Transfer Of Land Use Right By "Return" Method

Recently, Hui Hua general machinery plant plans to pfer the 15 mu land to be used for expansion of the plant in 2000, and the proceeds will be used for the purchase of production equipment.

The purchase price of the land at that time was 150 thousand yuan per mu (excluding pfer fees and other expenses).

Now, the market price of this land is 200 thousand yuan per mu.

Article 1 of the Provisional Regulations on business tax stipulates: "the units and individuals who provide labor services, pfer intangible assets or sell immovable property within the territory of the People's Republic of China shall be the taxpayers of business tax, and shall pay business tax in accordance with these regulations."

According to the table of business tax rates, sales of real property (sales buildings and other land attachments) at a duty rate of 5%.

In accordance with the above provisions, if the machinery factory sells the land at market price, the business tax, urban construction tax and education fee shall be added as follows: the business tax payable shall be 15 x 20 x 5% = 15 (10000 yuan), and the urban construction tax = 15 * 7% = 1.05 (10000 yuan).

The pfer income of the Xun Machinery Factory is 15 x 20-15 x 15 - 16.5 = 58.5 (10000 yuan).

In fact, if taxpayers seriously understand the relevant tax policies, it is entirely possible to save taxes and fees.

Taxpayers can pay attention to the following two tax policies.

First, the state tax issuance document [1993]149 stipulates: "the pfer of land use rights refers to the pfer of land use rights by land users.

If the owner of the land pfers the ownership of the land and the user of the land uses the right to return the land owner, no business tax shall be levied.

In accordance with the above provisions, after the purchase of land by the machinery plant, it belongs to the land user.

Now, the factory sells 15 acres of idle land at the market price or a little lower than the market price to the land management department (that is, returning it to the landowners) without paying business tax.

Because the tax on urban construction and education is based on the actual value added tax, business tax and consumption tax.

In the process of selling land above, since the business tax is exempted, the urban construction tax and the additional education fee will naturally be exempted.

The pfer income of machinery factory is 15 x 20-15 x 15 = 75 (10000 yuan).

Second, finance and taxation [2003]16 document stipulates: "from January 1, 2003 onwards, units or individuals sell or pfer the real estate or pferable land use rights acquired by them, with the balance of all revenues minus the purchase or pfer of the original price of real estate or land use rights as the turnover."

15 mu of land will be pferred at the price of 200 thousand yuan per mu, and the tax payable is: the business tax amount is: (sales revenue - purchase original price) * applicable tax rate = (15 x 20-15 x 15) x 5% = 3.75 (10000 yuan). The urban construction tax shall be 3.75, 7% = 0.26 (10000 yuan). According to the above policy, machinery factory

In the two ways above, the return of land to land owners is relatively high, and the latter is easy to operate.

Taxpayers can choose the mode of pfer according to the actual situation.