Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on levying enterprise income tax on real estate development business
Guo Shui Fa [2006] No.365438 +0
State Taxation Bureau and Local Taxation Bureau of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning:
In order to strengthen and standardize the management of enterprise income tax collection of real estate development enterprises, according to the Provisional Regulations of People's Republic of China (PRC) Municipality on Enterprise Income Tax and its implementing rules, the Law of People's Republic of China (PRC) Municipality on Tax Collection and Management and other relevant laws and regulations, combined with the operating characteristics of real estate development enterprises (hereinafter referred to as development enterprises), we hereby notify the relevant enterprise income tax issues on real estate development as follows:
I. Tax Treatment of Unfinished Development Products
If the development products such as houses, commercial houses and other buildings, attachments and supporting facilities developed and built by development enterprises are sold in the form of pre-sale before completion, the pre-sale income will be calculated quarterly (or monthly) according to the estimated taxable gross profit margin, and will be included in the current taxable income after deducting the relevant period expenses, business tax and surcharges, and will be adjusted after the taxable cost of the development products is settled. ?
(a) affordable housing projects must comply with the provisions of the Ministry of construction, the National Development and Reform Commission, the Ministry of Land and Resources, and the People's Bank of China "Notice on Printing and Distributing the Measures for the Administration of Affordable Housing" (J.Z.F. [2004] No.77) and other relevant laws and regulations, and the taxable gross profit margin of its pre-sale income shall not be less than 3%. When the development enterprise makes the initial tax declaration on the pre-sale income of affordable housing projects, it must attach the approval documents of relevant departments and other relevant certification materials. Anyone who does not meet the requirements or does not attach the approval documents of relevant departments and other relevant certification materials shall pay enterprise income tax according to the provisions on the sale of non-economic applicable housing.
(two) the estimated taxable gross profit rate of non-affordable housing development projects is determined according to the following provisions:
1. If the development project is located in the urban areas and suburbs where the people's governments of provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning are located, it shall not be less than 20%. ?
2. Development projects located in the urban areas and suburbs of prefecture-level cities shall not be less than 15%.
3. Development projects located in other areas, not less than 10%.
Two, about the tax treatment of finished products.
(a) meet one of the following conditions, as the development of products has been completed:
1. Development products whose completion certificate has been reported to the real estate management department for the record (cost object);
2. Development products that have been put into use (cost objects); ?
3. Development products (cost objects) that have obtained the initial title certificate.
(2) After the development of products is completed, the development enterprise shall reasonably recognize the pre-sale income as the actual sales income according to the nature of income, the sales method and the principle of income recognition, and carry forward the corresponding taxable costs according to the regulations to calculate the gross profit of the actual sales income of the development products. The difference between the gross profit of the actual sales income of the developed products and the gross profit of the pre-sale income is included in the taxable income of the completed year. If the taxable cost of the developed products is not settled in accordance with the provisions in the completion year, or the difference between the actual total sales revenue and the total pre-sale revenue is not adjusted, the competent tax authorities have the right to determine or verify the taxable cost, make corresponding tax adjustments, and deal with it according to the relevant provisions of the People's Republic of China (PRC) Tax Collection and Management Law. ?
(three) after the completion of product development, the development enterprise shall report its completion to the competent tax authorities before the annual tax return. Development enterprises shall, when filing annual tax returns, issue tax assessment reports on the adjustment of the difference between the actual sales gross profit and the pre-sale gross profit of development products by relevant institutions, as well as other relevant materials required by tax authorities. ?
The assessment report of the above-mentioned difference adjustment basically includes: the geographical location and general situation of the development project, the area occupied, the development purpose, the initial development time, the completion time, the saleable area and the sold area, the pre-sale income and its gross profit, the actual sales income and its gross profit, the development cost and its actual sales cost, etc.
(four) the scope of sales revenue of developed products is the total price obtained in the process of selling developed products, including cash, cash equivalents and other economic benefits. All kinds of funds, fees and surcharges collected by development enterprises on behalf of relevant departments, units and enterprises shall be fully recognized as sales income if they are included in the price of development products or invoiced by development enterprises; If the invoice is not included in the price of the developed product and is issued by other departments and units other than the development enterprise, it can be managed as the money collected and remitted.
(5) The sales revenue of developed products shall be confirmed in accordance with the following provisions:
1. If the products developed are sold at one time, the realization of income shall be confirmed on the day 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 price and 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 developed products are sold by bank mortgage, the income shall be determined according to the price agreed in the sales contract or agreement, and the realization of income shall be confirmed on the day when the deposit is actually received, and the realization of income shall be confirmed on the day when the bank mortgage loan is transferred.
4. The realization of income shall be confirmed in accordance with the following principles if the products are commissioned to be sold and developed:
(1) If the sales of developed products are entrusted by paying the handling fee, the realization of income shall be confirmed at the price agreed in the sales contract or agreement on the day when the list of developed products sold by the entrusted party is received.
(2) If the development enterprise entrusts the sales of the development products in the way of deemed buyout, it belongs to the sales contract or agreement signed by the development enterprise and the buyer, or the sales contract or agreement signed by the development enterprise, the trustee and the buyer. If the price agreed in the sales contract or agreement is higher than the buyout price, the price calculated according to the price agreed in the sales contract or agreement shall be confirmed on the day when the list of development products sold by the trustee is received; If the price agreed in the sales contract or agreement is lower than the buyout price in the first two cases, and the Consignee signs a sales contract or agreement with the Buyer, the revenue will be confirmed on the day when the list of products sold and developed by the Consignee is received. ?
(3) If the reserve price (guaranteed reserve price) is adopted and the developed products are sold by both parties, it is a sales contract or agreement signed by the development enterprise and the buyer, or a sales contract or agreement signed by the development enterprise, the trustee and the buyer. If the price agreed in the sales contract or agreement is higher than the base price, the price calculated according to the price agreed in the sales contract or agreement shall be confirmed on the day of receiving the list of developed products sold by the trustee for development. If the price agreed in the sales contract or agreement is lower than the base price, the realization of income shall be confirmed on the day when the price calculated by the trustee according to the base price is received. If the consignee directly signs a sales contract with the purchaser, the realization of income shall be confirmed according to the base price plus the share obtained according to the regulations on the day when the list of products sold and developed by the consignee is received. ?
(4) If the products are developed on a commission basis, the realization of income can be confirmed by referring to the above (1) to (3) according to the relevant provisions of the underwriting contract during the underwriting period; For the development products that have not been sold after the expiration of the underwriting period, the development enterprise shall confirm the realization of income according to the price and payment method agreed in the underwriting contract or agreement. ?
The list of developed products sold shall specify the name, geographical location, number, quantity, unit price, amount, handling fee, etc. of the developed products sold, and the settlement period shall be monthly or quarterly, and the tax declaration and tax payment shall be made to the tax authorities within the prescribed time limit. Those who fail to settle accounts, declare taxes and pay taxes in advance on schedule shall be dealt with in accordance with the relevant provisions of the Law of People's Republic of China (PRC) Municipality on the Administration of Tax Collection. ?
5. If the development enterprise rents the developed products first and then sells them, and the developed products are converted into fixed assets, the price obtained during the lease period is recognized as the realization of income according to the rent, and then the realization of income is recognized according to the sales of fixed assets at the time of sales; If the developed products are not converted into fixed assets, the price obtained during the lease period is recognized as the realization of income according to the rent, and then the realization of income is recognized according to the sales of the developed products at the time of sale.
III. Confirmation of pre-lease income of development products.
The development enterprise has not completed the newly-built development products, or signed a lease appointment agreement with the lessee before completing the initial registration of real estate and obtaining the property right certificate. From the date when the developed product is delivered to the lessee for use, the pre-lease price obtained by the lessor is recognized as the realization of income according to the rent, and the pre-lease fee paid by the lessee is deducted before tax according to the rental fee.
Four, on the tax treatment of cooperative construction and development products.
Development enterprises cooperate with other enterprises, units and individuals to develop real estate projects with their own enterprises as the main body. If there is no independent legal person company in the project, it shall be handled in accordance with the following provisions:
(1) If the development contract or agreement stipulates to distribute the development products to all investors, and the taxable cost of the project has been settled when the development enterprise distributes the development products for the first time, the difference between the taxable cost of the development products that should be distributed to investors (i.e. cooperation and joint ventures, the same below) and its investment amount shall be included in the taxable income of the current period; If the taxable cost is not settled, the investor's investment amount will be treated as pre-sale income for relevant tax treatment.
(two) if the development contract or agreement stipulates the profit distribution of the project, it shall be handled in accordance with the following provisions:
1. The development enterprise shall incorporate the project operating profit into the taxable income of the current period, uniformly declare and pay enterprise income tax, and shall not distribute the project profit before tax. At the same time, it cannot be amortized in the cost or deducted from the relevant interest expenses before tax because of accepting the investment from the investor. ?
2. Investors who make profits from the operation of the project shall be deemed to have made dividends and bonuses, and shall pay enterprise income tax according to the regulations on the basis of the certificate issued by the competent tax authorities of the development enterprise. ?
Five, on the tax treatment of land use rights investment and development projects.
(a) enterprises and units to develop products, land use rights into real estate development projects, in accordance with the following provisions:
1. When enterprises and units acquire development products for the first time, they should divide them into two economic businesses: transferring land use rights and purchasing development products for income tax treatment, and calculate and confirm the gains or losses of land use rights transfer according to the fair market value of development products (including those acquired for the first time and those acquired later) that should be acquired in this project. ?
2. The developer who accepts the land use right should divide it into two economic businesses (including the development products that should be distributed for the first time and the development products that should be distributed later) and purchase the land use right at the fair market at the sales value for income tax treatment, and include the value of the land use right in the project cost. ?
(two) enterprises and units in the form of equity land use rights into real estate development projects, in accordance with the following provisions:
1. When an investment transaction occurs, the enterprise or unit shall divide it into two economic businesses: selling non-monetary assets and investing for income tax treatment, and calculate and confirm the gains or losses from asset transfer. ?
If the above-mentioned income from the transfer of land use rights accounts for more than 50% of the taxable income in the current year, the taxable income in each year can be spread evenly according to the five tax years from the year when the investment transaction takes place. ?
2. When an investment transaction occurs, the developer who accepts the land use right can calculate and confirm the cost of the land use right according to the above investment transaction amount, and include it in the cost of developing products.
Six, on the development of products as sales tax treatment.
The development enterprise's behavior of converting the developed products into fixed assets or using them for donation, sponsorship, employee welfare, reward, foreign investment, distribution to shareholders or investors, repayment of debts, and exchange of non-monetary assets for other enterprises, institutions and individuals shall be regarded as sales, and the realization of income (or profit) shall be confirmed when the ownership or right to use the developed products is transferred or the rights and interests are actually obtained. The method and order of confirming income (or profit) are:?
(a) according to the enterprise in recent months or this year in recent months to determine the market sales price of similar products; ?
(two) determined by the competent tax authorities with reference to the fair market value of similar local products; ?
(three) determined by the cost profit rate of the developed products. The cost profit rate of developed products shall not be less than 15%, and the specific proportion shall be determined by the competent tax authorities.
Seven, the tax treatment of construction projects and the provision of labor services.
(1) If the development of the enterprise's agent construction project and the provision of labor services do not exceed 65,438+02 months, the realization of income can be confirmed according to the price settlement date agreed in the contract or the contract completion date; If the duration exceeds 12 months, the percentage of completion method can be used to confirm the realization of income quarterly.
The percentage of completion method is to confirm the income and expenses in the same proportion according to the completion progress of the contract. The completion schedule can be determined according to the proportion of accumulated actual contract cost to total estimated contract cost, the proportion of completed contract workload to total estimated contract workload and the measurement of completed contract workload. ?
(2) If the materials, scraps, scrapped projects or product scraps saved by the development enterprise in the process of building and providing labor services are left to the development enterprise according to the contract, the realization of income shall be confirmed at the fair market transaction price at the time of actual acquisition.
Eight, about the deduction of the cost of developing products.
When accounting and deducting costs and expenses, development enterprises must distinguish the boundaries between period cost and development product cost, accounting cost and tax cost of development products, tax cost of sold development products and tax cost of unsold development products according to regulations.
(a) the development enterprise shall, in the settlement of the taxable cost of the developed products, handle it in accordance with the following provisions:
1. All expenses incurred during the construction of development products, which actually occur in the current period, shall be included in the cost object according to the accrual principle; If it has not happened in the current period but should be borne by the current period, it shall not be included in the current cost object except for those that can be included in the current cost object according to tax regulations. ?
2. To develop products, we should reasonably divide the cost objects according to general business practices and accounting practices, and at the same time, we should also reasonably divide all expenditures into direct costs, indirect costs and * * * the same costs. ?
3. The direct cost, indirect cost and * * * same cost incurred before the completion of the development product shall be allocated to each cost object according to the matching principle. Among them, the direct cost and the indirect cost that can distinguish the cost burden object are directly included in the cost object; * * * For the same cost and the indirect cost that cannot be distinguished due to the simultaneous development or successive rolling development of multiple projects, the allocation calculation shall be made according to the area occupied by each cost object (project), construction area or project budget. ?
4. The expenses included in the cost of developing products must be true. Unless otherwise stipulated in the tax, all accrued (or payable) expenses shall not be included in the product development cost. ?
5. The expenses included in the cost of developing products must comply with the national tax regulations. If it is inconsistent with the tax provisions, the tax provisions shall prevail. ?
6. After the development of products is completed, the taxable costs shall be settled in time within the prescribed time limit, and shall not be advanced or delayed. If the accounting cost is settled, it should be adjusted to taxable cost according to tax regulations. ?
(2) The following items shall be deducted according to the following provisions:
1. Taxable cost of selling development products. The taxable cost of the sold development products allowed to be deducted in the current period is determined according to the saleable area and the unit project cost of the saleable area sold in the current period. The unit project cost of saleable area and the taxable cost of sold development products are calculated and determined according to the following formula:
Usable area unit project cost = total cost of cost object ÷ total usable area?
Taxable cost of sold development products = saleable area of realized sales × unit project cost of saleable area.
2. The expenses incurred by the development enterprise for developing products should be included in the cost, including the preliminary engineering expenses, infrastructure construction expenses, public facilities expenses, land acquisition and demolition expenses, construction and installation engineering expenses, and development overhead expenses. , shall be apportioned according to the actual amount as follows:?
(1) If it occurs before the completion of the cost object, it shall be directly included in the cost object according to the provisions of the taxable cost settlement and other relevant provisions. ?
(2) After the completion of the cost object, it should be allocated between the completed cost object and the unfinished cost object according to the provisions of tax cost settlement and other relevant provisions, and then the part that should be borne by the completed cost object should be allocated between the sold developed products and the unsold developed products.
3. Expenses payable. The expenses payable by the development enterprise can be included in the taxable cost of developing products or deducted before tax with legal documents. The expenses incurred shall not be deducted before tax unless otherwise stipulated in the tax.
4. Maintenance cost. The actual expenses incurred by the development enterprise for daily maintenance, repair and repair of unsold development products and sold development products (including * * * old parts and * * * old facilities and equipment) in accordance with relevant laws, regulations or contracts are allowed to be deducted in the current period. ?
5 * * * Including accessories, * * including facilities and equipment maintenance fund. Development enterprises will have been included in the sales revenue of xx accessories, xx facilities and equipment maintenance fund in accordance with the provisions of the transfer to the relevant departments and units, should be deducted at the time of transfer. Shall not deduct the withholding maintenance fund. ?
6. The clubs, parking garages, property management places, power stations, heating stations, water plants, cultural and sports venues, kindergartens and other supporting facilities built by development enterprises in the Development Zone shall be handled in accordance with the following provisions:?
(1) If it is non-profit, the property rights belong to all owners, or donated to local governments and public institutions free of charge, it can be regarded as public facilities, and its construction costs shall be handled according to the relevant provisions of public facilities fees. ?
(2) For the purpose of making profits, or the property right belongs to the development enterprise, or the ownership of the property right is unclear, or donated to other units other than local governments and public utilities without compensation, the cost shall be accounted separately. Except for the self-use of development enterprises, they should be treated as fixed assets, and others should be treated as construction and development products. ?
7 development enterprises in the development zone construction of posts and telecommunications, schools, medical facilities and other expenses, should be accounted for separately, and in accordance with the following provisions:
(1) After the construction project invested by the development enterprise is completed and sold, it will be treated as a development product under construction; Rental, according to the construction of fixed assets for processing; Free gift to the relevant state business management departments and units, according to the construction of public facilities for processing.
(2) If the development enterprise and the relevant state business management departments and units jointly build a project and hand it over after completion, the economic compensation given by the relevant state business management departments and units can directly deduct the project construction cost, and the difference after deduction should be included in the current taxable income. ?
8. The sales department (reception desk) and model houses built by development enterprises can be accounted for separately as cost objects, can be treated as self-built fixed assets, and others can be treated as construction and development products. The decoration cost of the sales department (reception) and the model house, regardless of the amount, should be included in its construction cost. ?
9. security deposit. If a development enterprise sells its development products by way of bank mortgage and agrees that the development enterprise will provide guarantee for mortgage loans of buyers, the deposit (guarantee money) provided to the bank when it sells its development products shall not be deducted from the sales income, nor shall it be deducted as the pre-tax expenses of the current period, but it may be deducted according to the facts when losses actually occur.
10. Advertising fee, business promotion fee and business entertainment fee. According to the following provisions:?
(1) The pre-sale income obtained by the development enterprise shall not be used as the calculation base of three expenses, such as advertising fee, business promotion fee and business entertainment fee. When the pre-sale income is converted into actual sales income, it is used as the calculation base. ?
(2) The advertising fees, business promotion fees and business entertainment fees related to construction and sales incurred by a newly established development enterprise before obtaining the actual sales income of the first developed product may be carried forward and deducted according to tax regulations, but the carrying forward period shall not exceed 3 tax years at the longest. ?
1 1. Interest. According to the following provisions:?
(1) The borrowing costs incurred by the development enterprise to borrow funds for the construction and development of products that meet the tax requirements, which occurred before the completion of the cost object, shall be included in the cost object in proportion; What happens after the cost object is completed can be directly deducted as a financial expense.
(2) If a development enterprise borrows money from a financial institution and lends it to other enterprises and units in the group for use, the borrower can issue a certificate that the development enterprise has obtained a loan from the financial institution, and the interest paid is allowed to be deducted before tax in accordance with relevant tax regulations.
(3) If a development enterprise lends its own funds to a wholly-owned enterprise (including branches) and other affiliated enterprises, if the amount of funds borrowed by the affiliated parties exceeds 50% of its registered capital, the interest expenses of the excess part shall not be deducted before tax; Interest expenses that do not exceed the part are allowed to be deducted before tax according to the benchmark interest rate of similar loans of financial institutions in the same period. ?
12. Land idle fee. If a development enterprise obtains the land use right of real estate development by means of transfer, it must develop the land according to the land use and the development period agreed in the land use right transfer contract. Land idle fees paid for exceeding the commencement date agreed in the transfer contract shall be included in the construction cost of the cost object; The losses caused by the state's free recovery of land use rights can be deducted as property losses before tax according to tax regulations. ?
13. Scrapping and damage losses of cost objects. If a single or unit project is scrapped or damaged in the construction process, the net loss after deducting the value of the remaining materials and compensation from the negligent person or insurance company shall be included in the project cost of continuing construction; If the cost object is scrapped or damaged as a whole, its net loss can be deducted as property loss according to tax regulations. ?
14. Depreciation. If the development enterprise converts the developed products into fixed assets, depreciation expenses can be deducted according to tax regulations; If it is not converted into fixed assets, depreciation expenses shall not be deducted.
Nine, on the collection and management issues
(a) development enterprises in the annual tax returns, to deal with the tax authorities for approval or filing of pre-tax deductions item by item to verify. If it is not submitted for approval or filing according to the regulations, and if the procedures and materials are incomplete, the relevant procedures and materials shall be handled in time, otherwise it shall not be deducted before tax. ?
(II) Under any of the following circumstances, the tax authorities may collect and manage the enterprise income tax payable in the past in accordance with the approved collection method and gradually standardize it, and deal with it in accordance with the provisions of the People's Republic of China (PRC) Tax Collection and Management Law and other tax laws and regulations, but may not stipulate in advance that the development enterprise income tax shall be collected and managed in accordance with the approved collection method. ?
1. In accordance with the provisions of laws and administrative regulations, there is no need to set up accounting books; ?
2. In accordance with the provisions of laws and administrative regulations, account books should be set up but not set up;
3. Destroying account books without authorization or refusing to provide tax information; ?
4. Although account books are set up, the accounts are chaotic or the cost data, income vouchers and expense vouchers are incomplete, making it difficult to audit the accounts; ?
5. Taxpayers fail to file tax returns within the prescribed time limit and are ordered by the tax authorities to file tax returns within the time limit; ?
6. The tax basis declared by the taxpayer is obviously low, and there is no justifiable reason.
X. about the application of tax reduction and exemption policies?
According to the characteristics of real estate development business, real estate development enterprises and enterprises that mainly develop products by sales (including agency sales) shall not enjoy the tax preferential treatment of newly established enterprises.
XI。 On the scope of application and implementation time of this notice.
This circular is applicable to domestic real estate development enterprises of various economic nature and other domestic enterprises engaged in real estate development business. The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning shall jointly formulate specific implementation measures and report them to State Taxation Administration of The People's Republic of China for the record. ?
This notice shall be implemented as of June 65438+ 10/day, 2006, and the Notice of People's Republic of China (PRC) State Taxation Bureau on Enterprise Income Tax Related to Real Estate Development (Guo Shui Fa [2003] No.83) shall be abolished at the same time. Tax matters that have not been clearly defined before and have not been dealt with shall be implemented in accordance with this notice.
Press release issued on 6 March 2006