Recently, lawyer Li Jinsong concluded that after analyzing the annual reports of a number of listed real estate companies, 29 listed real estate companies defaulted on a land value-added tax of 64 billion yuan. This news caused an uproar on the Internet.
So far, only Huayuan Real Estate and Vanke have responded to this. The two companies have basically the same statement. They think Li Jinsong misread the financial statements. However, Li Jinsong insisted on his own opinion. "I really can't understand that some developers have gotten cheap and sold, and they have not fulfilled their legal obligations according to law."
Are the 29 real estate companies that have been named really defaulted on land value-added tax? Is there more real estate companies that have such behavior? Regrettably, although this news has already attracted social attention, the national tax authorities have not yet responded publicly.
However, if the time is extended, it will be found that the collection of land value-added tax has been a controversial issue for many years, and the tax department and the real estate enterprise have been playing for many years.
Tax department and real estate business
Land value-added tax is a tax levied on the value-added amount generated when the land use right is transferred and the building is sold. According to China's current tax law, the land value-added tax adopts a four-level progressive tax rate, the lowest rate is 30%, and the highest rate is 60%. That is to say, as the value-added amount increases in the proportion of the amount of items allowed to be deducted, the tax rate continues to increase. If the value-added amount does not exceed 50% of the deducted project amount, the tax rate is 30%; if the value-added amount exceeds 200% of the deducted project amount, the tax rate will be 60%.
In China, this tax type first appeared in 1994. On January 1, the "Provisional Regulations on Land Value Added Tax of the People's Republic of China" was officially implemented.
According to this regulation, the land value-added tax is levied to regulate the trading order of the land and real estate market, rationally adjust the value-added income of the land, and safeguard the national rights and interests.
In 1994, China’s land transfer was basically all allocated. The enterprises and units that obtained the land basically did not have much land acquisition cost, and the value-added income of the land was relatively large. In 1992 and 1993, there was a real estate bubble in some parts of China. The speculation in real estate was serious, and the national land capital income was lost. It can be said that the introduction of this regulation is precisely to reverse this situation.
The four-level progressive tax rate collection model is determined in this regulation and is retained to this day. The regulations stipulate that units and individuals that transfer state-owned land use rights, buildings on the ground and their attachments and earn income are all taxpayers of land value-added tax and should pay land value-added tax.
In order to ensure the implementation of this regulation, on January 1, 1994, there were also 24 implementation rules, including specific provisions on how to calculate the value-added, how to deduct the expenses, and what kind of circumstances are exempted.
"The starting point of this tax is good. The government tries to regulate the land market through taxation. But the reality of the big environment can't make this tax achieve its purpose." Wang Lina, a researcher at the Institute of Economics of the Chinese Academy of Social Sciences, told reporters that real estate companies are naturally reluctant. Pay this tax and try your best to get through the government joints. For the tax authorities, the collection of this tax is very complicated, resulting in unreasonable collection.
Various tax avoidance measures have emerged. Some developers have turned the whole piece of land into small pieces and developed them in stages, which is 10 years. Because the longer the development cycle, the easier it is to calculate the taxable amount; some developers have obtained pre-sale licenses for many years, but they are reluctant to sell them; some developers cancel the company immediately after the project ends, so that the tax department can not find tax people.
Perhaps for these reasons, the total amount of land value-added tax has not been large, and its share of land income has also been small.
This problem also plagues the tax department.
At the end of December 2006, the State Administration of Taxation issued the “Notice on Issues Concerning the Management of Land Value-added Taxes for Real Estate Development Enterprisesâ€, requiring local tax authorities to strictly carry out land value-added tax settlements, such as stipulations for obtaining sales (pre-sale) licenses for three years. For real estate projects that have not yet been sold, the land value-added tax shall be liquidated, and in accordance with the land value-added tax regulations, the land value-added tax shall be liquidated after the completion of the real estate project.
In May 2010, the State Administration of Taxation issued a document again requesting all localities to further improve the liquidation of land value-added tax, and the document again increased the countermeasures against tax avoidance by developers.
The two issues issued by the State Administration of Taxation have caused a lot of shock to the market. It also attracted collective protests from many developers.
In 2007, a real estate council in Shanghai once wrote to the Shanghai Municipal Government to comment on the land value-added tax clearing work, which is considered to be a huge blow to the real estate industry.
The tax department and the real estate company have won several times, and it seems that they have not been much cheaper.
In 2010, some scholars calculated according to the public data of the Ministry of Finance and the State Administration of Taxation that in the past 10 years, the national land value-added tax has only accounted for 1.29% of the national real estate development enterprise sales. The land value-added tax payable by the developer should account for 15% to 30% of the sales income of the real estate. According to this algorithm, the land value-added tax lost in the country is as high as several trillion yuan.
This article navigation
- Page 1: National lost land value-added tax trillions of government housing enterprises game for many years
- Page 2: National lost land value-added tax trillions of government housing enterprises game for many years
1.High performance outside court surfaces
Incorporating new advanced technology to insure a safe and comfortable playing. 5.5 mm thicker shock-absorbing surface reduces playing fatigue and provides better ball rebound with exceptional game performance
2.Dimensional stability
Design with thicker fiber glass mesh layer and High density foam layer, no shrink, no movements, no buckles
3.Special formula material offers high weather resistance
Resistance to ultraviolet radiation, hot temperature, acid corrosion, and ensure color lasting
4.Easy installation, Low-maintenance, and Cost-effctive
PVC Sports Floor,Outdoor Sports Floor,Outdoor PVC Sports Floor
Shijiazhuang Enlio Sports Goods Co., Ltd. , https://www.enliosports.com