2. The special invoice for the renovation of leased assets obtained by your company does not belong to the category of real estate installment deduction, and can be deducted at one time.
Policy basis:
Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Issuing the Interim Measures for Deduction of Real Estate Input Tax by Stages
People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement15,2016
Article 2 The real estate acquired by general VAT taxpayers after May 20 1 and 20 16 and accounted as fixed assets in the accounting system, and the real estate under construction acquired after May 20 1 year shall be deducted from the output tax in two years according to the relevant provisions of these Measures, with the deduction ratio of 60% in the first year and 60% in the second year.
Acquired real estate includes real estate acquired in various forms such as direct purchase, accepting donations, accepting investments and shares, and paying off debts.
Taxpayers build, rebuild, expand, repair and decorate real estate, which belongs to real estate projects under construction.
For real estate projects developed by real estate development enterprises themselves, real estate leased by finance and temporary buildings and structures built on the construction site, the input tax deducted for the above two years is not applicable.
Article 3 After May 1 2006, if a taxpayer purchases goods, design services and construction services for the purpose of building new real estate, or for the purpose of rebuilding, expanding, repairing or decorating real estate, so as to increase the original value of real estate by more than 50%, the input tax shall be deducted from the output tax within two years in accordance with the relevant provisions of these Measures.
The original value of real estate refers to the original purchase price or pricing when obtaining real estate.
The above-mentioned purchased goods with two-year output tax deduction refer to materials and equipment that constitute real estate entities, including building decoration materials and water supply and drainage, heating, sanitation, ventilation, lighting, communication, gas, fire protection, central air conditioning, elevators, electrical and intelligent building equipment and supporting facilities.
State Taxation Administration of The People's Republic of China, Ministry of Finance, circular on comprehensively promoting the pilot reform of business tax to value-added tax.
Caishui [2016] No.36
Attachment 1:
Measures for the implementation of the pilot reform of business tax to value-added tax
Article 27 The input tax of the following items shall not be deducted from the output tax:
(1) Goods purchased, processing, repair and replacement services, services, intangible assets and real estate used for simple taxable items, items exempted from value-added tax, collective welfare or personal consumption. The fixed assets, intangible assets and real estate involved only refer to the fixed assets, intangible assets (excluding other equity intangible assets) and real estate dedicated to the above projects.
Taxpayers' social and entertainment consumption belongs to personal consumption.
(two) abnormal loss of purchased goods, and related processing, repair and replacement services and transportation services.
(3) Goods purchased (excluding fixed assets), processing and repair services and transportation services consumed by products in process and finished products with abnormal losses.
(four) the abnormal loss of real estate, as well as the commodity procurement, design services and construction services consumed by the real estate.
(5) Goods purchased, design services and construction services consumed by the real estate under construction with abnormal losses.
Taxpayers' newly built, rebuilt, expanded, repaired and renovated real estates are all real estate projects under construction.
(six) the purchase of passenger services, loan services, catering services, residents' daily services and entertainment services.
(seven) other circumstances stipulated by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China.
The goods mentioned in Items (4) and (5) of this article refer to materials and equipment that constitute real estate entities, including building decoration materials and water supply and drainage, heating, sanitation, ventilation, lighting, communication, gas, fire protection, central air conditioning, elevators, electrical and intelligent building equipment and supporting facilities.