Whether the land appreciation deduction includes land use tax

One of the items in the calculation of LAT deduction is tax, but this tax is related to the transfer of real estate, and land use tax is not within this scope.

Deductions include land use tax.

Article 7 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Land Appreciation Tax (Cai Fa Zi [1995] No. 6) stipulates that the deduction items listed in Article 6 of the Regulations for calculating the value-added amount are specifically as follows: (5) The taxes related to the transfer of real estate refer to the urban maintenance and construction tax and stamp duty paid when transferring real estate. The surcharge paid for the transfer of real estate can also be deducted as tax.

According to the above-mentioned regulations, the taxes and fees that can be deducted when liquidating LAT include: urban construction tax, education surcharge and local education surcharge, but excluding value-added tax and enterprise income tax.

1) The real estate development expenses cannot be credited to the amount paid for obtaining land use rights and the compensation for land acquisition and demolition.

2) The real estate development cost cannot be recorded in the preliminary construction cost, infrastructure cost and public supporting facilities fee.

3) When a real estate development enterprise purchases building materials, the cost of self-purchased building materials cannot be double-calculated and deducted.

4) The administrative expenses incurred by the administrative department (headquarters) of the enterprise for the organization and management of production and business activities shall be recorded in the management expenses, and shall not be recorded in the development indirect costs.

5) If a project is developed in phases or multiple projects are developed at the same time, the interest expenses of the general loan obtained shall be reasonably apportioned according to the project.

6) The public supporting facilities fees jointly incurred by multiple (or phased) projects shall be reasonably apportioned according to the project.

How to calculate the amount of LAT deductions?

1) If you can provide real estate appraisal**, the amount of deduction items is:

The amount paid for the acquisition of land use rights + the assessment of old houses and buildings** (replacement cost, discount rate of newness) + taxes paid at the time of transfer (business tax, urban maintenance and construction tax, education surcharge and reform, local education surcharge and stamp duty) + other allowable deductions.

2) If you cannot provide real estate appraisal**, but can provide a purchase invoice, the amount of deduction is:

The invoice amount of the purchase of the house (1+5% of the years) + the tax paid at the time of transfer (business tax, urban maintenance and construction tax, education fee surcharge, local education surcharge, stamp duty) + the deed tax paid at the time of purchase + other allowable deduction years = the cumulative month of actual ownership of real estate 12

3) If there is no assessment** and the purchase invoice cannot be provided, the competent local taxation authority shall refer to the deed"The value of the property, the land"Approved house purchase**Calculate the amount of deduction items:

Land value of the property (1+5% tenure) + taxes paid at the time of transfer (business tax, urban maintenance and construction tax, education surcharge, local education surcharge, stamp duty) + deed tax paid at the time of purchase + other allowable deduction years = cumulative months of actual ownership of real estate 12

How to determine the LAT deduction items? How to calculate the amount of deduction items for land enhancement and bridge celebration difference tax? The relevant content of these two questions has been sorted out and shared with you in detail, have you mastered them after learning?

If a unit transfers the right to use state-owned land and obtains income, it shall pay LAT according to the value-added amount of the income obtained from the transfer minus the amount of statutory deductions.

Items that are allowed to be deducted by hand for LAT purposes.

According to Article 6 of the Provisional Regulations of the People's Republic of China on Land Appreciation Tax (Order No. 138 of the People's Republic of China), the deduction items for calculating the value-added amount:

1) The amount paid for obtaining the right to use the land;

2) the cost and expense of developing the land;

3) The cost and expense of the new house and the supporting facilities, or the assessment of the old house and building**;

4) Taxes related to the transfer of real estate;

5) Other deductions stipulated by the Ministry of Finance.

How is LAT calculated?

LAT is calculated on the basis of the value-added amount obtained by the taxpayer from the transfer of real estate and the applicable tax rate.

The formula for calculating LAT is as follows:

LAT payable = value-added Applicable tax rate = (income - allowable deductions) Applicable tax rate.

LAT is subject to four levels of progressive tax rates for excess:

1. The part of the value-added amount that does not exceed 50% of the amount of the deducted items shall be subject to a tax rate of 30%.

2. The part of the value-added amount exceeding 50% of the amount of the deducted items and not exceeding 100% of the amount of the deducted items shall be subject to a tax rate of 40%.

3. The part of the value-added amount exceeding 100% of the amount of the deducted items and not exceeding 200% of the amount of the deducted items shall be subject to a tax rate of 50%.

4. The part of the value-added amount exceeding 200% of the amount of the deducted items shall be subject to a tax rate of 60%.

Note: Taxpayers can be exempted from LAT if the following circumstances occur:

1. Construction of ordinary standard dwelling**, the value-added amount does not exceed 20% of the amount of the deducted item;

2. Real estate that needs to be expropriated and recovered in accordance with the law due to national construction can enjoy preferential exemption.