Tax Handling Techniques For Land Compensation

According to the sixth provision of the enterprise income tax law, the income earned by enterprises from various sources in monetary and non monetary forms should be included in the total income.

In addition to meeting the requirements of non taxable income, the financial funds obtained from the government shall be incorporated into the current taxable income to pay the enterprise income tax.

The deed tax is calculated at the paction price.

The paction price is determined by the two sides, forming a contract. The tax authorities take this as a basis and directly calculate the tax.

That is to say, when calculating the deed tax, the "land subsidy" can not be excluded.

The Ministry of finance,

Notice on the policy of resettlement of urban employment tax for the disabled employment unit (Finance and taxation [2010]121): the real estate value shall be included in the real estate, regardless of the accounting value, including the price paid for the acquisition of the land use right and the cost of land issuance.

If the plot ratio is less than 0.5, the land area shall be calculated according to the 2 times of the real estate construction area and determined accordingly.

The land price.

That is to say, when the property tax is calculated, the "land subsidy" can not be excluded.

Urban land use tax is based on the actual area of land used.

The prescribed unit tax is payable.

The formula is as follows:

The amount of urban land use tax payable = the actual occupancy area of taxable land * applicable unit tax.

That is to say, when land use tax is calculated, there is no "land subsidy".

Related links:

Q: our company shares a meter with the other unit. The electrical department gives the invoice to the other party according to the total electricity bill, and does not give me the invoice. Our company is equipped with the separate meter and the other unit's settlement according to the actual usage amount.

[reply] the third rule of invoice management stipulates that "invoices" refers to the collection and payment vouchers issued and collected in the purchase and sale of goods, the provision or acceptance of services and other business activities.

The twenty-first provision states that "all units and individuals engaged in production and business activities shall obtain invoices from the receiving party when purchasing goods, accepting services and paying for other business activities."

In accordance with the above regulations, when purchasing electricity from the power sector, your company should collect invoices from the receipts and charge them accordingly.

However, in view of the fact that your company shares a meter with the other units, the electrical department does not separate the invoices from your company. It is suggested that your company and the other units put forward the opinions on the allocation of water and electricity fees, and submit them to the competent tax authorities for approval and tax deduction.

At the same time, the original voucher and the copy of the original voucher should be made at the same time to be accounted for: the expenses listed in the original voucher should be jointly borne by several units. The portion of the burden of other units should be paid to the original voucher of the other party for settlement, and the original voucher will be added to the account voucher.