Do WFOEs need to pay land use tax?

I searched some information on the Internet and confirmed that WFOE needs to pay land use tax, but the specific collection time and amount of each region are set by each region itself, as for your situation, you also need to go to the local tax bureau to ask in detail.

For the first time in China, foreign-funded enterprises are included in the scope of urban land use tax.

Xinhuanet, Beijing, February 6 (Reporter Han Jie) The reporter confirmed from the State Administration of Taxation on February 6 that China has included foreign-invested enterprises and foreign enterprises in the scope of urban land use tax since January 1, 2007. The Ministry of Finance and the State Administration of Taxation have made specific arrangements for the collection.

The Ministry of Finance and the State Administration of Taxation recently jointly issued the "Notice on Implementing the Decision on Amending the Interim Regulations of the People's Republic of China on Urban Land Use Tax", making it clear that the collection of urban land use tax on foreign-funded enterprises is a brand-new work. Gradually establish and improve the database of tax sources.

The circular demanded that all localities should strictly implement the urban land use tax policy, conscientiously study and properly resolve new problems encountered in the process of collection and management, and report major problems to the Ministry of Finance and the State Administration of Taxation in a timely manner.

On December 31, 2006, the Decision on Amending the Provisional Regulations of the People's Republic of China on Urban Land Use Tax was promulgated, amending part of the contents of the Interim Regulations of the People's Republic of China on Urban Land Use Tax formulated in 1988 and re-promulgating it.

The Decision came into effect on 1 January 2007 and clearly extended the scope of urban land use tax to foreign-invested enterprises and foreign-funded enterprises.

The relevant responsible person of the Legislative Affairs Office said that foreign-invested enterprises and foreign-invested enterprises do not pay urban land use tax when they pay site use fees and land transfer fees; Domestic-funded enterprises pay land transfer fees and urban land use tax, and the tax burden is inconsistent. In order to fair the tax burden, the decision stipulates that foreign-invested enterprises and foreign enterprises shall also pay urban land use tax in accordance with the regulations.

The tax is stipulated to be paid by the lessor, but if the lessor does not pay, it shall be paid by the actual user.

The "Decision on Amending the Provisional Regulations of the People's Republic of China on Urban Land Use Tax" was promulgated, revising part of the contents of the "Interim Regulations of the People's Republic of China on Urban Land Use Tax" and repromulgating them.

The Decision came into effect, which clearly extended the scope of urban land use tax to foreign-invested enterprises and foreign enterprises.

In this regard, the relevant person in charge of the Legislative Affairs Office said that if a foreign-invested enterprise or a foreign enterprise obtains the right to use land through administrative allocation, it shall pay a site use fee in accordance with the relevant laws and administrative regulations.

1. After the implementation of the system of paid use of land in China.

Land for production and operation generally needs to be acquired by way of transfer and pay the land transfer fee, and foreign-invested enterprises and foreign enterprises that pay the land transfer fee will no longer pay the site use fee. Foreign-invested enterprises and foreign enterprises shall pay site use fees and land transfer fees, but shall not pay urban land use tax; Domestic-funded enterprises pay land transfer fees and urban land use tax, and the tax burden is inconsistent.

2. For the sake of fair taxation, the "Decision" stipulates.

Foreign-invested enterprises and foreign enterprises shall also pay urban land use tax in accordance with the regulationsRegarding the question of whether urban land use tax applies to foreign-invested enterprises, according to the current relevant regulations, the Provisional Regulations of the People's Republic of China on Urban Land Use Tax do not apply to foreign-invested enterprises; Foreign-invested enterprises shall be subject to land use fees, but not land use tax. As for the resulting problems of unification of the tax system, imbalance of tax burdens among enterprises, and impact on land use tax revenues, we can only solve the problem by revising the land use tax regulations as soon as possible so that they can be uniformly applied to domestic and foreign-funded enterprises. Prior to this, it is necessary to strictly enforce the existing laws and regulations, and conscientiously grasp the collection of land use fees for foreign-invested enterprises.

When will foreign-invested enterprises start to pay land use tax? China's laws clearly stipulate that in the new "Interim Regulations on Land Use Tax", foreign-invested enterprises and foreign enterprises are also included in the scope of land use tax, but the measures for levying land use fees on foreign-invested enterprises in various localities are no longer enforced. All foreign-invested enterprises only need to pay land use tax, and do not need to pay land use fees.

3. The relevant provisions are as follows.

Article 1 of the Decision on Amending the Provisional Regulations of the People's Republic of China on Urban Land Use Tax stipulates that a paragraph on Lunchangji is added to Article 2 as the second paragraph: "The units mentioned in the preceding paragraph include state-owned enterprises, collective enterprises, private enterprises, joint-stock enterprises, foreign-invested enterprises, foreign enterprises and other enterprises and public institutions, social organizations, state organs, the military and other units; The term "individuals" includes individual businesses and other individuals. ”

China has implemented the new Interim Regulations on Land Use Tax, and foreign-invested enterprises and foreign enterprises are also included in the scope of land use tax, but the measures for levying land use fees on foreign-invested enterprises in various localities are no longer enforced. Swift shirts.

Foreign-invested enterprises are required to pay cultivated land occupation tax. According to the relevant laws and regulations, if the party occupies cultivated land within the territory of the People's Republic of China to construct buildings or structures or engage in non-agricultural construction, the party concerned shall pay the cultivated land occupation tax in accordance with the law.

[Legal basis].Article 2 of the Law of the People's Republic of China on Cultivated Land Occupation Tax.

Units and individuals that occupy cultivated land within the territory of the People's Republic of China for the construction of buildings and structures, or engage in non-agricultural construction, shall pay the cultivated land occupation tax in accordance with the provisions of this Law. Oak early.

Those who occupy cultivated land to construct farmland water conservancy facilities shall not pay cultivated land occupation tax.

"Cultivated land" as used in this Law refers to land used for growing crops.

1. What is the tax on the transfer of equity of wholly foreign-owned enterprisesThe income tax on the transfer of foreign equity of foreign-invested enterprises (hereinafter referred to as "foreign equity transfer to goodwill") is a withholding tax in nature. The Income Tax Law of the People's Republic of China on Foreign-Invested Enterprises and Foreign Enterprises (hereinafter referred to as the "Foreign Investment Income Tax Law") stipulates indirectly: "If a foreign enterprise does not set up an institution or place in China, but has profits, interest, rent, royalties and other income obtained in China, or has established an institution or place, but the above-mentioned income has no actual connection with its institution or place, it shall pay 20% income tax."

Logically speaking, the "other income" should include the income from the transfer of foreign equity. 2. Is the content of equity the sameGenerally speaking, the equity owned by shareholders is the same in nature, only in terms of shares, but the articles of association of the company can stipulate the content of equity, such as separating equity from decision-making power, and making special provisions on the issue of decision-making power. In addition, ** can be divided into preferred shares and common shares, preferred shares usually have a pre-set dividend yield and give priority to the distribution of dividends, but they cannot be listed and circulated, nor can they participate in decision-making.

3. What are the direct transfer methods of share transfer, which refers to the direct transfer of the equity belonging to the transferee to the transferee; Indirect transfer refers to the transfer of the transfer and equity in a way that does not involve the agreement of the parties, including inheritance, company merger, etc. The practical significance of direct transfer and indirect transfer lies in the fact that some equity transfer transactions can achieve tax avoidance if they change from direct transfer to indirect transfer.

Article 2 of the Foreign Investment Law of the People's Republic of China: This Law applies to foreign investment within the territory of the People's Republic of China (hereinafter referred to as "within the territory of China"). "Foreign investment" as used in this Law refers to investment activities conducted directly or indirectly by foreign natural persons, enterprises or other organizations (hereinafter referred to as "foreign investors") within the territory of China, including the following circumstances: (1) Foreign investors establish foreign-invested enterprises in mainland China, either alone or jointly with other investors; (2) the foreign investor acquires shares, equity interests, property shares or other similar rights and interests of enterprises within the territory of China; (3) foreign investors invest in new projects in China, either alone or jointly with other investors; (4) Other forms of investment as provided for by laws, administrative regulations or other means.

"Foreign-invested enterprises" as used in this Law refers to enterprises that are wholly or partially invested by foreign investors and are registered and established within the territory of China in accordance with the laws of China.

Wholly state-owned enterprises can pay enterprise income tax. Wholly state-owned enterprises are enterprise legal persons, with legal personality, taxpayers of enterprise income tax, relevant laws and regulations stipulate that resident enterprises shall pay enterprise income tax on their income within and outside China. If a non-resident enterprise establishes an institution or place in China, it shall pay enterprise income tax on the income obtained by the establishment or place in China.

Individual Income Tax Law of the People's Republic of China

Article 2. The following personal income shall be subject to individual income tax of Huai Qianzhao:

1) Income from wages and salaries;

2) Income from remuneration for labor services;

3) Income from author's remuneration;

4) the income from the royalties;

5) Business income;

6) Income from interest, dividends and bonuses;

7) Income from property lease;

8) Income from the transfer of property;

9) Incidental gains.

Resident individuals who obtain the income from items 1 to 4 of the preceding paragraph (hereinafter referred to as "comprehensive income") shall calculate individual income tax on a consolidated basis according to the tax year;

For non-resident individuals who obtain the income in items 1 to 4 of the preceding paragraph, the individual income tax shall be calculated on a monthly or sub-itemized basis. Taxpayers who obtain the income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this Law.

What taxes and fees do foreign-invested enterprises not pay, in other words, what taxes and fees need to be paid. As follows:

1. Value-added tax, VAT payable = output tax - input tax. The applicable tax rate is 17%.

2. Enterprise income tax shall be calculated and paid according to the total profit minus non-taxable income, tax-exempt income, losses to be made up in previous years, plus or minus tax adjustments; The applicable tax rate is 25%.

3. Real estate tax: The real estate tax shall be calculated and paid according to the residual value of the original value of the property after deducting 10% to 30% at a time. The applicable tax rates are:

4. Land use tax: The land use tax shall be calculated and levied on the basis of the land area actually occupied by the taxpayer, and shall be calculated and levied in accordance with the prescribed tax amount. The annual tax amount per square meter of land use tax is as follows (abbreviation: unit level tax amount):

1) 30 yuan for large cities;

2) Medium-sized cities to 24 yuan;

3) 18 yuan for small cities;

4) County seats, organized towns, industrial and mining areas to 12 yuan.

How to deal with the accounting entries of enterprise tax payment?

Enterprises can pay more taxes, such as real estate development enterprises involved in more than 10 types of taxes. The nature of the enterprise is different, the tax is also different, the general enterprise mainly pays value-added tax, consumption tax, business tax, stamp duty, urban construction Pachang guess tax, education surcharge, individual income tax, enterprise income tax.

1. Spring type entries for tax payment:

Debit: Tax Payable - VAT Payable (Output Tax).

Excise duty payable.

Sales tax is due.

Urban construction tax should be paid.

Withholding and payment of individual income tax.

Corporate income tax is payable.

Credit: Bank deposits.

Borrow: Administrative Expenses - Stamp Duty.

Other payables - education surcharge.

Credit: Bank deposits.

2. Accrual entries:

VAT - calculated when the product is sold.

Debit: Bank deposits (accounts receivable).

Credit: main business income.

Tax Payable - VAT Payable (Output Tax).

Business tax, consumption tax, additional tax, etc. - accrual of taxable turnover in the current month.

Borrow: Main business tax and surcharge.

Credit: Tax Payable - Business Tax Payable.

Excise duty payable.

Urban construction tax should be paid.

Other payables - education surcharge.

Personal income tax - deducted at the time of payroll.

Borrow: Employee Compensation Payable - Wages Payable.

Credit: Taxes payable - payment and withholding of individual income tax.

Corporate Income Tax – Adjusted Profit Calculation.

Borrow: Expenses earned.

Credit: Tax Payable - Corporate Income Tax Payable.

Stamp duty - does not need to be accrued and is directly included in profit and loss.

Enterprises with fixed assets must also pay real estate tax and urban land use tax; If there is land and real estate transfer and development, etc., it is also necessary to pay deed tax, land occupation tax, and land value-added tax.

Question 1 Answer:

Article 5 of the Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures stipulates that "the investment of a Chinese joint venture may include the right to use the site provided for the joint venture during its operation, and if the right to use the site is not part of the investment of the Chinese partner, the joint venture shall pay a royalty to China". Article 41 of the Detailed Rules for the Implementation of the Law of the People's Republic of China on Foreign-Funded Enterprises stipulates that:

In addition to obtaining land use rights in accordance with the provisions of this Chapter, foreign-funded enterprises may also acquire land use rights in accordance with the provisions of other laws and regulations of the People's Republic of China. It can be seen from the above-mentioned laws and administrative regulations that the site use fee is the use fee paid by foreign-funded enterprises and Sino-foreign joint ventures to obtain land use rights. In 1997, the Ministry of Finance clarified that the site use fee is the income from the paid use of state-owned land.

In 1990, after China began to implement the system of paid land use, the former State Land Administration and the General Office of the People's Republic of China in 1994 and 1999 respectively made it clear that foreign-funded enterprises that obtained land use rights by way of transfer no longer paid site use fees.

Therefore, the site use fee is similar to the land transfer fee, which is the fee charged by the state for the transfer of land use rights for compensation, and is the cost paid by the enterprise in the process of land acquisition. The urban land use tax is the tax revenue obtained by the state free of charge, and it is the tax paid by the enterprise in the land tenure link, and the site use fee is different from the urban land use tax in terms of nature, rights and interests, and subordinate links. Therefore, the levy of urban land use tax has nothing to do with whether or not to pay site use fees.

The above answers are quoted from the State Administration of Taxation**.

The answer to the second question can be found in the Opinions of the Ministry of Finance on the Collection of Site Use Fees for Foreign-invested Enterprises, which is as follows:

Guangdong Provincial Department of Finance:

Your department has received the "Instructions on Issues Concerning the Collection of Site Usage Fees for Foreign-Invested Enterprises" (Yue Cai Wai [2008] No. 62). After research, we have the following opinions:

1. According to China's current land management laws, regulations and policies, whether or not a foreign-invested enterprise pays a site use fee shall be determined by the following circumstances:

1) Where the land use right is obtained by way of allocation, the foreign-invested enterprise shall pay the site use fee in accordance with the provisions because it has not paid the land transfer fee.

2) Where the land use right is obtained by way of transfer, the foreign-invested enterprise shall no longer pay the site use fee because it has already paid the land transfer fee.

3) If the land use right is obtained by lease, if the site development and land use fee have been taken into account in the calculation of rent, the site use fee shall not be paid; If the site development and land use fees are not taken into account in the rent, the lessee, i.e., the foreign-invested enterprise, shall pay the site use fee.

4) In the Sino-foreign joint venture or cooperative operation, if the Chinese party of the foreign-invested enterprise makes capital contribution or provides cooperation conditions at the price of land use rights, the Chinese investor shall pay the site use fee according to the above circumstances.

2. The site use fees paid or the land transfer fees paid by foreign-invested enterprises shall be treated as the cost of acquiring land resources for financial treatment, and urban land use tax shall be paid in accordance with the law.

21 August 8.