Case:
Wang Dacheng intends to open a consulting company, which needs not only funds and personnel, but also business premises.
Therefore, Wang Dacheng decided to invest his own real estate as the subscribed capital in the name of the company. So how to control this behavior of investing in real estate in tax payment?
I. Individual income tax
Does Wang Dacheng need to pay personal income tax if the purchased real estate is valued and invested in the name of the company as the subscribed capital?
Wang Dacheng invested the real estate in the company's name by investing in shares, which is equivalent to exchanging the real estate for the equity of the invested enterprise. Belonging to the paid transfer of real estate, personal income tax should be levied according to the "income from property transfer" project.
However, the income from the transfer of the house that has been used for more than 5 years and is the only living room for the family shall be exempted from personal income tax.
Therefore, if Wang Dacheng invests in real estate, when the transfer occurs, it shall confirm the income from real estate transfer according to the assessed fair value. The balance after deducting the original value of the property and reasonable taxes and fees from the income from property transfer is taxable income, and personal income tax is paid according to the income from property transfer.
However, if Wang Dacheng transfers the house for personal use for more than five years and it is the only living room for the family, it will be exempted from personal income tax.
Second, value-added tax.
Does Wang Dacheng need to pay VAT when he buys his own property as shares and invests it in the company name as subscribed capital?
According to Article 10 of the Pilot Implementation Measures for Changing Business Tax to Value-added Tax: "Selling labor services, intangible assets or real estate means providing labor services with compensation and transferring intangible assets or real estate with compensation."
Article 11 of the pilot implementation measures for changing business tax to value-added tax stipulates: "Remuneration refers to obtaining money, goods or other economic benefits."
Therefore, investing in real estate is equivalent to exchanging real estate for the equity of the invested enterprise and obtaining "other economic benefits", so value-added tax should be paid.
However, if the property contributed by shares is "housing", special treatment shall be made according to the following circumstances:
1. If the property invested in shares is purchased by individuals for less than 2 years, the value-added tax shall be paid in full at the tax rate of 5%;
2. The real estate invested in shares and purchased by individuals for more than 2 years (including 2 years) shall be exempted from value-added tax.
The above policy of 1 and 2 points applies to areas outside Beijing, Shanghai, Guangzhou and Shenzhen.
3. If the property invested in shares is sold as a house purchased for less than 2 years, the value-added tax shall be paid in full at the tax rate of 5%;
4. If the property invested in shares is sold as a non-ordinary house that has been purchased for more than 2 years (including 2 years), the value-added tax shall be paid at the rate of 5% according to the difference between the sales income and the purchase price of the house;
5. If the property invested in shares is an ordinary house purchased for more than 2 years (including 2 years) and sold externally, the value-added tax shall be exempted.
The above 3, 4 and 5 policies are only applicable to Beijing, Shanghai, Guangzhou and Shenzhen.
Three. increment tax on land value
Is it necessary to pay land value-added tax when Wang Dacheng evaluates the purchased property and uses it as the subscribed capital investment in the name of the company?
According to the relevant provisions of the land value-added tax, the units and individuals who transfer the right to use state-owned land, above-ground buildings and their attachments and obtain income are taxpayers of the land value-added tax. The so-called income refers to the transfer of real estate by sale or other means.
Therefore, Wang Dacheng invested the real estate in the company's name by investing in shares, which is equivalent to exchanging the real estate for the equity of the invested enterprise. Belonging to the paid transfer of real estate, land value-added tax should be paid.
However, according to the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Land Value-added Tax Policy for Enterprise Restructuring and Reorganization (Caishui [2015] No.5):
From 20 15 to 20 17 to 20 17 to 20 12 to 3 18, if units and individuals contribute state-owned land and houses in the process of restructuring, land value-added tax will not be levied on enterprises that transfer or change the ownership of state-owned land and houses to the invested enterprises.
That is to say, if Wang Dacheng invests in real estate, the land value-added tax will not be levied during the period from 20 15 1 to 20 17 12 3 1.
At the same time, if the real estate invested in Wang Dacheng is "housing", according to the relevant provisions of the Notice on Adjusting the Tax Policy for Real Estate Transactions (Caishui [2008]137), the land value-added tax will be temporarily exempted for individual housing sales.
Fourth, property tax.
Does Wang Dacheng need to pay property tax when he buys his own property as shares and invests it in the company name as subscribed capital?
According to the relevant provisions of State Taxation Administration of The People's Republic of China's Reply on Several Issues Concerning Anhui Real Estate Tax Business (Guo Fa [1993] No.368).
Property invested in a joint venture shall be treated differently according to the specific circumstances of the joint venture when collecting property tax. For the joint venture of real estate investment, investors participate in the investment profit sharing, and if * * * takes risks, the property tax will be levied according to the original value of the property; If you invest in real estate, collect fixed income and do not bear the risk of joint venture, you will actually get real estate rent in the name of joint venture, and the lessor shall pay property tax according to the rental income in accordance with the relevant provisions of the Provisional Regulations on People's Republic of China (PRC) Property Tax.
Therefore, how to pay the property tax on the property invested by Wang Dacheng depends on the form of the investment contract signed by Wang Dacheng. There are differences in property tax payment under different forms.
V deed tax
Wang Dacheng bought his own property as shares and invested it as subscribed capital in the company's name. How to pay the deed tax?
According to the relevant provisions of deed tax:
1. The transfer of land and house ownership between the same natural person and its sole proprietorship enterprise or one-person limited liability company is exempt from deed tax.
2. Individual industrial and commercial households transfer the ownership of houses and land under their personal names to individual industrial and commercial households, or individual industrial and commercial households transfer the ownership of houses and land under their names back to the original operators' personal names, which shall be exempted from deed tax.
A partner of a partnership enterprise transfers the ownership of the house and land under its name to the partnership enterprise, or the partnership enterprise transfers the ownership of the house and land under its name back to the original partner's name, which is exempt from deed tax.
Therefore, Wang Dacheng will invest his own real estate in the name of his own company, which is exempt from deed tax.
Intransitive verb land use tax
Wang Dacheng bought his own property at a fixed price and invested it in the company's name as subscribed capital. Does the property need to pay land use tax?
According to Article 2 of the Provisional Regulations on Urban Land Use Tax, units and individuals who use land in cities, counties, towns and industrial and mining areas are taxpayers of urban land use tax and shall pay land use tax in accordance with the provisions of these regulations.
In addition, according to the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China on the Interpretation and Interim Provisions on Several Specific Issues Concerning the Issuance of Land Use Tax ((KLOC-0/988) Guo Shui Di ZiNo. 15), the tax exemption or exemption scope of land use tax for individual-owned residential houses and courtyard land shall be determined by the tax bureaus of provinces, autonomous regions and municipalities directly under the Central Government.
So, 1. If the real estate invested by Wang Dacheng is not a house, it is necessary to pay the land use tax in accordance with the relevant provisions of the land use tax. 2. If the real estate invested by Wang Dacheng is a house and belongs to an enterprise, and it does not meet other relevant provisions on exemption from land use tax, it shall go through the registration formalities for the change of house ownership transfer, and levy urban land use tax from the month after the real estate ownership registration authority issues the house ownership certificate.
Policy basis
1. Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Individual Income Tax Policies for Personal Non-monetary Assets Investment (Caishui [2015] No.41)
2. Notice of State Taxation Administration of The People's Republic of China on Issues Concerning the Collection of Individual Income Tax on Income from Individual Housing Transfer (Guo Shui Fa [2006] 108)
3. Notice of the Ministry of Finance, the Ministry of State Taxation Administration of The People's Republic of China and the Ministry of Construction on Relevant Issues Concerning the Collection of Individual Income Tax on Personal Income from Housing Sale (Caishuizi [1999] No.278)
4. Notice on Tax Policies for Low-rent Housing, Affordable Housing and Housing Leasing (Caishui [2008] No.24)
5. Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Deed Tax Policy for Restructuring and Reorganization of Enterprises and Institutions (Cai Shui [2012] No.4)
6. Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on the Deed Tax Policy of Enterprise Sale and Leaseback Financing (Cai Shui [2012] No.82).
Seven. stamp tax
Wang Dacheng bought his own property as shares and invested it as subscribed capital in the company's name. How to pay stamp duty?
According to the Provisional Regulations of People's Republic of China (PRC) Municipality on Stamp Duty (the State Council OrderNo. 1 1), the deed of property right transfer is stamped with stamp duty of 0.5‰ according to the amount contained in the deed.
Therefore, Wang Dacheng invested the property it purchased in the company's name at a fixed price. As the subscribed capital, it should pay stamp duty according to the amount specified in the property right transfer document.
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