According to Article 1 1 of the Detailed Rules for the Implementation of the Provisional Regulations on Land Value-added Tax, units and individuals that meet the above-mentioned tax exemption conditions must apply to the tax authorities where the real estate is located, and be exempted from land value-added tax after being audited by the tax authorities.
With reference to the above provisions, land value-added tax shall be exempted if the houses of relocated households need to be demolished due to national construction. After the demolition, the newly-built commercial housing is supplied to the relocated households, and the land value-added tax needs to be paid. Land value-added tax is less than deduction, so there is no need to pay land value-added tax. The income from the sale of houses by non-real estate enterprises shall be calculated and paid according to the value-added amount obtained from the transfer of real estate and the prescribed tax rate.