1. Whether to pay urban land use tax during the preparation period of the enterprise?
First of all, when an enterprise in the preparatory period obtains land use rights, in principle, it should levy land use tax in accordance with regulations.
However, in order to take care of their actual situation, taxpayers who have difficulties in paying taxes may be exempted or reduced by the taxation bureaus of all provinces, autonomous regions and municipalities directly under the Central Government according to specific circumstances, and the land use tax shall be levied in accordance with the provisions of the law for construction projects that have been completed or used.
2. Accounting treatment of land use tax paid by real estate development enterprises.
There is a certain amount of controversy in practice as to whether the land use tax paid by real estate development enterprises during the development and construction period should be included in the "development cost" or the "tax and surcharge".
From an accounting point of view, land use tax and land transfer fee are different.
If the land transfer fee is not paid, the land use right cannot be obtained, and the basic conditions for project development are not met, that is, the land transfer fee is a necessary and reasonable expenditure to make the development project reach the intended usable or marketable state, and should be included in the "development cost".
However, land use tax is a property tax levied on "units and individuals who use land within the scope of cities, county seats, organized towns, industrial and mining areas", and the payment of land use tax is not a necessary and reasonable expenditure for the development of products to reach the intended saleable or usable state.
According to the Provisions on the Accounting Treatment of Value-Added Tax (Cai Kuai [2016] No. 22), the "tax and surcharge" account accounts for consumption tax, urban maintenance and construction tax, resource tax, education surcharge and real estate tax, land use tax, vehicle and vessel use tax, stamp duty and other related taxes and fees incurred in the business activities of enterprises.
Therefore, the land use tax paid by real estate development enterprises should not be included in the "development cost", but should be included in the "tax and surcharge".
In addition, whether the land use tax expenditure is included in the "development cost" or the "tax and surcharge", it has no substantial impact on the accounting profit and enterprise income tax, but it has an impact on the land appreciation tax. This is because, if the land use tax paid by real estate development enterprises during the development and construction period is included in the "development cost", it will increase the "additional deduction" base by 20%, increase the amount of deduction items, and reduce the amount of land value-added tax, which is generally beneficial to taxpayers.
Based on the above considerations, real estate enterprises will include the land use tax paid during the development and construction period in the account of "development cost - land acquisition and demolition compensation".
However, in order to protect the tax base, the tax authorities clearly stipulate that "the land use tax paid by real estate development enterprises, regardless of whether it occurs before or after the completion of the real estate project, shall be deducted in accordance with the provisions of the tax and surcharges." ”
Therefore, regardless of whether it is based on accounting or tax law, the land use tax paid by real estate development enterprises should be included in the "taxes and surcharges", and should not be included in the "development costs".
Reference: "Question 6-1-16 (Expenditure of Land Use Tax of Real Estate Development Enterprises)" in Zhongshen Zhonghuan Research 2020
3. Accounting treatment of land use tax during the preparatory period of industrial enterprises.
In practice, there are perspectives of "capitalization" and "expense" in the accounting treatment of land use tax during the preparatory period of industrial enterprises.
1.The idea of "capitalization".
Capitalization" is a major analogy with the amortization of land use rights.
During the construction of the project, the land is used exclusively for the development and construction of the project, and the economic interests contained in the land are reflected by transferring to the above-ground buildings for development, and the amortization amount of the land use right shall constitute a part of the construction cost of the projectAt the same time, the land resources consumed during the construction of the project, correspondingly, the amortization amount of the land during the period constitutes the necessary expenditure before the above-ground buildings reach the intended usable state, so the amortization of land use rights during the construction period should be included in the construction in progress. (In 2016, the Accounting Department of the China Securities Regulatory Commission (CSRC) issued the "Case Analysis of the Implementation of Accounting Standards for Business Enterprises by Listed Companies", which clearly answered in the form of cases that the amortization amount of land use rights during the construction period should be included in the cost of construction in progress.) )
Therefore, many financial personnel believe that the land use tax during the preparation period of industrial enterprises is "capitalized" and included in the "construction in progress".
2.The point of view of "expense".
The "expense" view is mainly based on the use of land use tax.
According to the provisions of the Provisional Regulations on Urban Land Use Tax (Order No. 483), land use tax is levied on units and individuals who use land within the scope of cities, county seats, organized towns, industrial and mining areas, according to the area of land actually occupied by them and the corresponding unit tax amount, that is, it is more related to the continuous use of land after acquisition, rather than related to the acquisition of land use rights.
The expenditure of land use tax is not a necessary expenditure for the right to use the land or the building to reach the intended state of use, so it is expensed when it is incurred.
In addition, during the preparation period of the enterprise, can the land use tax be included in the "management expenses - start-up expenses"?
Regardless of whether it is included in "management expenses - start-up expenses" or "taxes and surcharges", it has no material impact on accounting profits and enterprise income taxSecondly, there are clear provisions on the inclusion of taxes and surcharges, and the management expenses-start-up fees generally refer to the establishment costs, that is, the costs incurred for the establishment of an enterprise, including legal fees, sponsor fees and license fees, etc., so the basis for including management expenses-start-up fees is insufficient.
Reference: "Question 1-2-18 (Interest on the loan of the land transfer fee for the construction of self-used houses, and the capitalization of land use tax during the construction period)" of the Zhongshen Zhonghuan Research 2020).
Therefore, based on the above, the author prefers the view of "expense", that is, "taxes and surcharges".
Fourth, whether underground buildings need to pay urban land use tax?
Urban land use tax shall be levied on underground construction land built separately within the scope of the expropriation of urban land use rights. Among them, if the underground land use right certificate has been obtained, the tax payable shall be calculated according to the land area confirmed by the land use right certificate;If the underground land use right certificate is not obtained or the land area is not indicated on the underground land use right certificate, the tax payable shall be calculated according to the vertical projection area of the underground building.
The above-mentioned underground construction land shall be temporarily levied at 50% of the tax payable.
Policy basis: Article 4 of the Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning Real Estate Tax and Urban Land Use Tax (CS 2009 No. 128).
5. Under what circumstances can the land use tax be reduced or reduced?
If a taxpayer has any of the following circumstances, it can only be given appropriate tax reduction and exemption after examination and approval by the tax bureau in accordance with the prescribed procedures:
1.Enterprises that have suffered serious natural disasters have real difficulties in paying taxes.
2.The barren mountains, woodlands, swamps, lakes, etc. within the enterprise occupy a large area and the tax burden is heavier, and it is indeed difficult to pay taxes.
3.The enterprise has closed or suspended production for more than half a year, and it is indeed difficult to pay taxes.
4.The newly built enterprise is under construction, has no operating income, and has real difficulties in paying taxes.
5.Land that has been reclaimed from the mountains.
6.Flammable, explosive, and dangerous goods safety precautions within the enterprise.
7.Newly occupied land for units included in the relocation and transformation plan.
8.It is directly used for the production of agriculture, forestry, animal husbandry and fishery.
9.Other exemptions and exemptions shall be examined and approved by the tax authorities in accordance with the provisions of relevant national, provincial and local documents.
6. Whether the land use tax is paid on collective land?
First of all, to determine whether land use tax should be paid, it is not based on the nature of land ownership, but on whether it is in the area where the land is levied and whether it belongs to the tax-exempt ranks.
If the land is in the expropriation area and does not belong to the ranks of tax exemption, according to the provisions of the 2017 No. 29 document of the Ministry of Finance and Taxation, "the units and individuals who lease the land directly from the collective economic organization" shall pay it.
7. How to understand the "actual user"?
The judgment logic of the taxpayer of land use tax:
First of all, it depends on who is the property owner, and if the property owner cannot be found (not in the location of the land, the property right is disputed), the actual user will pay taxes.
Who is actually using it?
The person who derives income from the land, i.e. not just the person who is using the land, such as the lessor rather than the lessee.
Original policy: The land use tax shall be paid by the unit or individual with the right to use the land. If the taxpayer with the right to use the land is not located, the custodian or the actual user shall pay the tax;If the land use right is not determined or the ownership dispute is not resolved, the actual user shall pay taxes;If the land use rights are jointly shared, the parties to the joint ownership shall pay taxes separately. ”
Everyone is welcome to discuss!