Risk point two: A for the project business duplicate deduction "A for the material"
Case: B real estate enterprises and construction companies signed a "A for the material" building construction contract, agreed that: the contract amount of 10 million yuan ($10,000,000) ($10,000,000), the contract amount of 10 million yuan ($10,000,000), the contract amount of 10 million yuan ($10,000,000), the construction company will not be able to provide the material. The contract amounted to 10 million yuan (including B enterprises to purchase construction materials provided to the construction enterprise), the value-added tax amounted to 900,000 yuan. Completion of the project, the final price of 10.9 million yuan, "A for materials" amounted to 2 million yuan. In addition, Enterprise B to the material suppliers to purchase materials 2 million yuan, received 13% VAT input invoice, Enterprise B into the "development costs" account cost amount is 12 million yuan. Specific analysis: the enterprise to take the package without the package way to send the project, in the material suppliers to provide materials, utilities and other supplies have been invoiced into the development cost of the case, so that the construction company according to the total amount of labor and material prices and invoices again, and bear the burden of its more open part of the tax, repeat the cost of development. Therefore, in the case of signing a contract with the amount of "A material", real estate companies and construction companies in the project settlement, it is recommended that as far as possible to use the "difference settlement method", that is, the amount of A material is not included in the project settlement price and the construction company's sales, so as to avoid the risk of repeated development costs. To avoid the tax risk of double-listing of development costs.Risk Point 3: Lack of legal and effective pre-tax deduction vouchers
1. Risk Description: According to Article 5 of the Measures for the Administration of Pre-tax Deduction Vouchers for Enterprise Income Tax (Announcement of the State Administration of Taxation No. 28 of 2018), enterprises should obtain pre-tax deduction vouchers for their expenditures as a basis for deducting relevant expenditures in calculating the taxable income for enterprise income tax. The enterprises should obtain pre-tax deduction vouchers as the basis for deducting the relevant expenditures when calculating the taxable income for EIT. At the same time, Article 6 of the Announcement stipulates that enterprises shall obtain pre-tax deduction certificates before the end of the remittance period stipulated by the Enterprise Income Tax Law of the current year, while real estate enterprises have many business links, business transactions and transaction objects of different sizes, especially for some fragmented labor expenses and agency expenses, some of them fail to obtain legal and effective pre-tax deduction certificates in a timely manner but at the same time, they will also illegally deduct the corresponding expenditures before tax, which may easily lead to tax-related deductions. The company's business is not only a good one, but it is also a good one for the company's business. 2. Risk prevention and control recommendations: For real estate companies, whether or not to obtain legal and effective pre-tax deduction vouchers, directly determines the cost of expenses. Therefore, the enterprise in the business transactions need to pay attention to the upstream suppliers or service providers to issue invoices in a timely manner, at the same time in the accounts need to pay attention to whether the invoices are in line with the provisions of the billing information is consistent with the economic business, whether the invoice is invalid, etc.3.
3. Case: C real estate enterprises commissioned a real estate brokerage company, to carry out the sales of commercial real estate agents and site procedures for business, the two sides agreed to entrust the completion of the progress of the agency fee. That year, C real estate enterprises commissioned sales agency fee of 3.9 million yuan, included in the "selling expenses" account, and in the enterprise income tax before full deduction. However, the amount was not actually paid that year, and did not obtain any legal and valid documents, resulting in a violation of the pre-tax deduction of tax-related risks. Specific analysis: whether to obtain legal and effective pre-tax deduction vouchers, directly determines the cost of expenses. Therefore, enterprises in the business transactions need to pay attention to the upstream suppliers or service providers to issue invoices in a timely manner, and at the same time in the accounts need to pay attention to whether the invoices are in line with the provisions of the billing information is consistent with the economic business, whether the invoices are invalid, and so on.Risk point four: illegal deduction of interest expenses
1. Risk description: (1) meet the conditions for capitalization of borrowing costs are not capitalized. According to Article 38 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China, the interest paid by real estate enterprises shall not be deducted before the enterprise income tax for the portion of the interest paid in excess of the interest rate calculated in accordance with the interest rate of similar loans of financial enterprises for the same period of time. However, in the actual business, some taxpayers through non-financial enterprises for loan financing, which is higher than the general financial enterprises in the same period of the same type of interest rate, in the case of unfamiliar with the policy, the full amount of interest costs. In addition, according to the "People's Republic of China *** and the implementation of the State Enterprise Income Tax Law Regulations" Article 37, real estate enterprises in line with the capitalization of interest expenses should be required as capital expenditures included in the cost of the relevant assets, shall not be deducted as a financial expense in the current year before the enterprise income tax, part of the taxpayers are often unfamiliar with the details of the policy content or to grasp the inability to lead to the occurrence of irregularities in the deduction of interest expenses. (2) Repeated deduction of interest expenses leads to the risk of paying less land value-added tax. Let's say that a real estate enterprise a project to obtain the cost of land use rights for 50 million yuan, real estate development costs of 30 million yuan, of which "development costs - development overhead" in the interest expenses of 500,000 yuan, "finance costs - interest expenses" 20%. -Interest expense" 200,000 yuan, the interest expense can be calculated according to the transfer of real estate projects and provide proof of financial institutions. Liquidation, the enterprise did not normally accounting for real estate development costs of interest expenses adjusted to the calculation of financial expenses deducted, resulting in repeated deduction of interest expenses. Therefore, the need to remind the real estate development enterprises: has been included in the development costs of interest expenses, should be adjusted to the financial expenses in the calculation of deduction. 2. Risk prevention and control recommendations: real estate enterprises on the amount of capital required to invest in high, mainly dependent on financial institutions loans. At the same time, some companies in the bank contraction of loans through private lending to obtain capital flow, high interest costs, so as a borrower, need to focus on interest expenses. On the one hand, the tax policy has a clear provision, excessive loan interest can not be deducted before the enterprise income tax, enterprises must carefully comb through the loan contract to ensure that the interest exceeds the standard part of the pre-tax expenses. And for the same period of the same type of loan interest rate for financial enterprises, the taxpayer is responsible for the burden of proof, that is, the enterprise in accordance with the contract requirements for the first payment of interest and pre-tax deduction, should provide the same period of the same type of loan interest rate for financial enterprises. On the other hand, the enterprise for the acquisition, construction of fixed assets, intangible assets and after more than 12 months of construction in order to achieve the intended saleable condition of the inventory of the occurrence of borrowing, in the acquisition of the assets concerned, the construction of the period of the reasonable borrowing costs, should be included as a capital expenditure in the cost of the assets concerned, the enterprise should be accurately to distinguish between the part of the loan interest expenses, to avoid irregularities in the financial expenses. 3. Case: D real estate development enterprises by the tax authorities reminded found that in 2020, "financial expenses" subject data for 1.7 million yuan, of which 1.1 million yuan for the project loan interest, the project loan funds for the construction of a project, in line with the capitalization conditions, but the loan interest was Financial personnel recorded in the "finance costs" account, but not capitalized. Specific analysis: the borrowing costs incurred by the enterprise, eligible for capitalization, must be capitalized; do not meet the capitalization conditions, can be deducted as a period of expenses before income tax. Real estate development enterprise development cycle is long, occupy a large amount of capital, borrow more funds, interest expenses accounted for a larger proportion of the borrowing costs incurred for the construction of the development of products should be accurately divided into cost objects, strict compliance with accounting standards and tax regulations, accurate calculation of the amount of capitalization, in order to control the tax risk.Risk point five: outsourcing gifts to customers for tax-related risks
1. Risk description: real estate enterprises in the course of business, due to the sales or publicity and other marketing activities need to be outsourcing gifts to customers occur from time to time. According to the "Provisional Regulations for the Implementation of Value-added Tax Rules" Article 4, the behavior should be treated as sales. At the same time, according to the "Regulations for the Implementation of the Enterprise Income Tax Law," Article 43 provides that the gift expenditure is business entertainment expenditure, can only be deducted in accordance with the amount of 60% of the pre-tax deduction and shall not exceed the current year's operating income, therefore, the gift business, if the financial treatment is not appropriate, it is easy to cause tax risks. 2. Risk prevention and control recommendations: real estate companies give gifts to customers when the business, financial and corporate income tax in a timely manner for value-added tax and enterprise income tax deemed sales processing. At the same time, we must pay attention to the differences in the processing of the two, the recognition of income from deemed sales, value-added tax in accordance with the "Provisional Regulations on Value-added Tax Implementation Rules," the order of the provisions of Article 16 to determine the enterprise income tax in accordance with the fair value of the income determined. After the recognition of the deemed sales revenue, it is necessary to determine the pre-tax deduction limit of the cost in accordance with the total amount of business income and business entertainment expenses. 3. Case: E real estate enterprises to buy clothing, umbrellas, etc. as gifts to customers, and the expenditure is included in the period expenses account, declare the full amount of deduction before the corporate income tax. Specific analysis: purchased gifts to customers should be treated as deemed sales, and gift giving expenditure shall not be deducted over the limit. In terms of value-added tax, deemed sales of goods behavior without sales, in turn, according to the average sales price of similar goods in the month, the average sales price of similar goods in the recent period, the composition of the taxable price of the order to determine; in terms of enterprise income tax, unless otherwise specified, should be in accordance with the fair value of the assets to be transferred to determine the sales revenue. In the example, the real estate company's gift giving expenditure is business entertainment expenditure, can only be deducted in accordance with the amount of 60% of the pre-tax deduction and shall not exceed 5 per cent of the current year's operating income.Risk point six: pre-sale stage tax-related risks
1. Risk description: According to the "Interim Measures for the Administration of Value-added Tax on the Sale of Self-developed Real Estate Projects by Real Estate Development Enterprises," Article 10, the "People's Republic of China **** and the Land Value-added Tax Provisional Regulations," Article 16, the State Administration of Taxation on the land value-added tax notice of some of the provisions on the collection and administration of the camping reform and increase. Announcement on Certain Provisions on the Levy and Administration of Value-added Tax (SAT Announcement No. 70 of 2016), the relevant provisions of Article 1, the real estate enterprises in the pre-sale of the advance receipts received into the supervisory account, the collection of the collection of the collection of the next month of the collection period shall be subject to the prepayment of tax to the competent tax authorities in accordance with the provisions mentioned above, including VAT pre-payment declarations and land value-added tax pre-collection. At the same time, according to Article 9 of the Measures for Handling Enterprise Income Tax of Real Estate Development and Operation Businesses, enterprises are required to calculate taxable income based on the estimated gross profit and make quarterly prepayment of enterprise income tax, but some real estate enterprises are unfamiliar with the tax policy, and are unable to declare prepayment in accordance with the regulations or fail to declare the prepayment of tax in full. 2. Risk prevention and control recommendations: real estate enterprises to obtain the "commercial real estate pre-sale license", before the completion of the project in order to quickly return funds to take the pre-sale mode of sales, pre-collections need to be timely and in full for the corresponding tax prepayment, to avoid the risk of late payment of taxes. 3. Case: F real estate enterprises this month, 80 million yuan of advance receipts, signed the purchase contract amounted to 100 million yuan (including contractual agreement to pay in installments in the month receivable and not received 8 million yuan of room). The next month, the reporting period, the financial staff will only advance payment of 80 million yuan recognized revenue and declared corporate income tax, the contract agreed to installment payments in the month receivable but not received 8 million yuan of sales revenue is not recognized, resulting in tax-related risks. Specific analysis: real estate enterprises through the formal signing of the "real estate sales contract" or "real estate pre-sale contract" of the revenue obtained, should be recognized as sales revenue realization. Among them, the sale of development products to take installment payments, should be based on the sales contract or agreement on the price and payment date to recognize the realization of revenue.Risk Point 7: Rental income is not in accordance with the provisions of the tax declaration
Case: a real estate enterprise project has been completed for the record, due to the low-rise housing near the business district and has not been sold, it will be unsold houses, parking spaces temporarily rented out, but did not rent the relevant income tax declaration, resulting in a tax-related risk. Therefore, if the real estate enterprises rent out the unsold houses, parking spaces and stores, don't forget to declare the rental income in accordance with the regulations.Risk Point 8: Directly quoting the tax basis for VAT prepayment as the tax basis for land VAT prepayment
The tax officials have found from time to time that some real estate enterprises directly quoted the tax basis for VAT prepayment as the tax basis for land VAT prepayment in the process of reviewing the risks, which led to the occurrence of underpayment of land VAT. In the case of real estate development enterprises selling self-developed real estate projects by way of advance receipts, they can choose to prepay land value-added tax in full according to the advance receipts, or prepay land value-added tax according to the caliber of "Land value-added tax prepayment = (Advance receipts - VAT prepayment) × Advance rate" in accordance with the caliber of "Land value-added tax prepayment = (Advance receipts - VAT prepayment) × Prepayment rate". The land value-added tax shall be prepaid in accordance with the caliber of "Land value-added tax prepayment = (Advance receipts - VAT payable in advance) × Advance rate" and shall not directly refer to the caliber of VAT prepayment.Risk point nine: land value-added tax clearing link illegal deduction can not handle the ownership transfer registration procedures of the construction and installation costs of the building of human defense parking space
Case: a real estate development enterprises auction a piece of state-owned land use rights, the project has a villa building, there are high-rise buildings, high-rise buildings are underground parking spaces, parking spaces do not count the capacity can not apply for The parking spaces are not counted and cannot be issued with title certificates. When the land value-added tax is settled, the enterprise will apportion and deduct the land cost of the underground parking space with the villa and high-rise building, which leads to tax-related risks. According to the "State Administration of Taxation Guangdong Provincial Taxation Bureau on the release ofRisk point ten: not according to the development project correctly apportionment of demolition compensation (resettlement) housing costs
Case: a real estate development company one-time acquisition of 100,000 square meters of land, plans to be developed in five phases of the land on the commercial housing of 20, the development of the commercial housing of a total construction area of 2 million square meters. 2 million square meters. The first phase of the development project covers an area of 10,000 square meters, and the total GFA of the developed commercial houses is 200,000 square meters, of which 190,000 square meters have been sold, of which 30 commercial houses are used to compensate for the relocated households, with a market value of RMB 6 million. The company in the land value-added tax settlement, will be paid in kind in the form of compensation for demolition and relocation of all in the first phase of the development project deduction. Multiple development projects *** with the occurrence of land and demolition compensation costs, if not in accordance with the development of the project correctly apportioned, will lead to the development of the first project to pay less land value-added tax, resulting in tax-related risks. Therefore, real estate enterprises should pay attention to the fact that there are multiple development projects and should remember to apportion the costs according to the projects. Land value-added tax is based on the development project as a clearing unit, the cost of different clearing units shall not be deducted from each other, therefore, for the *** same cost that belongs to more than one clearing unit, it is necessary to reasonably allocate or apportion it among the clearing units.Risk Point 11: Incorrect division of ordinary residential property in the liquidation phase
Case: A real estate development company believes that its real estate project is aimed at the housing needs of the group of residential housing, building area of 144 square meters or less, it will be simply identified as ordinary residential property, resulting in inaccurate calculation of the land value-added tax. The risk of inaccurate calculation of land value-added tax arises. The classification of ordinary residential property cannot be based on the condition of floor area alone, but must satisfy the three conditions of floor area ratio, sales price and floor area at the same time. According to the "Notice of the General Office of the People's Government of Guangdong Province on the Opinions of the Ministry of Construction and Other Departments on Stabilizing Housing Prices" [Guangdong Provincial Office [2005] No. 56], the standards of ordinary housing for enjoying the preferential policies are: 1 Residential community building plot ratio of more than; 2 Single housing unit with a floor area of less than 120 square meters, or a single unit with a floor area of less than 144 square meters; 2 Single housing unit with a floor area of less than 120 square meters, or a single unit with a floor area of less than 144 square meters; 3 the actual transaction price is less than the average transaction price of housing on the same level of land times below. The above three conditions need to be met at the same time, in order to be classified as ordinary residential.Risk Point 12: Signing a contract without declaring the payment of stamp duty
1. Risk Description: According to the "Interim Regulations of the People's Republic of China on Stamp Duty" (Decree of the State Council, No. 11), Article 1 provides that in the People's Republic of China, the units and individuals in the territory of the People's Republic of China to set up and receive the vouchers enumerated in the Regulations are all taxpayers of the stamp duty, and should pay in accordance with these Regulations. All units and individuals in the territory of the People's Republic of China are taxpayers of the stamp duty and shall pay the stamp duty in accordance with the provisions of these Regulations. Real estate enterprises signed a land grant or transfer, planning and design, construction and other contracts more, easy to ignore the contract stamp duty declaration. 2. Risk prevention and control recommendations: taxpayers signing contracts in the course of business, timely declaration and payment of stamp duty corresponding to taxable vouchers. Due to the wide range of stamp duty, tax items, taxpayers need to accurately grasp the relevant laws and regulations beforehand to avoid the risk of late payment of taxes.Risk point 13: illegal levy of deed tax
1. Description of the risk: According to Article 29 of the Law on Administration of Taxation Collection, except for the tax authorities, tax officials, and units and individuals entrusted by the tax authorities in accordance with the law, administrative regulations, no unit or individual may carry out tax collection activities. Some real estate companies are not familiar with this policy, and the so-called "license fee" collected from buyers includes the deed tax, which actually violates the above provisions of the Law on Taxation and Administration, and is subject to the corresponding legal liability, and also brings certain tax-related risks to buyers. 2. Risk prevention and control recommendations: In the absence of the tax authorities in accordance with the prescribed procedures, real estate enterprises should not collect any deed tax on behalf of the buyers, and if they have already collected the relevant fees, they should return them as soon as possible to rectify the irregularities in a timely manner.Risk point 14: parking space sales without timely recognition of revenue
1. Risk description: parking space sales revenue is generally in the project completion and acceptance, the first time after the confirmation of property rights, which is the behavior of the sale of goods, according to the current tax policy needs to be recognized at the same time revenue. However, some real estate companies are not familiar with the tax policy, in the acquisition of parking space sales revenue, especially for the parking spaces do not need to apply for a title certificate (the part of the human security project) neither issued invoices, nor value-added tax, corporate income tax revenue recognition, there is a great tax risk. 2. Suggestions for risk prevention and control: Enterprises should sort out the sales business and payments, and make timely revenue recognition for the sale of parking spaces that have been titled or delivered for use to avoid the risk of late payment of taxes.Risk Point 15: Lagging Revenue Recognition
1. Description of Risks: According to Article 3 and Article 9 of the "Measures for Handling Enterprise Income Tax on Real Estate Development and Operation Business", real estate enterprises should settle their taxable costs and calculate the actual gross profit of the previous sales revenues in a timely manner after the completion or deemed completion of the development products, and at the same time, the actual gross profit will be recognized in the same manner as its corresponding gross profit. The difference between the actual gross profit and its corresponding estimated gross profit shall be included in the taxable income of the enterprise in the current year, which is calculated by combining this project with other projects. Some real estate companies are not familiar with the tax policy, and do not distinguish between accounting and tax revenue recognition principle differences, resulting in a lag in the recognition of revenue, which in turn creates the risk of late payment of taxes. 2. Risk prevention and control recommendations: real estate enterprises to accurately grasp the definition of the completion of the development of products, that is, real estate enterprises have been reported to the real estate management department for the record of the completion of the development of products, development of products have begun to be put into use, or development of products have been obtained by the initial property rights certificate is considered to be completed, and should be recognized as timely revenue. At the same time, different sales methods, with different transaction links and operational processes, the time of occurrence of its tax obligations are also different. Real estate development business enterprise income tax treatment methods "(Guo Shui Fa [2009] No. 31) Article VI of the various sales methods of revenue recognition time point are clearly defined. Enterprises should accurately judge whether their own sales methods have reached the point of revenue recognition against this provision to avoid the tax risk of lagging revenue recognition.Risk Point 16: Withholding and Payment of Individual Income Tax on Dividends and Dividends for Natural Person Shareholders
1. Description of Risks: According to Article 2, Article 9 of the Chinese People's **** and State Individual Income Tax Law, and Article 24 of the Regulations for Implementation of the Chinese People's **** and State Individual Income Tax Law, real estate enterprises pay dividends and dividends to individual shareholders. When real estate enterprises pay dividends and bonuses to individual shareholders, they should withhold or withhold individual tax, pay the tax on time, and make special records for inspection. Some real estate companies are not familiar with the policy, there may be a situation where the withholding should not be deducted, especially for some non-monetary forms of shareholder dividends, gifts and other behavior, do not accurately grasp the policy, easy to generate tax risks. 2. Risk prevention and control recommendations: According to the personal income tax policy, real estate enterprises in the payment of dividends and bonuses to shareholders or other forms of dividends, the enterprise should be timely withholding or withholding tax, and do a good job of accounting. At the same time, the accounting treatment should accurately grasp the distinction between dividends and current accounts. According to the "Ministry of Finance, State Administration of Taxation on the standardization of individual investors on the management of individual income tax collection notice" (Cai Shui [2003] No. 158), the second provision of the tax year, the individual investor from its investment in enterprises (sole proprietorships, partnerships, except) borrowing, in the end of the tax year, neither return, and not used for the production and operation of the enterprise, its unreturned borrowing can be regarded as the enterprise on the distribution of dividends to individual investors, the enterprise should be considered as the dividend distribution, and the accounting treatment should accurately grasp the distinction between dividends and the current account. The unreturned loan can be regarded as dividend distribution by the enterprise to individual investors and be subject to individual income tax according to the item of "Interest, Dividend and Bonus Income". Some of the shareholders' long-term loans need to be taxed in accordance with the dividend income, the real estate industry is a capital-intensive industry, capital transactions, more attention in this regard, to avoid tax risks. -END-