The Less Land Pfer, The Better?

In general, increasing tax links will increase the tax burden, and reducing tax links can often reduce tax burden.

Reducing unnecessary tax links is one of the basic methods of tax planning.

However, the effect of tax increase or decrease on tax burden is not fixed. Sometimes increasing tax links can also reduce tax burden.

Let's take an example.

In March 1998, Fanglin bought a piece of land at a price of 800 thousand yuan.

Because of urban development, this piece of land gradually appreciated.

In May 2003, Fang Lin company sold the land to A company at the price of 3 million yuan, and the tax payable should be calculated as follows: (the urban construction tax rate is 7%, the education fee surcharge rate is 3%, and no other expenses are considered): the [2003]16 document of the finance and taxation regulations of the finance and Taxation Bureau stipulates that from January 1, 2003, units or individuals may sell or pfer the real estate or the pferable land use right purchased by the units and individuals, with the total income minus the balance of the purchase or the original price of the real estate or the right to use the land.

Fanglin company is entitled to pfer intangible assets business tax = (3000000-800000) x 5% = 110000 (yuan), urban construction tax, education fee = 110000 * (7% + 3%) = 11000 (yuan).

According to the quick deduction method, the land value-added tax shall be (3000000-921000) x 60% - 9 21 000 x 35% = 925050 (yuan).

The application of land value-added tax is progressive, and the higher the value-added rate, the higher the applicable tax rate.

Therefore, increasing operational links, reducing value-added rates and applying tax rates are effective ways to lighten the tax burden of land value-added tax.

Fanglin can first sell the land to B company, a wholly owned subsidiary, at a price of 2 million yuan, and then sell the land to A company at the price of 3 million yuan by B company.

The tax payable for the company is: the pfer tax of intangible assets should be paid (2000000-800000) x 5% = 60000 (yuan); the urban construction tax should be paid, the education fee added = 60000 x (7% + 3%) = 6000 (yuan); the land tax payable by the government should be paid: the amount of deducting the item amount is 800000 + 60000 + 6000 = 866000 (10000 yuan), and the added value rate is = (866000).

The tax payable of B company should be paid as follows: the pfer tax of intangible assets: (3000000-2000000) x 5% = 50000 (yuan); the tax payable for urban construction and education fee = 50000 x (7% + 3%) = 5000 (yuan); the land tax payable by Xun should be paid: the amount of deducting the project amount is 200 million + 500 thousand + 5 000 = 2055000 (yuan), the added value of the value of the dam is 3000000-2055000 (3000000-2055000) 2055000, 100% = 100%;

From the above calculation results, it is not difficult to see that after the introduction of the fiscal 2003 [16] document, increasing the tax link will generally not increase the business tax burden on the sale of real property and the pfer of intangible assets (except for the purchase price), as in the previous case, the business tax burden before and after the plan is 110 thousand yuan.

The value-added tax rate and the applicable tax rate of the land value added tax after the planned segmented calculation were significantly reduced, and the tax burden was reduced by 925050-437100 - 283500 = 204450 (yuan).

In the implementation of the above plan, enterprises need to pay attention to three problems: first, it is not necessary to violate the restrictive provisions relating to related pactions in the tax collection and management law and its implementation rules when selling land or real estate between affiliated enterprises.

Therefore, taxpayers must plan ahead, in the land or real estate market prices continue to rise in the process, first with appropriate prices between the affiliated enterprises to sell, and then sold to other buyers.

For example, in the above example, Fanglin company predicted that land prices could rise to about 3 million yuan, and could sell to B companies first when land prices rose to around 2 million yuan (because land and real estate price change factors are more, and the comparability is not strong. The author believes that even if we can not predict ahead of time, as long as the related pactions maintain reasonable profit margins, there is also a certain maneuverability); two, only when the value-added rate exceeds 50%, then there is room for tax planning; three, when the property rights pfer is necessary, a certain fee must be paid. Taxpayers should make comprehensive calculations and increase revenue in the same way as the tax burden is reduced.