Land VAT liquidation Clear operational details on the property market impact geometry

February 1, 2007, Haikou Binhai Avenue, a site in the construction. Xinhua News agency reporter Zhaoying photo of the State administration of Taxation recently issued a notice to clarify the land value-added tax in the process of several tax issues. This has been recognized by many in the industry as one of the "tight" policies of the current property market.　　How does the land value-added tax "clear liquidation" affect the property market? Land value-added tax liquidation clear operational details the general administration of taxation notice that the land value-added tax liquidation when the income recognition, tax deduction, etc., to the issue of invoices prevail.　　For the real estate enterprise overdue development payment of land idle fees, in the calculation of costs shall not be deducted, for enterprises to obtain land use rights paid by the deed, it should be deducted. The notice also said that the real estate development enterprise after the project completion acceptance, according to the contract stipulation, detains the construction installment construction Enterprise certain proportion of the project section, as the development project quality margin, in calculates the land value-added tax, the construction installation construction enterprise regarding the quality margin to the real estate development enterprise invoicing, deducts according to the invoice amount　　Without invoice, the quality of detention shall not be deducted. The notice also on the deduction of real estate development costs, real estate enterprises overdue payment of land idle fee deduction problem, real estate development enterprises to obtain land use rights of the deduction of the deed of payment, relocation and resettlement of land value-added tax calculation problems, transfer of the old house allowance deduction items,　　It is clear that the land value-added tax should be paid after the land value-added tax liquidation. The tax bureau issued a notice in the expected. April 17 announced the state Council on resolutely curb the price of some cities in the rapid rise of the notice has been requested: the tax authorities in strict accordance with the tax law and relevant policy provisions, seriously do a good job of land value-added tax collection management, the price is too high, too fast real estate development projects to focus on liquidation and inspection　　Some recent local property market regulation rules will also be a means of land value-added tax, such as Chongqing will be high-grade housing land value-added tax Shengzheng rate up to 2%, Zhejiang requirements to strengthen the transfer link to second-hand land value-added tax collection and management.　　How is the real estate enterprise "under pressure"? Since 1994, China's real estate land value-added tax has been the implementation of the "Shengzheng system": Prior Shengzheng, after liquidation, more retreat and less, Shengzheng tax rate in general between 1%-3%.　　Some real estate companies for tax shelters to cover the price and sell, virtually helped push the rising trend of house prices. From February 1, 2007 onwards, all over the tax authorities began to formally the real estate enterprise land value Added tax total liquidation, Levy 30% to 60% of land value-added tax. The tax department also clarified that it must and can request the land value-added tax liquidation, including the developer's overall transfer project, direct transfer of land use rights, the project sales rate has reached 85%, the project three years of sales have not finished.　　But for various reasons, the practice is not strictly enforced. University China Economic Research Group April has called for strict land value-added tax, that the strict levy of land value-added tax can be in a certainTo the extent of curbing the real estate enterprises profiteering, control the real estate market investment overheating, reduce real estate enterprises to take the impulse, adjust the structure of the real estate market. Land value-added tax from Shengzheng to liquidation, the cost of real estate enterprises how much?　　Finance and taxation experts, Shanghai University of Finance and economics professor Hu Yijian a simple calculation: to a set of room 1 million yuan, the approved value-added rate of 20%, land value-added tax with the lowest 30% levy, the amount of tax is equivalent to 6% of the approved value-added, compared with the original Shengzheng 1%, to a whole more than 5%, which is undoubtedly a small cost to the enterprise. Experts believe that by increasing the Shengzheng rate of land value-added tax and the timely liquidation, it can narrow down the profit space of real estate development enterprises and the profit space of the seller in the land level two market.　　In addition, hoarding or covering a plate to obtain additional profits will be suppressed. Property market regulation must play a good "combination boxing" theoretically speaking, the tax policy has a long term and stable regulation effect on the real estate markets. However, in reality, many policies are due to the operational, interest-related issues, so that the effect of a major discount. The levy of land value-added tax in some places is an open secret. Moreover, it is difficult to conclude whether the desired effect can be achieved.　　On this clear inventory of land value-added tax, the effect remains to be seen. First, can tax avoidance loopholes be remedied? For a long time, the main reason for the property developers to avoid tax is that there are many loopholes in the tax collection and management policy, which leads to the large levy cost and small strength. Many developers take advantage of the long time span of real estate project development, many links, the complexity of cost calculation, every effort to drill policy loopholes. For example, the real estate enterprise project final accounts to wait until the whole project through acceptance can be carried out, because a project needs construction, quality inspection, Civil air defense, fire fighting, pipe, technical supervision, water supply and so on more than 10 departments have issued acceptance report after completion. The long acceptance process may provide the property developers with tax evasion convenience, some developers use the continuous rolling development project, intentionally or unintentionally, the project final account period is postponed.　　In all this, the tax department should have a strategy to prevent blocking. Secondly, can the local consistent be implemented? Under the land finance model, the local government and the developer have the deep interest correlation. Regulation, the developer has the initiative; once the market is in a slump, it may be in demand. In recent years, all over the introduction of tax sources to introduce a variety of preferential policies, to protect the enthusiasm of investors, and some places even have a tax return policy. From all over the past few years exposure to the case, and even the local government will be the developer land value-added tax overall exemption, change the son to the developer "send money" situation.　　So many, all test the liquidation of land value-added tax work effectiveness. Third, whether the housing enterprises will be transferred to the new cost of housing buyers to push up prices? Hu Yijian said that the strict levy of land value-added tax is conducive to reducing the investment impulse and profit expectations of real estate enterprises, but in the case of imbalance in supply and demand, it may become a part of the new housing prices. Originally is to regulate the enterprise investment speculation, but finally increased the burden of buyers. From past experienceLook, there should be vigilance. In his view, the property market regulation must insist on "combination boxing", in strict implementation of tax policy, must be in the increase of effective supply, control the liquidity of the two-pronged approach. (Reporter Ye Feng, Deng Huaning)