1. Tax-related adjustments before the completion of real estate projects
Real estate development enterprises have a wide variety of development products, a long cycle and a variety of sales methods, and the slightest negligence will easily lead to tax risks in the recognition of sales revenue. In view of the fact that the pre-received housing payment obtained by the enterprise from the sale of unfinished products before the completion of the real estate project needs to be adjusted according to the estimated gross profit margin, on the one hand, the financial personnel of the real estate enterprise need to grasp the specific requirements of the tax policy on the time point of revenue recognition, and accurately distinguish the time when the tax liability occurs under different sales methodsOn the other hand, the applicable projected gross margin is recognized.
(1) The time when the tax liability under different sales methods occurs
According to Article 6 of the Notice of the State Administration of Taxation on Printing and Distributing the Measures for the Treatment of Enterprise Income Tax for Real Estate Development and Operation Business (Guo Shui Fa 2009 No. 31, hereinafter referred to as Document No. 31), enterprisesBy formally signing the "Real Estate Sales Contract" or "Real Estate Pre-sale Contract".Income earned, which shall be recognized as the realization of sales revenue, which shall be recognized in accordance with the following provisions:
1. TakeGet paid in full at onceIf the product is sold by way, the realization of revenue shall be recognized on the date of actual receipt of the price or the date of obtaining the voucher (right) for the claim price.
2. TakeCollect money in installmentsIf the product is sold in a way that is developed, it should be pressedThe price and date of payment as agreed in the contract or agreement of saleRecognition of the realization of revenue. If the payer pays in advance, the realization of revenue shall be recognized on the actual payment date.
3. TakeBank mortgagesIf the developed product is sold, the amount of income shall be determined according to the price agreed in the sales contract or agreementDown paymentThe realization of revenue should be recognized on the date of actual receiptBalanceThe realization of income is recognized on the date of transfer of the bank's mortgage loan.
4. TakeDelegateIf the developed product is sold, the realization of revenue shall be recognized according to the following principles:
1) If the sales of developed products are entrusted by paying a handling fee, the realization of revenue shall be recognized on the date of receipt of the list of developed products sold by the entrusted party at the price agreed in the sales contract or agreement.
2) If the sales contract or agreement is signed between the enterprise and the buyer, or if the enterprise, the entrusted party and the buyer jointly sign the sales contract or agreement, if the ** agreed in the sales contract or agreement is higher than the buyout**, the price calculated according to the ** agreed in the sales contract or agreement shall be recognized as the realization of revenue on the date of receipt of the list of developed products sold by the entrusted party;In the case of the first two cases, the sales contract or agreement is lower than the buyout, and if the sales contract or agreement between the Contractor and the Purchaser is signed, the realization of revenue shall be recognized on the date of receipt of the list of the Contractor's sold development products.
3) If the base price (guaranteed reserve price) is adopted and the sales and development products are entrusted by the two parties exceeding the base price, the sales contract or agreement signed by the enterprise and the buyer, or the sales contract or agreement signed by the enterprise, the entrusted party and the buyer, if the ** agreed in the sales contract or agreement is higher than the base price, it shall be agreed in the sales contract or agreement The calculated price shall be recognized as the realization of revenue on the date of receipt of the list of developed products sold by the entrusted party, and the enterprise shall pay the entrusted party the share amount according to the regulations, and shall not be directly deducted from the sales revenue;If the ** agreed in the sales contract or agreement is lower than the base price, the price calculated according to the base price shall be recognized as the realization of revenue on the date of receipt of the list of developed products sold by the entrusted party. If the sales contract is signed directly between the contractor and the purchaser, the realization of revenue shall be recognized on the date of receipt of the list of developed products sold by the contractor at the base price plus the share amount obtained in accordance with the regulations.
4) If the underwriting method is used to entrust the sales of developed products, the realization of revenue can be recognized during the underwriting period according to the relevant provisions of the underwriting contract with reference to the provisions of items 1 to 3 above;For the development of products that have not been developed after the expiration of the underwriting period, the enterprise shall recognize the realization of revenue according to the price and payment method agreed in the underwriting contract or agreement.
(2) Confirmation of the estimated taxable gross profit margin
According to Article 8 of Circular No. 31, the taxable gross profit margin of unfinished development products sold by enterprises shall be determined by the tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government in accordance with the following provisions: (1) If the development project is located in the urban area and suburban area of the city where the people of the province, autonomous region, municipality directly under the Central Government and the city with separate planning status are located, it shall not be less than 15;(2) If the development project is located in the urban area and suburbs of prefecture-level cities, it shall not be less than 10%;(3) If the development project is located in other areas, it shall not be less than 5;(4) If it belongs to affordable housing, price-limited housing and dangerous housing, it shall not be less than 3%.
2. Tax-related adjustments after the "completion" of real estate projects
On the one hand, real estate enterprises should grasp the definition of "completed" development products, and on the other hand, should not ignore the fact that after the "completion" of a real estate project, it should settle its taxable costs in a timely manner, calculate the actual gross profit of the previous sales revenue, and include the difference between the actual gross profit and the corresponding estimated gross profit into the taxable income of the current year.
(1) Definition of "completed" development products
The accounting standards are different from the provisions of the Enterprise Income Tax Law on the time point of revenue recognition of real estate development enterprises. Accounting standards stipulate that a company should recognize revenue when a customer obtains control of the relevant commodity, usually in the form of ".Delivered"as a criterion for judging the transfer of control, while the corporate income tax law emphasizes".FinishedThe concept of ".
According to Article 3 of Circular No. 31, the real estate development and operation business of enterprises includes the development of land, the construction and sale of residential and commercial buildings, and other development products such as buildings, attachments and supporting facilities. In addition to land development, other development productsOne of the following conditions is metshall be deemed to have been completed: (1) the development of the productProof of completionIt has been reported to the real estate management department for the record;(2) Product development has begunPut into service。(3) The development of products has been obtainedInitial Proof of Title
In addition, according to the Notice of the State Administration of Taxation on Issues Concerning the Confirmation of the Completion Conditions of the Products Developed by Real Estate Development Enterprises (Guo Shui Han [2010] No. 201), it is further stipulated that when the enterprise begins to go through the delivery procedures (including check-in procedures) of the development products built and developed by a real estate development enterprise, regardless of whether the quality of the project has passed the acceptance, or whether the completion (completion) filing procedures and accounting final account procedures have been completed, or has already started to be put into use, in order to start putting the development product into use, the development product shall be deemed to have been completed. A real estate development enterprise shall, in accordance with the regulations, settle the taxable cost of the development product in a timely manner and calculate the taxable income of the enterprise in the current year.
In practice, real estate development enterprises usually need to obtain a completion record before they can apply for the initial property right certificate, and then hand it over to the owner and apply for the small property right certificate. However, in some problematic development projects, there will also be a phenomenon of delivering to the owner in advance before the completion of the project. The time point of enterprise income tax confirmation is based on the principle of completion filing, putting into use (including delivery), and obtaining the initial property right certificate, which is the first of three to determine the year of completion.
(2) Confirmation of the actual taxable gross profit margin
According to Article 9 of Circular No. 31, the income obtained by an enterprise from the sale of unfinished development products shall first be calculated on a quarterly (or monthly) basis based on the estimated taxable gross profit margin, and shall be included in the taxable income for the current period. After the completion of the developed product, the enterprise shall settle its taxable costs in a timely manner and calculate the actual gross profit of the previous sales revenue, and at the same time include the difference between its actual gross profit and the corresponding estimated gross profit into the taxable income of the enterprise in the current year when this project and other projects are combined.
In the annual tax return, the enterprise must issue a report on the adjustment of the difference between the actual gross profit and the estimated gross profit of the developed product, as well as other relevant information required by the tax authorities.
Totalknots
To sum up, the recognition of the sales revenue of the enterprise income tax of real estate enterprises is:It is conditional on the signing of the "Real Estate Sales Contract" or the "Real Estate Pre-sale Contract".income tax income should be recognized as long as the contract is signed, and the actual receipt of the price or the receipt of the voucher (right) for the claim price shall be recognizedRegardless of whether it is completed or not, whether it is handed over or not。The income obtained before the completion of the project shall be included in the taxable income according to the estimated gross profit, and the income tax shall be calculated and paid according to the actual profit after the completion of the project.
In accounting, the transfer of control, that is, the "handover" is generally used as a condition for revenue recognition. After completionBefore the delivery of the house, the housing payment received by the real estate enterprise is accounted for in the "pre-receivables" (the new accounting standard has been changed to the "contract liability" account), and the cost of income carry-forward is not recognized. According to Document No. 31, this part of the advance accounts receivable is to recognize the cost of income carry-over, and pay income tax according to the actual profit rather than the estimated gross profit. As a result, there will be tax differences that require tax adjustments. I will share with you how to adjust the specific adjustments in the chapter "How to Accurately Fill in the Tax Adjustments Calculated for Specific Businesses of Real Estate Development Enterprises".
*: Small tile tax.
Author: Song Xiaowa love