Question A Company is a real estate sales company in Jiangsu. Suppose all the properties purchased from a real estate company in a certain month are sold, with the purchase price of 50 million yuan, the sales price of 80 million yuan, the related business tax and other customs fees of 7 million yuan, the loan interest of financial institutions of 3 million yuan and other expenses of 5 million yuan. How to calculate and pay the land value-added tax? Answer Article 7 of the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Some Specific Issues Concerning Land Value-added Tax (Caishuizi [1995] No.48) stipulates that newly-built houses refer to unused properties after completion. Any property that has been used for a certain period of time or reached a certain degree of wear and tear belongs to the old house. Service time and wear degree standards can be specified by the finance departments (bureaus) and local tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government. Therefore, the criteria for the identification of old houses are specified by the financial departments (bureaus) and local taxation bureaus of all provinces (autonomous regions and municipalities directly under the Central Government). Article 4 of the Notice of Jiangsu Provincial Department of Finance and Jiangsu Provincial Local Taxation Bureau on Forwarding Several Issues Concerning Land Value-added Tax to the Ministry of Finance and State Taxation Administration of The People's Republic of China (Su Cai Shui [2007] No.45) stipulates that the old houses in land value-added tax refer to houses that have been built and handled with property certificates or purchase invoices, and houses that have been built and delivered but have not been handled with property certificates. According to the above regulations, the property purchased by Company A from the real estate company has obtained the purchase invoice, which belongs to the old house, not the new house. The property sold by Company A belongs to the old house for sale. Article 7 of the Detailed Rules for the Implementation of the Provisional Regulations on Land Value-added Tax stipulates that the deduction items listed in Article 6 of the Regulations are as follows: (4) The appraised price of old houses and buildings refers to the price after the replacement cost price appraised by the real estate appraisal agency approved by the government is multiplied by the new discount rate when the old houses and buildings are transferred. The evaluation price must be confirmed by the local tax authorities. Article 10 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Some Specific Issues Concerning Land Value-added Tax (Caishuizi [1995] No.48) stipulates how to determine the deduction for the transfer of old houses: the transfer of old houses, the land use right price paid according to the evaluation price of houses and buildings, the relevant fees paid according to the unified national regulations, and the taxes paid at the time of transfer. If the land value-added tax is calculated by deducting the project amount, the land use right transfer fee has not been paid or the certificate of paid land price cannot be provided. Item 12 stipulates that the evaluation fee can be deducted when calculating the value-added amount: if a taxpayer transfers an old house or building to evaluate the real estate for the purpose of calculating the tax, the evaluation fee paid can be deducted when calculating the value-added amount, and the evaluation fee incurred by a taxpayer who conceals the false transaction price of the real estate and collects the land value-added tax according to the evaluation price of the real estate cannot be deducted when calculating the land value-added tax. Article 2 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Several Issues Concerning Land Value-added Tax (Cai Shui [2006]2 1No.) stipulates that taxpayers who transfer old houses and buildings can't obtain the evaluation price, but can provide purchase invoices, shall be confirmed by the local tax authorities. The amount of deduction items stipulated in Article 6 (1) and (3) of the Regulations shall be The deed tax paid by the taxpayer when buying a house can be deducted as "taxes related to the transfer of real estate" if it can provide the deed tax payment certificate, but it shall not be used as the base for adding 5%. Where old houses and buildings are transferred, the local tax authorities may, in accordance with the provisions of Article 35 of the Law on the Administration of Tax Collection, implement the approved collection without evaluating the price and providing purchase invoices. Article 7 of the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Issues Related to Land Value-added Tax Liquidation (Guo [2010] No.220) stipulates that the first paragraph of Article 2 of the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Issues Related to Land Value-added Tax (Cai Shui [2006]2 1 No.2) stipulates that "taxpayers cannot obtain the appraisal price when transferring old houses and buildings, However, the deduction stipulated in Items (1) and (3) of Article 6 of the Regulations can be provided, which can be calculated according to the amount indicated in the invoice, with an annual increase of 5% from the year of purchase to the year of transfer. " When calculating the deduction items, "every year" is one year from the date specified in the purchase invoice to the date of issuance of the sales invoice, and every 12 months; More than one year, less than 12 months but more than 6 months, can be regarded as one year. According to the above provisions, the calculation formula of the value-added amount of the transferred old house is: 1. The appraised price of the old house can be obtained and confirmed by the tax authorities: value-added amount = sales revenue-appraised price of the old house-land price-paid transfer tax-appraised price of the old house 2. If there is no evaluation price, the purchase invoice can be provided and confirmed by the tax authorities: value-added amount = sales revenue-amount included in the invoice (1+ year of purchase ×5%)- land price-transfer tax-related expenses paid. After calculating the value-added amount, determine the value-added rate, and then determine the land value-added tax to be paid. 3. If the price or invoice is not assessed, the tax authorities will verify the collection.

Legal objectivity:

According to the Provisional Regulations on Land Value-added Tax, land value-added tax is a tax levied at the prescribed tax rate based on the value-added amount obtained by units and individuals from the transfer of state-owned land use rights and buildings and their attachments on the ground (hereinafter referred to as real estate). The Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Some Specific Issues Concerning Land Value-added Tax (Cai Shui [1995] No.48) stipulates that individuals who give property rights to their immediate family members or undertake the obligation of direct support shall be exempted from land value-added tax; If the property right of the house is transferred through legal inheritance, the land value-added tax shall be exempted; Individuals who exchange their own residential properties may be exempted from land value-added tax after verification by the local tax authorities. The Detailed Rules for the Implementation of the Provisional Regulations on Land Value-added Tax (Cai Fa [1995] No.6) stipulates that the land value-added tax shall be exempted if the real estate owned by individuals is requisitioned and recovered with the approval of the government due to the needs of urban implementation planning and national construction; Because of the need of urban planning and national construction to relocate, the income obtained by individuals from transferring the original real estate by themselves shall be exempted from land value-added tax; Individuals who transfer their own houses and have lived for five years or more shall be exempted from land value-added tax after reporting to the tax authorities for approval; Those who have lived for 3 years but less than 5 years will be subject to land value-added tax by half; If you have lived for less than 3 years, land value-added tax will be levied according to regulations. The Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Adjusting Some Tax Policies in the Real Estate Market (Caishui [1999] No.2 1 0) stipulates that from August1999 to1day, the land value-added tax at the time of transfer will be temporarily exempted for ordinary houses owned by individual residents. The identification of "ordinary housing" shall be carried out in accordance with the standard of "small and medium-sized Taoxing Xing Tao and low-priced ordinary housing" formulated by the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government according to the Notice of the General Office of the State Council on Forwarding the Opinions of the Ministry of Construction and other departments on Doing a Good Job in Stabilizing Housing Prices (No.26 [2005] of the State Council). That is, "in principle, the following conditions should be met at the same time: the plot ratio of residential buildings is above 1.0, the single building area is below 1.20 square meters, and the actual transaction price is below 0.2 times of the average transaction price of houses on the same level of land." According to the current policy, there are two main calculation methods for personal transfer of real estate and land value-added tax. 1. The calculation method of appraisal price can be provided: land value-added tax payable = (transfer income-appraisal price-taxes related to transfer of real estate) × applicable tax rate 1. "Appraisal price" refers to the price obtained by multiplying the replacement cost price appraised by the real estate appraisal agency approved by the government by the new discount rate; 2. "Taxes related to real estate transfer" refers to business tax, urban construction tax, education surcharge, local education surcharge and stamp duty; 3. The assessment fees incurred by real estate assessment agencies approved by the government are allowed to be deducted when calculating the land value-added tax, but if individuals conceal or falsely report the real estate transaction price for assessment, the assessment fees shall not be deducted; 4. If the appraisal price can be provided, it is not allowed to deduct the deed tax paid when calculating the land value-added tax. 2. The calculation method that the appraisal price cannot be obtained, but the purchase invoice can be provided: land value-added tax payable = [transfer income-purchase price ×( 1+5%×n)- taxes related to the transfer of real estate ]× applicable tax rate 1. "n" refers to the period from the purchase of the house to the transfer of the house; 2 "Taxes related to real estate transfer" include business tax, urban construction tax, education surcharge, local education surcharge and stamp duty; 3. The deed tax paid for the purchase of houses can be deducted when calculating the land value-added tax with the deed tax payment certificate, but it is not used as the base of adding 5%. The above content is the land value-added tax that individuals have to pay for selling houses, hoping to help friends in need.