Circular of the Ministry of Finance and the State Administration of Taxation on Some Specific Issues concerning Value-Added Tax on Land
Circular of the Ministry of Finance and the State Administration of Taxation on Some Specific Issues concerning Value-Added Tax on Land
Circular of the Ministry of Finance and the State Administration of Taxation on Some Specific Issues concerning Value-Added Tax on Land
Cai Shui Zi [1995] No.48
May 25, 1995
In accordance with the provisions of the Interim Regulations of the People's Republic of China on Value-added Tax on Land (hereinafter referred to as the Regulations) and the Detailed Rules for the Implementation of the Interim Regulations of the People's Republic of China Value-added Tax on Land (hereinafter referred to as the Detailed Rules), we hereby clarify some specific issues concerning the Value-added Tax on Land as follows:
I. Issues concerning tax collection and exemption for investments and joint operations with real estate
In regard to any investment or joint operation with real estate where either party of the investment or joint operation makes an investment or conducts a joint operation by converting land (real estate) into shares, and transfers the real estate to the invested or jointly operated enterprise, it shall be granted a tentative exemption from the Land Value-added Tax. In the event that the above-mentioned real estate is retransferred by the investing enterprise or joint operation enterprise, the Land Value-added Tax shall be imposed.
II. Issues concerning tax collection and exemption for the joint construction of buildings
In the event that one party contributes land and the other party contributes funds for the joint construction of a building and the building is divided by proportion for self-use after completion, it shall be granted a tentative exemption from the Land Value-added Tax. If the building is transferred after completion, the Land Value-added Tax shall be imposed.
III. Issues concerning tax collection and exemption for the transfer of real estate by enterprises during the process of merge and consolidation
In the event that a merged enterprise transfers its real estate to the merge enterprise during the process of merger or consolidation, it shall be granted a tentative exemption from the Land Value-added Tax.
IV. Issues concerning the scope of "gifts" as referred in the Detailed Rules
In the context of the Detailed Rules, the term "gifts" shall refer to the following circumstances:
1.
......
Cai Shui Zi [1995] No.48
May 25, 1995
In accordance with the provisions of the Interim Regulations of the People's Republic of China on Value-added Tax on Land (hereinafter referred to as the Regulations) and the Detailed Rules for the Implementation of the Interim Regulations of the People's Republic of China Value-added Tax on Land (hereinafter referred to as the Detailed Rules), we hereby clarify some specific issues concerning the Value-added Tax on Land as follows:
I. Issues concerning tax collection and exemption for investments and joint operations with real estate
In regard to any investment or joint operation with real estate where either party of the investment or joint operation makes an investment or conducts a joint operation by converting land (real estate) into shares, and transfers the real estate to the invested or jointly operated enterprise, it shall be granted a tentative exemption from the Land Value-added Tax. In the event that the above-mentioned real estate is retransferred by the investing enterprise or joint operation enterprise, the Land Value-added Tax shall be imposed.
II. Issues concerning tax collection and exemption for the joint construction of buildings
In the event that one party contributes land and the other party contributes funds for the joint construction of a building and the building is divided by proportion for self-use after completion, it shall be granted a tentative exemption from the Land Value-added Tax. If the building is transferred after completion, the Land Value-added Tax shall be imposed.
III. Issues concerning tax collection and exemption for the transfer of real estate by enterprises during the process of merge and consolidation
In the event that a merged enterprise transfers its real estate to the merge enterprise during the process of merger or consolidation, it shall be granted a tentative exemption from the Land Value-added Tax.
IV. Issues concerning the scope of "gifts" as referred in the Detailed Rules
In the context of the Detailed Rules, the term "gifts" shall refer to the following circumstances:
1.
......