Article 12 of the Measures for the Treatment of Enterprise Income Tax in Real Estate Development Business (Guo Shui Fa [2009] No.31) stipulates that the expenses incurred by enterprises during the period, the taxable cost of selling development products, business tax and surcharges, and land value-added tax are allowed to be deducted in the current period according to regulations. Your first understanding is correct.
State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) 20 1 1/03/22
Whether the unpaid land value-added tax liquidation business tax of real estate development enterprises can be deducted involves relevant tax policies and practices.
Problems needing attention
1. Taxes and basic provisions involved in the development and sale of commercial housing by real estate development enterprises:
(Note: 1, commercial housing sales include: houses, commercial houses, other buildings, attachments, supporting facilities, etc. 2. Taxes involved include business tax, enterprise income tax, personal income tax and land value-added tax)
(1) business tax
-Basic regulations
Business tax payable = sales revenue × tax rate
1, sales revenue confirmation:
(1), if the developed product is sold at one time, the realization of income shall be confirmed when the price is actually received or the evidence (right) to claim the price is obtained.
(2) If the products are sold by stages, the realization of income shall be confirmed according to the payment date agreed in the sales contract or agreement. If the payer pays in advance, the realization of income will be confirmed on the actual payment date.
(3) If the development products are sold by bank mortgage, the down payment shall be confirmed on the actual receipt date, and the balance shall be confirmed on the transfer date of the bank mortgage loan.
(4) If the sales and development of products are entrusted, the realization of income shall be confirmed according to the following principles:
(1) If the commission is paid to sell the developed products, the realization of the income shall be confirmed according to the actual sales when the sales list of the entrusting unit is received.
(2) If the product is commissioned by the way of deemed buyout, the realization of income shall be confirmed at the price agreed in the contract or agreement upon receipt of the entrustment form from the entrusting unit.
(3) If the product is commissioned to be underwritten, the realization of income shall be confirmed on the payment date according to the price agreed in the underwriting contract or agreement.
If the underwriter pays in advance, the realization of income will be confirmed on the actual payment date.
(4) If the base price (guaranteed reserve price) is adopted, and the products entrusted for development are sold in a way that both parties share more than the base price, the realization of income shall be confirmed when the consignment list of the entrusted unit is received.
The entrusting party and the receiving party shall settle the list of developed and sold products on a monthly or quarterly basis. The list of developed products sold shall indicate the name, geographical location, number, quantity, unit price, amount, handling fee, etc.
(5) If the developed products are rented first and then sold, the realization of income shall be confirmed according to the following principles:
(1) If the development products for sale are converted into operating assets and leased out by means of operating lease or financial lease before sale, the price obtained during the lease period shall be recognized as the realization of income according to the rent, and then recognized as sales dysentery when sold.
(2) If the development products for sale are rented out by means of temporary lease, the price obtained during the lease period shall be recognized as the realization of income according to the rent, and the realization of income shall be recognized according to the sales of the development products in the future.
(6) If the income is obtained in the form of non-monetary asset sharing, the realization of the income shall be confirmed when the development products are distributed.
2. Confirmation as sales revenue:
(1) The following acts shall be regarded as sales confirmation income:
① Use the developed products for personal use, donation, sponsorship, advertising, samples, employee welfare, rewards, etc. ;
(two) the development of products into operating assets;
③ Distribute the developed products to shareholders or investors as foreign investment;
(4) Developing products to pay off debts;
⑤ Exchange the development of production for non-monetary assets of other enterprises, institutions and individuals.
(2) Time limit for revenue recognition of deemed sales behavior: deemed sales behavior should recognize the realization of revenue when the ownership or use right of the development product is transferred, or when the income right is actually obtained.
Note: Pre-sale income = sales income
Policy = mastery of implementation
3. Tax rate: 5%
-Available tax policies
Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Some Policy Issues of Business Tax (Caishuizi [2003] No.016)
Units and individuals selling or transferring purchased real estate and acquired land use rights shall take the balance of total income minus the original price of purchased real estate or land use rights as turnover.
Note: Income from the sale or transfer of land use rights-the original price of the purchase or transfer of land use rights can be taxed according to the tax item of the transfer of intangible assets.
Real estate completed projects or real estate projects under construction-the original purchase or transfer of real estate, business tax can be levied according to the real estate tax items sold.
(B), corporate income tax
-Basic regulations
Payable enterprise income tax = taxable profit × tax rate (33%)
1, Confirmation of taxable income:
(1), revenue recognition is the same as sales revenue of business tax.
(2) Confirmation of pre-sale income of developed products. If a real estate development enterprise sells its development products by way of pre-sale, its current pre-sale income shall be calculated according to the stipulated profit rate, incorporated into the current taxable income, and enterprise income tax shall be uniformly calculated and paid, and settlement adjustment shall be made when the development products are completed.
Estimated operating profit = income from pre-sale development products × profit rate
The profit rate of pre-sale income shall not be less than 15% (inclusive).
2. Deduction of costs and expenses
(1), sales cost: The sales cost of development products allowed to be deducted by real estate development enterprises in the current period refers to the cost of development products that have been sold, which is confirmed according to the saleable area and the unit project cost of saleable area in the current period. The unit project cost and sales cost of the usable area are calculated and determined according to the following formula:
Usable area unit project cost = total cost of cost object ÷ total usable area.
Cost of sales = saleable area × unit project cost of saleable area.
(2) Compensation for land acquisition and demolition and supporting fees for public facilities; Product parts development and product facilities and equipment maintenance fees; Land idle fees and depreciation fees, etc.
(3) Sales expenses, management expenses and financial expenses; Among them, the borrowing costs incurred by real estate development enterprises to borrow funds for the construction and development of products, if they occur before the completion of the cost object, should be included in the cost object according to the actual cost ratio; If it happens after the completion of the cost project, it should be deducted directly before tax as a financial expense. The advertising fee is deducted by 8% of the operating income, and the excess can be carried forward to the next year indefinitely, and deducted according to the prescribed standards.
-determine the collection method
According to the current tax policy, there are two ways to collect enterprise income tax: audit collection and verification collection.
1 A real estate development enterprise that adopts the method of audit collection should meet the following conditions: set up account books, conduct accounting, prepare and submit accounting statements regularly, truly reflect the income, costs, expenses and profits and losses of the enterprise, and accurately calculate various taxable amounts.
2. Conditions that a real estate development enterprise adopting the approved expropriation method should meet: (1), account books may not be set according to the provisions of tax laws and regulations, or account books shall not be set according to the provisions of tax laws and regulations; (2) Only the total income can be accurately accounted for, or the total income can be verified, but its costs and expenses cannot be accurately accounted for; (3) Only the costs and expenses can be accurately accounted for, or the costs and expenses can be verified, but the total income cannot be accurately accounted for; (4) It is difficult to provide true, accurate and complete tax information to the competent tax authorities because the total income and costs cannot be correctly accounted; (5) Failing to keep relevant account books, vouchers and relevant tax payment materials as required, although the account setting and accounting are in compliance with the regulations; (6) Failing to file tax returns within the time limit prescribed by tax laws and regulations, or failing to file tax returns within the time limit ordered by the tax authorities.
-Available strategies
Notice of People's Republic of China (PRC) State Taxation Bureau on Printing and Distributing the Interim Measures for the Verification and Collection of Enterprise Income Tax
Archives show that the profit rate of real estate development enterprises is 10%-20%.
1, the enterprise income tax of real estate development industry that implements the approved collection method adopts fixed collection, namely:
Payable enterprise income tax = (sales income+pre-sale income+other income) ××××× approved sales profit rate×× enterprise income tax rate.
2. The taxpayer's annual loss can be made up by the income of the next year. If the income of the next year is insufficient, it can continue to make up for it year by year, and the longest time for making up for it is no more than 5 years. (only applicable to enterprises that collect audit)
3. Taxpayers' property losses in the course of production and operation within a tax year are allowed to be deducted before paying enterprise income tax after being examined or approved by the tax authorities. (only applicable to enterprises that have passed the audit)
(3) Personal income tax
-Basic provisions:
1, wage and salary income items
(1) Income from wages and salaries refers to the remuneration, wages and salary income obtained by individuals working in government organs, organizations, schools, military units, enterprises, institutions and other organizations. The income from wages and salaries includes all kinds of bonuses, year-end salary increase, labor dividends, double salaries, allowances and subsidies, etc., in addition to the wages and salaries obtained through monthly payment. Quota award; Attendance award; Special industry allowances and subsidies; Allowances and subsidies in special fields; Food subsidies, communication subsidies, transportation subsidies, etc.
(2) Calculation method:
Personal income tax payable = (income -880 yuan-items allowed to be deducted by tax law) × applicable tax rate-quick deduction.
Tax rate: 5% to 45% is applicable to the nine-level excess progressive tax rate.
2. Interest, dividends and bonus income items
(1) Income from interest, dividends and bonuses refers to the income from interest, dividends and bonuses obtained from personal creditor's rights and equity.
Personal income tax shall be levied on income from interest, dividends and bonuses, and the income obtained at the time of payment shall be calculated at one time.
(2) Calculation method:
Personal income tax payable = taxable income x applicable tax rate
The tax rate is 20%.
(4) Land value-added tax
-Basic regulations
1, premonition rate
Land value-added tax should be levied in advance in real estate development Taxpayers who obtain the income from pre-sale house payment shall declare and pay taxes on a monthly basis. After the final accounts of the project are completed, apply to the competent tax authorities for final settlement, and the tax payable shall be settled by the competent tax authorities. The specific collection ratio is as follows:
(1) Taxpayers pre-sell ordinary standard rooms, with a pre-requisition rate of 0.5%;
(2) Taxpayers pre-sell other commercial houses, including hotels, restaurants, office buildings and non-pre-sale ordinary standard houses, villas and high-grade apartments. , the prerequisitioned rate is 2%;
(3) For simple land transfer, the pre-requisition rate is 3%;
(4) If non-real estate development enterprises and units transfer real estate or real estate development enterprises transfer stock houses, the pre-requisition rate is 2%.
Pre-levied land value-added tax = pre-sale income x applicable pre-levy rate
2, tax links and collection methods
Land value-added tax is levied in the transfer of state-owned land use rights, underground real estate and buildings. Generally, two methods are adopted:
(1) For real estate development projects, taxes shall be levied first, then settled, and more refunds shall be made and less subsidies shall be made.
(2) For old houses and buildings, land value-added tax will be levied during the transfer process.
3. Preferential policies for land value-added tax
(1) If the taxpayer builds ordinary standard houses for sale, the land value-added tax shall be exempted if the value-added tax does not exceed 20% of the deducted project amount.
(2) Real estate requisitioned and reclaimed according to law for the needs of national construction.
4. Problems that should be paid attention to in practice
(1) Determination of ordinary standard houses
At present, ordinary standard rooms in Wuhan are temporarily implemented according to the following standards: a single set of commercial housing with a construction area of less than 5,500 yuan/square meter or a single set of commercial housing with a total sales price of less than 700,000 yuan. Senior apartments, villas, conjoined villas, resorts and villages are not ordinary standard rooms.
(2) Taxpayers should separate ordinary standard houses from other commercial houses when accounting for real estate costs. If it is not accounted for separately, it will not enjoy preferential treatment.
The above standards have been implemented since March 1 2004, and will be fixed every two years thereafter.
(3) Because the calculation requirements and methods of taxable income of land value-added tax are different from those of enterprise income tax, taxpayers may not have the value-added amount calculated by themselves, but the tax authorities have the value-added amount when calculating. The main problem is that in the calculation of real estate development costs, land value-added tax is allowed to be collected according to the regulations before income tax, but only according to a certain proportion.
What is the pre-tax deduction range of land value-added tax? According to the Provisional Regulations on Land Value-added Tax and its detailed rules for implementation, the items that the tax law allows taxpayers to deduct when calculating the land value-added amount mainly include four aspects: first, the land acquisition cost, that is, the land price paid for obtaining the land use right and the related expenses paid in accordance with the unified provisions of the state; Second, the cost of real estate development, that is, the cost of developing land and building new houses and supporting facilities, including the actual compensation for land acquisition and demolition, preliminary engineering costs, construction and installation costs, infrastructure costs, public facilities costs and indirect development costs of taxpayers' real estate development projects; Third, the cost of real estate development, that is, the cost of land development and new houses and supporting facilities, including sales costs, management costs and financial costs related to real estate development projects; Fourth, taxes related to the transfer of real estate, including business tax, urban maintenance and construction tax and stamp duty paid by taxpayers when transferring real estate, and educational surcharge paid by taxpayers when transferring real estate, can all be regarded as tax deduction. In addition, the detailed rules for the implementation of land value-added tax also stipulate that enterprises engaged in real estate development are allowed to deduct the sum of the amount paid when obtaining the land use right and the real estate development cost by 20%.