Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Value-added Tax Policies for the Leasing of State-owned Farmland and Others
Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Value-added Tax Policies for the Leasing of State-owned Farmland and Others
Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Value-added Tax Policies for the Leasing of State-owned Farmland and Others
Announcement of the Ministry of Finance and the State Taxation Administration [2020] No.2
January 20, 2020
The value-added tax ("VAT") policies for the leasing of state-owned farmland and others are hereby announced as follows:
I. Leasing state-owned farmland by a taxpayer to agricultural producers for agricultural production purposes will be exempt from VAT.
II. Where a real estate developer that is a general taxpayer proceeds with further development of an uncompleted existing project it has taken over, and then sells real property filed in its own name, such project shall be regarded as an existing real estate project and the developer may opt to calculate and pay VAT at the rate of 5% on a deemed basis under the simplified calculation method.
III. Where an insurance company uses unrefunded business tax to offset VAT payable for future months, pursuant to Item 3 of Article 4 of the Circular of the Ministry of Finance and the State Taxation Administration on Clarifying the Exemption of Elderly Care Agencies from Value-added Tax and Other Policies (Cai Shui [2019] No.20), it may submit to the competent tax authority an application for a lump-sum refund of the surplus business tax uncredited by December 31, 2020.
IV.
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Announcement of the Ministry of Finance and the State Taxation Administration [2020] No.2
January 20, 2020
The value-added tax ("VAT") policies for the leasing of state-owned farmland and others are hereby announced as follows:
I. Leasing state-owned farmland by a taxpayer to agricultural producers for agricultural production purposes will be exempt from VAT.
II. Where a real estate developer that is a general taxpayer proceeds with further development of an uncompleted existing project it has taken over, and then sells real property filed in its own name, such project shall be regarded as an existing real estate project and the developer may opt to calculate and pay VAT at the rate of 5% on a deemed basis under the simplified calculation method.
III. Where an insurance company uses unrefunded business tax to offset VAT payable for future months, pursuant to Item 3 of Article 4 of the Circular of the Ministry of Finance and the State Taxation Administration on Clarifying the Exemption of Elderly Care Agencies from Value-added Tax and Other Policies (Cai Shui [2019] No.20), it may submit to the competent tax authority an application for a lump-sum refund of the surplus business tax uncredited by December 31, 2020.
IV.
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