest in the construction of non-commercial housing, you will be exempted from paying land value-added tax temporarily.

How can a real estate enterprise determine the income and deduction for its own real estate investment?

Article 3 of the Notice of State Taxation Administration of The People's Republic of China on Issues Related to Land Value-added Tax Liquidation Management of Real Estate Development Enterprises (Guo Shui Fa [26] No.187) stipulates that the income from indirect sales and self-use real estate shall be determined

(1) Real estate development enterprises will use the developed products for employee welfare, incentives, foreign investment, distribution to shareholders or investors, repayment of debts, exchange for non-monetary assets of other units and individuals, etc. When ownership transfer occurs, it shall be regarded as selling real estate, and its income shall be confirmed in the following methods and order:

1. It shall be determined according to the average price of similar real estate sold by the enterprise in the same area and year;

2. It shall be determined by the competent tax authorities with reference to the local market price or evaluation value of similar real estate in the current year.

(2) When a real estate development enterprise converts part of the developed real estate for its own use or for commercial purposes such as rental, if the property rights have not been transferred, land value-added tax will not be levied, and it will not be included in the tax settlement. The corresponding costs and expenses shall not be deducted.

Article 7 of the Notice of Beijing Local Taxation Bureau on Printing and Distributing (Beijing Local Taxation Bureau [28] No.92) stipulates that commercial houses built by real estate development enterprises that have been used for their own use or rented for more than one year and then sold shall pay land value-added tax in accordance with the policies and regulations on the transfer of old houses and buildings. It is no longer included in the scope of land value-added tax liquidation.

The Detailed Rules for the Implementation of the Provisional Regulations on Land Value-added Tax stipulates:

(4) The appraised price of old houses and buildings refers to the price after the replacement cost price assessed by the real estate appraisal agency approved by the government is multiplied by the new discount rate when the used houses and buildings are transferred. The appraised price must be confirmed by the local tax authorities.

(5) Taxes related to the transfer of real estate, Refers to the business tax, urban maintenance and construction tax and stamp duty paid when transferring real estate. The additional education fee paid due to the transfer of real estate can also be deducted as taxes.

According to the above regulations, if a commercial house built by a real estate development enterprise has been used for more than one year and invested abroad, it should be regarded as selling real estate, and the land value-added tax should be paid according to the transfer of old houses. The income should be determined by referring to the market price or evaluation value of similar real estate in the local year. Deduct the replacement cost price assessed by the real estate appraisal agency confirmed by the local tax authorities multiplied by the new discount rate and the taxes related to the transfer of real estate.

How do housing enterprises pay the land value-added tax for their own real estate investment? Whether a real estate enterprise pays land value-added tax on its own property investment mainly depends on whether the property belongs to a commercial house. If so, it needs to pay land value-added tax, and if not, it will be exempted. As for the determination of its income, I won't repeat it here. Let's learn from it above.