Tax Planning For Real Estate Development Enterprises

Under the market economic system, taxation has a major impact on the income of taxpayers, and seeking the lightest tax burden is always the goal pursued by taxpayers.

Tax planning is a management activity that taxpayers can minimize tax burden, bring tax benefits to taxpayers, and ultimately bring economic benefits to taxpayers through the careful planning and reasonable arrangement of various economic activities such as investment, operation and financial management without violating national tax laws and regulations.

Tax planning plays an important role in enterprises and countries.

For enterprises, proper tax planning and adequate tax preferential policies will help to reduce the tax burden on enterprises, increase profits and available funds, enhance the competitiveness of enterprises, effectively safeguard the rights and interests of enterprises, maximize their value and promote the healthy development of enterprises.

For the country, tax planning promotes enterprises to follow the guidance of the national industrial policy, is conducive to the development of backward areas and immature industries supported by the state, is conducive to the optimization of the economic structure and industrial structure, expands the tax base of the state tax in general, increases the tax source, and is conducive to the healthy, rapid and stable development of the whole national economy.

Tax planning is the right of every enterprise, but its specific tax saving opportunities are different.

Economic factors, tax factors, management factors, tax saving skills and so on, all restrict the interests of tax planning from different aspects.

As the main body of tax planning, besides the knowledge of management and management, we must also fully understand the various tax systems and grasp the scientific and effective tax planning methods.

Judging from the current situation of our country, there are many kinds of choices, such as tax difference, preferential tax policy, enterprise organization form, business item, investment way, marketing method, surplus distribution, accounting treatment, internal enterprise, affiliated enterprise, and declaration unit, which provides broad tax planning space for taxpayers.

The development of real estate has many characteristics, such as long development cycle, complex business development and large amount of capital. The enterprises can reduce tax base, lower tax rate and increase deductible tax by means of making full use of preferential tax policies, selecting favorable management methods, choosing reasonable accounting methods and investment planning, so as to achieve the purpose of tax planning.

Here, this article intends to focus on the tax planning of real estate enterprises.

First, we should make full use of the preferential tax policies of the state to carry out tax planning through the pfer of tax burden by related parties. Compared with equity investments, financing is more flexible.

According to the thirty-ninth provision of the detailed rules for the implementation of the law of the People's Republic of China on tax collection and administration, the interest paid or charged between the affiliated enterprises in the financing business shall not exceed or lower than the amount that can not be agreed between the enterprises concerned, or exceed or lower than the normal interest rate of similar businesses.

Within this framework, an enterprise can flexibly select the maximum or minimum interest rate for financing between related enterprises so as to achieve the best tax saving benefits.

If the head office's land tax is high and the subsidiary's tax is low, when the subsidiary occupies the company's capital, the head office can use the same business lower limit interest rate to settle with the subsidiary company, so that the tax base of the company with a higher tax burden will be reduced, the reduced tax base will be pferred to the subsidiary company whose tax rate is lower; conversely, when the tax burden of the company's location is low, the same business's upper limit interest rate and the subsidiary's settlement can be used.

Two, giving full play to the role of the tax levers in the state, and choosing a favorable way of operation for tax planning, there are usually two ways to cooperate in building houses: first, the partners have traded through the original "barter" mode, and the two sides have exchanged the land use rights and the ownership of the houses with each other. One party has taken the taxable act of selling the real estate, and the other side has taken the taxable act of pferring the land use right.

For the purpose of land exchange, the two sides should pay business tax according to the value of their sales houses and the value of the pfer of land use rights.

The two parties will pay the sales tax according to the sales volume of the houses when they share their houses.

Second, the two partners invested in land use rights and monetary funds respectively, and established cooperative enterprises to build houses together.

In this regard, there are two ways of distribution of profits: first, after the completion of housing, the partners should take the risk sharing and benefit sharing distribution mode; two, after the completion of housing, the two sides will allocate housing in a certain proportion.

According to the ninth paragraph (two) of the State Taxation Administration's "notes on business tax items (Trial draft)", "no tax is imposed on the investment in real estate and the participation of investors in the allocation of profits and investment risks."

Under the first allocation method, the land use rights provided to the cooperative enterprises are deemed to be not invested in the business tax on investment, and the income from the sale of the housing by the cooperative enterprises is taxed according to the sales real estate. The profits shared by the two parties do not have to pay the business tax. In the second distribution modes, the land use right pferred to the cooperative enterprise is paid according to the pfer of intangible assets, and the sales tax of the real estate is paid according to the sales real estate when the cooperative enterprise is allocated.

So we can see that the cooperative housing project is an accounting entity with different tax burden when the income and expense are the same.

The above is to establish a cooperative enterprise and adopt the profit distribution method that is the most important part of the tax risk sharing and sharing of interests after the completion of the building. Only the sales of real estate must be taxed when the revenue is obtained from the sale of the house, and the cooperative enterprise should be established and the profit distribution method of the two parties should be allocated according to a certain proportion after the completion of the building. The party whose investment in the land use right must also pay taxes on the pferred intangible assets on the basis of the tax burden on the former way.

As for the way of cooperative housing with "barter", the partners should pay their business tax according to the value of their sales houses and the value of the pfer of land use rights.

The two parties will pay the sales tax according to the sales volume of the house when they share the sale, and the tax burden is the highest.

Therefore, enterprises should use the national tax levers to guide and choose the most favorable way of operation to achieve the purpose of tax saving planning.

Three, through the rational choice of accounting methods to carry out tax planning, through the accounting method to choose tax planning, including accrued expenses, personal income tax, the development of goods and rental commodities, business expenses, management costs and financial costs planning 6 aspects: 1., prepaid cost planning.

When the project is completed, the real estate development enterprise can advance the cost. It is expected to be paid after the project. This cost is extracted by the financial personnel according to the experience and the amount is large, the time is longer, the cost is directly included in the cost, and it has strong maneuverability.

Within the allowable range, the higher the cost, the higher the cost to be taken into account as the sales are realized. The effect is to delay the payment time of the enterprise income tax and win the time value of capital for the enterprise.

2. personal income tax planning.

Because the personal income tax is an excessive progressive tax rate, the tax payment rate of the monthly bonus payment is higher at the end of the year. According to the business performance of the month and the past experience, the enterprise can calculate the cost of the monthly bonus and make a slight adjustment at the end of the year.

It is possible to reduce the tax rate and reduce the tax burden by distributing the tax deducted from the year-end bonus to the monthly payments.

3. development of commodities and rental commodities.

Some houses may be unsalable or for other reasons due to geographical location, internal structure orientation and external environment. When housing is used for rental operations, commercial housing can be converted to rental business, from development goods to rental development product subjects, and monthly rental product amortization will be included in the cost, so that the cost of inventory will be close to the actual cost, while increasing costs and reducing taxes.

If the housing remains in the development product subject, the impairment allowance can not be used as a deduction before the income tax.

In addition, enterprises should also take advantage of national preferential tax policies, such as lowering the real estate deed tax, and in some areas, to deal with the backlog of commercial housing, to allow the previously completed vacant housing exemption from business tax, and so on, so as to speed up the sale of stock products and revitalize the funds.

4. operation cost plan.

As a real estate development enterprise, annual advertising cost is a huge cost item. Advertising expenses are often closely linked to sales performance.

According to the tax law, the advertising expenses of the real estate enterprises in each tax year should be deducted within 2% of the sales revenue.

Some enterprise groups are uniformly planned by the head office and the expenses are unified by the head office. It is very likely that the advertising expenses of the head office can exceed 2% deductions, and the subsidiary companies will not be deducted by 2%. In view of this situation, the advertising expenses of the head office can be borne by less than 2% of the subsidiary companies.

5. management fee plan.

Pension insurance, supplementary endowment insurance, work-related injury insurance, medical insurance and provident fund can be deducted before taxes, and enterprises should pay in full according to law.

In this way, the enterprise has fulfilled the statutory social security obligations, stabilized the workforce, and reduced the personal and corporate income tax burden caused by the purely paid wages.

In addition, the unreasonable burden pferred to the workers, such as the pportation expenses for public pportation, the cost of official business correspondence (deducted from a certain proportion of sales revenue before tax deduction) to allow employees to reimburse, and so on, should be converted into administrative expenses in the way of wages, so as to reduce the wage level of enterprises and reduce the income tax burden of enterprises.

6., if a real estate development company develops several real estate projects at the same time, and one of the projects is ready to be pferred, some of the capital needed by the enterprise will be paid to the bank by the project. When calculating the land increment tax, the interest can be deducted according to the interest rate of the Commercial Bank of China in the same period.

If the pfer of the project to pay the land value-added tax burden is too high, enterprises can also consider the cooperative housing to enjoy temporary exemption of land value-added tax preferential policies.

Four, through careful project investment planning and tax planning, enterprises should plan for the feasibility of the project before investing, including income, cost, profits, taxes, payback period and other factors.

When the revenue and cost of the scheme are the same, the tax burden may be the decisive factor for the adoption of the plan.

A piece of land is to cooperate with others in building or pferring or self developing. The tax difference paid by them is very great. Finally, enterprises should choose the best plan to invest.

In conclusion, there are many ways of tax planning for real estate enterprises, but they must be lawful, operational and bring real benefits to enterprises.

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