Land Value-Added Tax Levied Quietly

When the tax policy of real estate holding links is still uncertain, the land value-added tax is being tightened.

Experts believe that the strict collection of land value-added tax helps to curb the phenomenon of hoarding and hoarding of real estate enterprises, and to a certain extent curb real estate profits, but in the short term, it is difficult to pmit influence to housing prices.

Since the beginning of this year, local tax authorities in some regions have begun to strengthen the collection and management of land value added tax on real estate development enterprises.

China's levy of land value added tax mainly adopts the combination of pre requisition and liquidation.

Tax authorities in Guangxi, Henan, Xiamen and other places have issued documents to increase the rate of land value-added tax levy, to change the approved tax collection into audit collection, and more strictly require enterprises to carry out the liquidation of land value-added tax within the prescribed time limit.

For example, the Guangxi Local Taxation Bureau issued a document at the end of 2, requesting that the rate of land increment tax be adjusted from March 1, 2010. The rate of ordinary residential housing should be prepaid according to the rate of 0.5%, and the rate of non ordinary residential housing will be doubled, according to 2%-3%.

Henan Provincial Land Tax Bureau requires all taxpayers of real estate development to levy land value added tax according to the rate of levy according to the way of checking accounts. After meeting the liquidation conditions of the land value-added tax, the taxpayers will make their own liquidation according to the regulations and settle the tax.

"The land value-added tax is actually the value added of the whole real estate project after the land has been built, and the cost of the building and other taxes and fees are deducted from the land at that time."

Zou Xiaoyun, a land expert, said that in the actual implementation process, due to the large technical difficulties in the cost accounting of the development enterprises, there is a long-term tracking mechanism, and there is no strict collection time limit. The land value added tax has been expedient, and most of the areas are expropriated according to the proportion of the 1%-2% of the pre sold commercial housing.

This kind of tax has certain difficulty in actual operation.

In July last year, the State Administration of taxation had made a thorough investigation of the land value-added tax of eight real estate enterprises.

Zou Xiaoyun said last year's results are still unknown.

As for how the future will be levied and the value-added revenue calculated from what link should be further considered.

Because the land value-added tax is taxed according to the income obtained from the real estate pfer, the exact amount of land value-added tax can only be calculated when the real estate project is completed and settled.

But the real estate development cycle is long, and many housing enterprises have delayed liquidation in various ways after meeting the liquidation standards.

In addition, the land value-added tax rate is low, so it has not been able to give full play to the regulation of land value-added benefits.

This tax was raised in 2007 when the real estate market heated up sharply. However, the financial crisis in 2008 had left him behind.

Yang Hongxu, Minister of the comprehensive research department of Shanghai Yi Ju Research Institute, believes that the land value-added tax has already had relatively perfect regulations. In the future, according to the project, the proportion of advance tax may be raised, and the collection of four levels must be strictly followed.

The new "Ten States" mentioned that the tax authorities should strictly follow the tax law and relevant policies and regulations, conscientiously do a good job in the collection and management of land value-added tax, and focus on liquidation and inspection of real estate development projects that are priced too fast or too fast.

"Strictly implementing the land value-added tax policy can curb the hoarding and hoarding of real estate enterprises and curb the profit margins of real estate."

Zou Xiaoyun said that all the local tax bureaus did not collect the land value-added tax in the past few years. If it is strictly collected, housing companies need to cash in the land or housing they can hold to pay taxes, which will increase the cost of the enterprises and affect their cash flow.

People in real estate believe that in real estate development, land value-added tax and other taxes are withholding a certain proportion, which will be repaid after the project is carried forward.

For the real estate enterprises, the IRS has reaffirmed the land value-added tax in 2007. The Real Estate Company has generally made provision in its profit and loss account, so it will not have much impact on the profits of the real estate enterprises for the time being, but it will affect the cash flow and financial situation of the real estate developers.

However, Zou Xiaoyun said that because developers have almost monopolized the real estate market, if the cost of developers increases, this part will be considered as the cost of Housing enterprises or will be included in housing prices.

Yang Hongxu said that if the implementation of land value-added tax strictly, the short-term impact on developers may be great, but whether developers will pass the cost remains to be seen, land value-added tax is completed after the sale of real estate projects or at least more than 85% of the sale of liquidation, if housing prices and turnover down obviously can not pass the cost.

He also believes that the current value-added tax on second-hand housing pactions are exempted, if the future second-hand housing need to levy this tax will have a greater impact on the suppression of housing prices.

Zhao Xiao, a professor at the school of economics and management of University of Science and Technology Beijing, thinks that for the different types of commercial housing, the pretax rate and the actual liquidation rate of land value-added tax are different.

If the land value-added tax is strictly imposed, it will undoubtedly increase the cost of non ordinary housing and ensure the effective supply of ordinary housing.