Circular of the State Administration of Taxation on Printing and Distributing the Administrative Procedures for the Liquidation of Value-Added Tax on Land

Circular of the State Administration of Taxation on Printing and Distributing the Administrative Procedures for the Liquidation of Value-Added Tax on Land

Guo Shui Fa [2009] No. 91

May 12, 2009

To the local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan:

The Administrative Procedures for the Liquidation of Value-added Tax on Land formulated by the State Administration of Taxation for the purposes of enhancing the collection administration of value-added tax on land on real estate enterprises and regulating the liquidation work of value-added tax on land in accordance with the Interim Regulations of the People's Republic of China on Value-added Tax on Land and the implementing rules thereof,Law of the People's Republic of China on the Administration of Tax Levying and the implementing rules thereof as well as other relevant laws and administrative rules concerning taxation and in light of the characteristics of real estate development business is hereby printed and distributed to you to be put into effect.

Administrative Procedures for the Liquidation of Value-Added Tax on Land

Chapter I General Provisions

Article 1 With the view of enhancing the collection administration of value-added tax on land on real estate enterprises and regulating the liquidation work of value-added tax on land , these Procedures (hereinafter referred to as the "Procedures") are formulated in accordance with the Interim Regulations of the People's Republic of China on Value-added Tax on Land and the implementing rules thereof, Law of the People's Republic of China on the Administration of Tax Levying and the implementing rules thereof as well as other provisions.

Article 2 The Procedures shall apply to the liquidation work of value-added tax on land on real estate development projects.

Article 3 For the purpose of the Procedures, the liquidation of value-added tax on land shall mean the activities that the taxpayers calculate the amount of value-added tax on land payable for real estate development projects according to laws and regulations on taxation and relevant policies on value-added tax on land when satisfying the requirements for liquidation of value-added tax on land , fill in Declaration Form on Liquidation of Value-added Tax on Land , and provide relevant materials to the competent tax authority, handle the procedure for liquidation of value-added tax on land , and settle the value-added tax on land payable for the real estate projects.

Article 4 The tax payer shall truthfully make the declaration of the payable value-added tax on land and ensure the truthfulness, accuracy and completeness of the liquidation declaration.

Article 5 The tax authority shall provide quality tax services for taxpayers and shall strengthen the publicity and guidance of policies on value-added tax on land .
The competent tax authority shall, in a timely manner, examine the income, amount of the deductions, value added, value-added ratio and tax calculation in the liquidation declaration of the taxpayer, and shall collect value-added tax on land according to law.

Chapter II Preliminary Management

Article 6 The competent tax authority shall enhance the routine tax administration of real estate development projects and implement project management. The competent tax authority shall, from the time the taxpayer obtains the right to use the land, establish files and set up accounts respectively according to projects, carry out tracking and monitoring during the whole process of real estate development such as approval and initiation of the project, planning and designing, construction, presale, final acceptance of construction, settlement of construction project, project winding-up, and make the tax administration coincide with the project development of the taxpayer.

Article 7 The competent tax authority shall actively pay attention to the accounting work during the project development the taxpayer; if the taxpayer conducts stage project development or develops several projects simultaneously, it shall urge the taxpayer to reasonably categorize relevant incomes, costs and expenses in light of different periods or different projects.

Article 8 Where the taxpayer conducts stage project development or develops several projects simultaneously, the competent tax authority in qualified areas may implement measures on the administration of special notes for projects in combination with the provisions on administration of invoices.

Chapter III Acceptance of Liquidation

Article 9 Where the taxpayer meets any of the following conditions, it shall conduct the liquidation of value-added taxes on land .
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