Legal analysis: first, whether it was approved by the government for the needs of urban planning and national construction; Second, if it belongs to the "urban implementation plan", it is necessary to determine whether it is due to the transformation of the old city or the pollution and disturbance of the people by enterprises (referring to the generation of excessive waste gas, waste water, waste residue and noise, which will harm the life of urban residents to some extent), and the government or relevant government departments will decide to move according to the approved urban plan. In this case, the financial personnel of the enterprise provided the tax administrator with the government's approval documents and specific plans for the transformation of the old city. The compensation income from the relocation of the enterprise can be recognized as the tax-free income of land value-added tax, and the relevant tax reduction and exemption procedures should be handled at the tax authorities.

Legal basis: Regulations on Expropriation and Compensation of Houses on State-owned Land Article 8 In order to safeguard national security and promote national economic and social development and other public interests, if it is really necessary to expropriate houses under any of the following circumstances, the people's government at the city or county level shall make a decision on house expropriation:

(a) the needs of national defense and diplomacy;

(two) the needs of infrastructure construction such as energy, transportation and water conservancy organized and implemented by the government;

(three) the needs of public undertakings such as science and technology, education, culture, health, sports, environmental and resource protection, disaster prevention and mitigation, cultural relics protection, social welfare, and municipal utilities organized and implemented by the government;

(four) the needs of the construction of affordable housing projects organized and implemented by the government;

(five) the needs of the old city reconstruction organized and implemented by the government in accordance with the relevant provisions of the Urban and Rural Planning Law;

(six) the needs of other public interests as prescribed by laws and administrative regulations.