How to write accounting entries for deed tax?

1. If the company receives the donated house and can use it directly, the company will receive the following accounting treatment when accepting the donation

Borrow: Fixed assets.

Credit: Capital Reserve.

Tax Payable - Deed Tax Payable.

When paying deed tax in practice:

Debit: Tax Payable - Deed Tax Payable.

Credit: Bank deposits.

2. If the company obtains the house and cannot use it directly, when obtaining the property rights of the house, the accounting entries are:

Borrow: Construction in progress.

Credit: Tax Payable - Deed Tax Payable Bank Deposit Practice When paying deed tax, Borrow: Tax Payable - Deed Tax Payable.

Credit: Bank deposit after the completion of the construction of the house, borrow: fixed assets.

Credit: Construction in progress.

3. If the company purchases the house and the house can be used directly, in the case of a high-rise building, the accounting treatment is:

Borrow: Fixed assets.

Credit: Tax Payable - Deed Tax Payable Bank Deposit Practice When paying deed tax, Borrow: Tax Payable - Deed Tax Payable.

Credit: When the bank deposit is exchanged for the house, it is assumed that both sides are appropriate, and the deed tax can be exempted.

Assuming that ** is not appropriate, it exceeds the tax rate paid at the deed of purchase. State-owned companies are exempt from deed tax when moving state-owned real estate to each other. When the company pays back taxes and late fees, it borrows: distribution of profits from fixed assets or construction in progress - undistributed profits.

Credit: Bank deposits.

Accounting treatment of deed tax: 1. After the enterprise obtains the right to use the house and land, when calculating the deed tax payable: borrowing

Fixed assets and intangible assets Credit: tax payable Deed tax payable 2. When an enterprise pays taxes: Borrow:

Tax Payable Deed Tax Payable Credit: Bank Deposit Enterprises can also skip the "Tax Payable Deed Tax Payable" account. When the deed tax is actually paid, the "fixed assets" and "intangible assets" accounts are debited and the "bank deposits" accounts are credited.

Real estate enterprises can be included in the accounts of "land development" and "housing development"; Other enterprises can be included in accounts such as "construction in progress" or "fixed assets".

Deed tax does not have to be accounted for through the "Tax Payable" account.

Deed tax is paid when purchasing immovable property and should be included in the cost of fixed assets and land.

Real estate companies.

Borrow: Development cost - the price paid to obtain the land use right.

Credit: Tax payable --- deed tax payable.

Debit: Tax payable --- deed tax payable.

Credit: Bank deposits.

Other businesses buy homes.

Borrow: Fixed assets.

Credit: Tax payable --- deed tax payable.

Debit: Tax payable --- deed tax payable.

Credit: Bank deposits.

1. When an enterprise purchases fixed assets or intangible assets to generate deed tax and obtains corresponding invoices, it shall be included in the cost of assets

Debit: Fixed assets (or intangible asset accounts) (including deed tax).

Tax Payable – VAT payable (input tax).

Credit: Bank deposits.

2. When the enterprise accrues depreciation or amortization:

Borrow: Administrative expenses.

Credit: Accumulated depreciation (or accumulated amortization account).

If an enterprise purchases fixed assets or intangible assets and generates deed tax and obtains corresponding invoices, it shall be included in the cost of assets, and set up accounts such as "fixed assets" or "intangible assets" for accounting; When an enterprise accrues depreciation or amortization, it shall set up an account of "management expenses" and an account of "accumulated depreciation" or "accumulated amortization".

Extended Materials. Deed tax refers to a one-time tax levied on the new owner (property right bearer) at a certain percentage of the property price of the contract entered into by the parties when the property rights of immovable property (land, house) are transferred and changed.

In addition to having the same nature and function as other taxes, deed tax also has its own characteristics: the purpose of the deed tax is to protect the legitimate rights and interests of the owners of immovable property; The taxpayer is the assignee of the title; Proportional tax rates are applied.

On September 1, 2021, the Deed Tax Law of the People's Republic of China came into effect. After the implementation of the tax law, most regions in the country have adopted a flat shift in the tax rate, which reflects the legislative idea that the level of deed tax burden remains unchanged on the whole.

According to Article 4 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Deed Tax, the tax basis for deed tax is as follows: (2) The gift of land use right and house donation shall be verified by the collection authority with reference to the land use right and the market for housing sales.

Therefore, the recipient of the donated property is required to pay the deed tax in full.

In addition, the second paragraph of Article 1 of the Notice of the State Administration of Taxation on Issues Concerning the Strengthening of the Tax Administration of Individual Free Gifts of Real Estate Transactions (GSF 2006 No. 144) clearly stipulates that "for the act of individuals donating immovable property without compensation, the full amount of deed tax shall be levied on the donee. "The deed tax on the gift of property is levied in full, i.e. it is paid by the recipient at a rate of 3%.