Legal analysis
Land use right refers to the right of state organs, enterprises, institutions, peasant collectives and individual citizens, as well as foreign-invested enterprises with legal conditions, to possess, use, benefit and restrict the disposal of state-owned land or peasant collective land in accordance with legal procedures or agreements. Land use right is a relatively broad concept, and the land here includes the right to use agricultural land, construction land and unused land. The ownership of land belongs to the state, and the right to use land can belong to individuals, but the state can take it back according to law when necessary. Changes in land use rights are also common, but sometimes the state will take them back. The recycling process will also involve taxes. When the taxpayer returns the land use right to the land owner after the land use right has been reclaimed by the state, it belongs to the land user's behavior of returning the land use right to the land owner as long as the official document of the local people's government at or above the county level is issued, regardless of whether the source of funds for land acquisition compensation is government financial funds. According to the notice in the notes of business tax items, business tax is not levied.
legal ground
Article 8 of the Provisional Regulations on Land Value-added Tax in People's Republic of China (PRC) shall be exempted from land value-added tax under any of the following circumstances: (1) Taxpayers build ordinary standard houses for sale, and the value-added amount does not exceed 20% of the deducted project amount; (two) due to the needs of national construction, real estate requisitioned and recovered according to law.
The "ordinary standard residence" mentioned in Item (1) of Paragraph 8 of Article 11 of the Detailed Rules for the Implementation of the Provisional Regulations on Land Value-added Tax in People's Republic of China (PRC) refers to the residence built according to the local ordinary residence standards. Senior apartments, villas, resorts, etc. It does not belong to ordinary standard rooms. The specific boundaries between ordinary standard houses and other houses shall be stipulated by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government. Taxpayers building ordinary standard houses for sale shall be exempted from land value-added tax if the value-added amount does not exceed 20% of the sum of items deducted in Items (1), (2), (3), (5) and (6) of Article 7 of these Rules; If the added value exceeds the sum of deductions by 20%, the total added value shall be taxed according to the regulations.
The real estate requisitioned or recovered according to law for the needs of national construction as mentioned in Item (2) of Article 8 of the Regulations refers to the real estate requisitioned or recovered by the government for the needs of urban planning and national construction. Due to the need of urban planning and national construction, taxpayers who transfer the original real estate by themselves shall be exempted from land value-added tax according to these regulations. Units and individuals that meet the above tax exemption provisions shall apply to the tax authorities where the real estate is located, and shall be exempted from land value-added tax after examination and approval by the tax authorities.