Circular of State Administration of Taxation and the Ministry of Finance on Printing and Issuing the Detailed Rules for Implementing the Interim Regulations of the People's Republic of China on Land Value-Added Tax
Circular of State Administration of Taxation and the Ministry of Finance on Printing and Issuing the Detailed Rules for Implementing the Interim Regulations of the People's Republic of China on Land Value-Added Tax
Circular of State Administration of Taxation and the Ministry of Finance on Printing and Issuing the Detailed Rules for Implementing the Interim Regulations of the People's Republic of China on Land Value-Added Tax
Cai Fa Zi [1995] No. 6
January 27, 1995
Each ministry and commission, directly subordinate institution of the State Council, the people's governments, the finance departments(bureaus), the state tax bureaus, local tax bureaus, the special commissioner office of finance supervision bureau of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan,
The Rules for the Implementation of the Interim Regulations of the People's Republic of China on Land Value-Added Tax is now issued for your seriously carrying out .
Rules for the Implementation of the Interim Regulations of the People's Republic of China on Land Value-Added Tax
Article 1 The rules are formulated in accordance with Article 14 of the Interim Regulations of the People's Republic of China on Land Value- Added Tax (hereinafter to be referred to as Regulations for short, pls. see CEN NO.3 1994).
Article 2 The transfer of the right to use a tract of State-owned land, and property right of buildings and the attached installations thereon stated in Article 2 of the Regulations refers to the sale or other paid transfers of the real estate. It does not include the transfer of a real estate through inheritance or donation without compensation.
Article 3 The State-owned land stated in Article 2 of the Regulations refers to land defined as such by the State Law.
Article 4 The buildings mentioned in Article 2 of the Regulations refer to all buildings constructed on the land, including all kinds of auxiliary installations above and under ground.
The attached installations mentioned in Article 2 of the Regulations refer to all installations on the land which cannot be removed and will be damaged once removed.
Article 5 The income stated in Article 2 of the Regulations refers to all the prices and related proceeds received for the transfer of the real estate.
Article 6 The units stated in Article 2 of the Regulations refer to all kinds of enterprises, institutions, government organs, social groups and other organizations.
The individuals mentioned there include self-employed business people.
Article 7 The items to be deducted from the land added-value in calculation as stipulated in Article 6 of the Regulations are as follows:
1. The lease price paid for the use of the land refers to the amount paid by the taxpayer for obtaining the land-use right and related expenses paid according to State regulations.
2. The costs and expenses spent in land development and construction of new buildings and auxiliary installations (hereinafter referred to as real estate development for short) refer to the real costs borne by the taxpayer for the land development project (hereinafter referred to as costs of real estate development for short). The costs include compensation fees for land requisition, the dismantling of buildings and the evacuation involved, expenses for pre-construction engineering, construction and installation, infrastructural projects and supplementary public utilities and expenses indirectly related to the development project.
The compensation fees for land requisition, dismantling buildings and evacuation include fees for land requisition, the occupation of farmland, the resettlement of labour force, the net expenses incurred as compensation for dismantling and removing the attached items above and under ground, and fees for arranging houses for evacuation and resettlement.
Pre-construction engineering expenses include expenses for planning and design, feasibility studies, hydrological and geological research, surveys and mapping, and for building electricity, running water and gas supply projects for the construction site and ensuring smooth road transport.
The construction and installation expenses include expenses on construction and installation paid to building teams which have contracted for the development project and also such expenses paid for self-managed development project.
......
Cai Fa Zi [1995] No. 6
January 27, 1995
Each ministry and commission, directly subordinate institution of the State Council, the people's governments, the finance departments(bureaus), the state tax bureaus, local tax bureaus, the special commissioner office of finance supervision bureau of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan,
The Rules for the Implementation of the Interim Regulations of the People's Republic of China on Land Value-Added Tax is now issued for your seriously carrying out .
Rules for the Implementation of the Interim Regulations of the People's Republic of China on Land Value-Added Tax
Article 1 The rules are formulated in accordance with Article 14 of the Interim Regulations of the People's Republic of China on Land Value- Added Tax (hereinafter to be referred to as Regulations for short, pls. see CEN NO.3 1994).
Article 2 The transfer of the right to use a tract of State-owned land, and property right of buildings and the attached installations thereon stated in Article 2 of the Regulations refers to the sale or other paid transfers of the real estate. It does not include the transfer of a real estate through inheritance or donation without compensation.
Article 3 The State-owned land stated in Article 2 of the Regulations refers to land defined as such by the State Law.
Article 4 The buildings mentioned in Article 2 of the Regulations refer to all buildings constructed on the land, including all kinds of auxiliary installations above and under ground.
The attached installations mentioned in Article 2 of the Regulations refer to all installations on the land which cannot be removed and will be damaged once removed.
Article 5 The income stated in Article 2 of the Regulations refers to all the prices and related proceeds received for the transfer of the real estate.
Article 6 The units stated in Article 2 of the Regulations refer to all kinds of enterprises, institutions, government organs, social groups and other organizations.
The individuals mentioned there include self-employed business people.
Article 7 The items to be deducted from the land added-value in calculation as stipulated in Article 6 of the Regulations are as follows:
1. The lease price paid for the use of the land refers to the amount paid by the taxpayer for obtaining the land-use right and related expenses paid according to State regulations.
2. The costs and expenses spent in land development and construction of new buildings and auxiliary installations (hereinafter referred to as real estate development for short) refer to the real costs borne by the taxpayer for the land development project (hereinafter referred to as costs of real estate development for short). The costs include compensation fees for land requisition, the dismantling of buildings and the evacuation involved, expenses for pre-construction engineering, construction and installation, infrastructural projects and supplementary public utilities and expenses indirectly related to the development project.
The compensation fees for land requisition, dismantling buildings and evacuation include fees for land requisition, the occupation of farmland, the resettlement of labour force, the net expenses incurred as compensation for dismantling and removing the attached items above and under ground, and fees for arranging houses for evacuation and resettlement.
Pre-construction engineering expenses include expenses for planning and design, feasibility studies, hydrological and geological research, surveys and mapping, and for building electricity, running water and gas supply projects for the construction site and ensuring smooth road transport.
The construction and installation expenses include expenses on construction and installation paid to building teams which have contracted for the development project and also such expenses paid for self-managed development project.
......