Business tax: Notice of State Taxation Administration of The People's Republic of China on Business Tax on the Behavior of Land Users Returning Land Use Rights to Land Owners (Guo Shui Han [2008] No.277) stipulates that when taxpayers return land use rights to land owners, they only need to produce official documents for the local people's governments at or above the county level to recover land use rights, regardless of whether the source of funds paid to land acquisition compensation is government financial funds. This behavior belongs to the land user's behavior of returning the land use right to the land owner. According to the Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing the Notes on Business Tax Items (Trial Draft) (Guo Shui Fa [1993] 149), business tax is not levied.

Land value-added tax: Article 11 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Land Value-added Tax stipulates: Relocation due to the needs of urban implementation planning and national construction, see the compensation method for land expropriation. Or because of the need of urban planning and national construction, the original real estate is transferred by taxpayers themselves, and the land value-added tax is exempted.

Document Caishui [2006] No.21stipulates that Article 11 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Land Value-added Tax refers to the relocation due to "urban implementation planning", which refers to the transformation of the old city or the pollution and disturbance of people by enterprises (refers to the production of excessive waste gas, waste water, waste residue and noise, which makes the life of urban residents suffer certain harm), and the compensation for land expropriation includes The relevant government departments shall determine the relocation situation according to the approved urban planning; Relocation due to "the need of national construction" refers to the relocation due to the implementation of construction projects approved by the State Council, provincial people's governments and relevant ministries and commissions in the State Council.

Enterprise income tax: According to the Notice of State Taxation Administration of The People's Republic of China on Issues Concerning Enterprise Income Tax Treatment from Policy Relocation or Disposal of Enterprises (Guo Shui Han [2009] 1 18), the income from policy relocation and disposal of enterprises refers to policy reasons such as government urban planning and infrastructure construction. Enterprises need to relocate (including partial relocation or partial demolition) or dispose of related assets as a whole, and the income from relocation compensation or disposal of related assets obtained from the government according to the prescribed standards, as well as the income from land use right transfer obtained through the market (bidding, auction, listing, etc.). Income from policy relocation or disposal of enterprises shall be treated as follows:

(1) If an enterprise, according to the relocation plan, resumes its original production and business operations after reconstruction in different places, and uses its relocation or disposal income to purchase or build new fixed assets and land use rights (hereinafter referred to as replacement of fixed assets) with the same or similar properties and uses as before relocation, or to improve other fixed assets, or to carry out technical transformation, or to resettle employees, the balance of its relocation or disposal income after deducting the expenses for replacement or improvement of fixed assets, technical transformation and employee resettlement shall be included in the taxable income of the enterprise.

(2) If the enterprise has no plan or project report for replacing or improving fixed assets, technological transformation or purchasing other fixed assets, it should include the relocation income plus the sale income of various types of demolition fixed assets, minus the residual value of various types of demolition fixed assets and disposal expenses, and calculate and pay enterprise income tax in the current year.

⑶ Fixed assets purchased or improved by enterprises with the income from policy relocation or disposal can be depreciated or amortized according to the current tax regulations and deducted before enterprise income tax.

(4) If the relocation income or disposal income of the enterprise is not included in the taxable income of the enterprise in the current year within five years from the next year of the planned relocation, and the relocation income of the enterprise is completed within five years, it shall be handled according to the above provisions.