How do real estate companies pay taxes?

You can refer to the following:

Q: When I sell an office building, I need to pay business tax and surcharges. What other taxes are there, such as land value-added tax? How do I pay it?

Answer: In addition to business tax and surcharges, there is also corporate income tax, stamp duty, and land value-added tax. In addition, if the company builds the business by itself, it must pay two business taxes, one is construction business tax, and the other is sales tax. Real estate sales tax. Land value-added tax is calculated based on the added value of the land.

Q: If we provide the land and the buyer pays to build the building, how should we pay taxes?

Answer: Article 17 of the "Notice of the State Administration of Taxation on Issuing the "Answers to Business Tax Issues (Part 1)"" Guo Shui Han Fa [1995] No. 156 addresses the issue of business tax collection for cooperative housing construction. Clearly stipulates: (2) Leasing land use rights in exchange for house ownership. For example, Party A leases the land use rights to Party B for a number of years, and Party B invests in building and using the land. After the lease expires, Party B returns the land use rights together with the built buildings to Party A. In this business process, Party B obtains the land use rights for several years at the expense of the building, and Party A obtains the building at the expense of leasing the land use rights. If Party A engages in the act of leasing land use rights, it will be levied business tax under the "Service Industry - Leasing Industry"; if Party B engages in the act of selling real estate, it will be levied business tax under the tax category of "Sales of Real Estate". When both parties are taxed separately, their turnover shall also be determined in accordance with the provisions of Article 15 of the "Implementing Rules for the Interim Regulations of the People's Republic of China and the State on Business Tax". The verification sequence stipulated in Article 15 of the "Implementation Rules of the Interim Regulations of the People's Republic of China and the State on Business Tax" is: (1) Verification based on the average price of similar taxable services provided by the taxpayer or similar real estate sold by the taxpayer in that month; (2) The taxable price shall be determined based on the average price of similar taxable services provided by the taxpayer or similar real estate sold in the most recent period; (3) The taxable price shall be determined according to the following formula: taxable price = operating cost or project cost * (1 cost profit margin) / ( 1-Business tax rate).

Q: How can I reasonably pay less tax?

Answer: Career questions cannot be answered publicly. I can only tell you that it is a citizen’s obligation to pay taxes in accordance with the law.

Generally speaking, domestic real estate companies often use false costs to avoid taxes when it comes to income tax, while foreign real estate companies are good at using "transfer pricing" techniques to avoid taxes. The so-called "false costs" are to avoid the collection of income tax by inflating costs to minimize the profits generated by real estate development projects or even make losses.

A person with six years of experience in the real estate industry revealed that the behavior of adjusting statements to transfer profits is very common in the real estate industry. For example, a real estate company in Guangzhou wanted to transfer profits abroad and asked its accountant to provide "overseas business reception fees of 20 million yuan." Another real estate company handed over some design work to its overseas affiliated companies and set the design fees very high to transfer profits. An accountant who once worked for a large real estate company in Guangdong revealed that this company has three wholly-owned cultural companies and technical consulting companies. It claims to be diversified, but in fact it uses these companies to conduct related transactions to complete profit transfer. Its affiliated companies receive so-called publicity, planning and consulting fees of up to hundreds of millions of yuan a year, and then complete the final profit transfer by purchasing so-called artworks as fixed assets of cultural companies, because these artworks are purchased from the parent company What the boss bought was worthless at all, it was just a prop. In 2004, there was not a single real estate company in the "2003 Top 100 Taxpayers in China" published by the State Administration of Taxation. Even in the "Top Ten Taxpayers in the Real Estate Development and Operation Industry in 2003" specially set up for real estate companies, the total tax paid by real estate companies is not optimistic.

2. Specific methods of tax avoidance

1) The pre-sale purchase price is recorded in the current book. Bookkeeping of pre-sale house purchase money turns taxes that should be paid immediately into current working capital and evades business tax and corporate income tax. This is a relatively common method used by real estate development companies.

2) It is to issue receipts for advance payment, not to issue invoices, to conceal income or not to recognize income according to the income principle. For advance payments collected from pre-sale commercial properties, only "receipt receipts" are issued to home buyers, and no advance payment processing is done in accounting processing, or a separate set of running accounts is kept and controlled internally.

3) Revenue is not recognized according to the time stipulated in the contract. Delay in paying corporate income tax for various reasons, such as pending liquidation, pending accounts or incomplete sales of commercial properties.

Four) is to adjust the tax declaration amount at will. Due to financial constraints, some real estate development companies arbitrarily adjust the tax declaration amount during the year. The usual practice is to reduce the declaration amount at the beginning and middle of the year and pay it all at the end of the year.

5) Taking advantage of policy "loopholes" and failing to clear land value-added tax in a timely manner. Development projects should settle land value-added tax after all completions, settlements and sales. However, some developers delay settlement or deliberately leave one or two units behind. As a result, the settlement of the entire project cannot be carried out, which affects the timely and full payment of land value-added tax. library.

6) It is to falsely list development costs, arbitrarily expand the scope of cost expenditures, and falsely list project costs. The advance payment for house sales or even the entire house sales amount received by the enterprise is not recorded as revenue or off-book circulation, thus paying less or no business tax and surcharges on the sale of real estate.

7) Income is not recognized based on the income principle if the house is used to pay off the debt or the commercial house is used for self-use. The use of commercial housing to offset the project payment will only be recorded in the current account with the engineering team, without corresponding income adjustments. The agent seller's handling fee expenses are directly deducted from the property sales income, and the net increase in property payment collected from the agent is the taxable turnover, thereby reducing the business tax.

Eight) is to expand the demolition and resettlement compensation area, reduce the salable area, and carry forward more operating costs.

9) It is a price reduction. Lowering the price of commercial housing for sale without justifiable reasons, thereby paying less business tax and corporate income tax.

10) Deliberately delaying the final accounts and completion time of the project to avoid land value-added tax settlement.

3. How the tax department verifies the taxation of real estate companies

In order to comprehensively strengthen the tax collection and management of the real estate industry and plug the loopholes in tax collection and management, we must start from the following aspects.

1) Standardize the daily management of taxation and consolidate the foundation for collection and management of the real estate industry. The first is to establish and improve basic information on the collection and management of real estate enterprises. The basic files for real estate enterprise collection and management should cover a series of tax-related information closely related to taxation for real estate enterprises, including land acquisition, project approval, project bidding, project budget (estimate), and pre-sale of commercial housing. The second is to implement project management. It is necessary to conduct tax registration according to development projects, establish project tax ledgers, conduct tax tracking and management according to projects, verify the invoice acquisition status and monitor the tax payment progress according to projects. The third is to strengthen source control. Strengthen contact with the development and construction authorities and regularly obtain information on construction projects controlled by the construction authorities; entrust the housing management department to implement "tax first, certificate later" when registering house ownership to prevent the loss of tax sources. The fourth is to promote tax assessment of real estate and construction and installation enterprises. Organically combine the daily review of tax-related materials with tax assessment, and establish an early warning value indicator system such as industry profit margins, industry tax burden rates, business tax burden rates, and corporate income tax burden rates in the jurisdiction. Through ticket comparisons, ticket amount comparisons, Logical correlation analysis and other methods will regard taxpayers who are below the warning value as the key targets of assessment and tax tracking, promptly discover loopholes, implement tax interviews, letters and other means to promptly investigate and correct, and urge taxpayers to take the initiative to self-examine and pay taxes. The fifth is to strengthen tax audits on real estate companies. Special inspections of real estate taxation should be carried out in a timely manner, and targeted key inspections should be carried out in cooperation with tax collection and management. Typical tax evasion cases should be publicly exposed through the news media, so as to give full play to the deterrent effect of tax inspections and achieve the purpose of promoting supervision through investigation.

2) Determine the collection methods and manage the two income taxes. The characteristics of real estate development and operation are large investment funds and long development and operation time. According to the legal principles of taxation, the implementation of audit and collection of income tax is undoubtedly the best choice, and it is also in line with the principle of tax fairness. Therefore, real estate development enterprises should actively study and implement the law. The overall direction and goal of strengthening tax collection and management is to establish accounts and certificates in accordance with regulations, and to declare and pay taxes according to the actual situation.

However, judging from the investigation results, it is common for real estate companies to have irregular financial accounting and untrue accounting information disclosed to tax authorities. In view of this situation, on the one hand, measures must be taken in tax collection and management to actively promote the standardization of accounting certificates by real estate enterprises and make financial accounting true; on the other hand, we must find ways to prevent taxpayers from making false accounts, reporting false numbers, and underpaying taxes. It is necessary to uniformly implement the method of combining the minimum burden rate of income tax with audit collection for the income tax collection and management of real estate enterprises, that is, the income of real estate enterprises shall be pre-levied according to the minimum burden rate and taxpayers shall declare according to the actual situation, and the pre-collected corporate income tax and business tax shall be levied simultaneously. After the minimum burden rate is pre-levied on taxpayers, if the actual income tax payable by the enterprise exceeds the pre-levied income tax, it must report to the tax authorities in a timely manner according to the prescribed tax payment period and pay the actual tax.

3) Strengthen the collection and management of real estate business tax. For development projects that have been completed and delivered for sale, real estate enterprises should be promptly urged to carry out project settlement and obtain tax invoices within one year of obtaining the completion acceptance report. For enterprises that deliberately delay settlement, they should collect construction and installation business tax at the approved taxable price in accordance with relevant tax regulations. The minimum taxable price should be formulated based on local construction and installation cost levels. Strengthen urban real estate construction and installation project tax control, unify real estate tax and construction and installation project tax jurisdiction, and merge tax jurisdiction with the local tax authorities in charge of real estate development enterprises. Accelerate the tax informatization management of the real estate industry, and use the construction industry tax information management system to track and monitor the tax registration, tax declaration, tax collection, invoice management, tax source monitoring, tax source analysis, intelligence exchange, information collection, etc. of real estate enterprises. and management. Business tax on the sale of real estate must play its role of tax management through invoices. Real estate companies must issue "Commercial Housing Sales (Advanced Payment) Invoices" when collecting deposits and house payments in advance, and the review and management of special invoices for real estate transfer (sales) must be strengthened. For real estate enterprises with poor tax reputation and tax arrears, it is not appropriate to sell them to "Special Invoices for Real Estate Transfer (Sales)". Those who need to issue invoices must go to the tax collection window to issue them, and do a good job in pre-settlement of development project taxes and do a good job. By clearing both tax receipts, tax receipts can truly be used to control taxes.