Tax preferential policies for real estate development enterprises to develop affordable housing
1. Urban land use tax According to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Tax Policies for Affordable Housing and Low-rent Housing Leasing (Caishui [2008] No.24), developers build low-rent housing in affordable housing and commercial housing projects and affordable housing in commercial housing projects. If you can provide relevant materials issued by government departments, you can determine the proportion of the construction area of low-rent housing and affordable housing to the total construction area.
2. Stamp Duty According to the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on the Tax Policy of Affordable Housing and Low-rent Housing Leasing (Caishui [2008] No.24), if a developer is able to provide relevant materials issued by government departments when building low-rent housing in affordable housing and commercial housing projects, it can be exempted from stamp duty according to the proportion of the construction area of low-rent housing and affordable housing to the total construction area. Exempt from stamp duty related to low-rent housing, affordable housing management units and low-rent housing and affordable housing, as well as stamp duty related to low-rent housing tenants and affordable housing buyers;
3. Enterprise Income Tax According to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Printing and Distributing the Measures for the Treatment of Enterprise Income Tax for Real Estate Development and Operation (Guo Shui Fa [2009] No.365438 +0), the taxable gross profit rate of enterprises selling unfinished development products is determined by the state taxation bureaus and local taxation bureaus of provinces, autonomous regions and municipalities directly under the Central Government in accordance with regulations, and it shall not be less than 3% if it belongs to affordable housing, price-limited housing and dangerous houses. When a real estate development enterprise makes an initial tax return on the pre-sale income of affordable housing projects, it must attach documents and other relevant supporting materials approved by relevant departments for the development and sale of affordable housing projects. Where the conditions are not met or the approval documents of relevant departments and other relevant certification materials are not attached, it shall be implemented in accordance with the provisions on the sale of non-affordable housing;
4. According to the Notice of Henan Local Taxation Bureau on Forwarding Land Value-added Tax Liquidation No.202 [20 10], affordable housing is an ordinary standard room with security nature approved by the government. Generally speaking, the value-added is low, and the land value-added tax is levied at the rate of 0.5%. When the land value-added tax is liquidated, the added value shall not exceed 20% of the amount deducted from the project. If the value-added exceeds 20% of the project deduction, the land value-added tax shall be levied according to regulations; If the land value-added tax cannot be accurately settled, the land value-added tax shall be levied at 2% of the ordinary standard room.