How To Register for Land Appreciation Tax In China
- Taxpayers who are involved in business or production must, within 30 calendar days of getting their business licenses, submit written applications to register for tax with tax authorities that are in charge in the locales in which the business or production operation is being conducted or in the location where tax obligations are imposed. They must honestly fill out their tax registration forms and provide the required certificates, documents and other information as required by tax authorities.
- Taxpayers who are not mentioned in the previous paragraph, with the exception of State bodies and private individuals, must, with the help of relevant documents, undergo the process of tax registration with the tax authorities in charge in their respective localities within 30 days of the date of occurrence tax obligation.
- The measures for tax registration of tax payers’ individual income are separately developed through the State Council.
- Taxpayers are required to be required to report the tax to local tax authorities in charge in the area where the property is located by signing the agreement for transfer of real estate paying the tax within a time frame stipulated by the tax authorities.
- Developers are required to make an application for settlement of LAT to the appropriate tax authority within 90 days from the date the date:
- The construction and the sale of real estate project has been completed
- Ownership of the entire project has been transferred, however construction is not yet completed.
- The title to the land is transferred (where there hasn’t yet been constructed).
Documents that are required Register for Land Appreciation Tax
- A commercial and industrial business license or similar business permit
- The contract or agreement or articles of association
- The unifying organizational code
- A passport, ID card, or any other valid ID proof from the representative of legal or a responsible owner’s member.
- Other documents and other information requested by tax authorities of an autonomous region, province or municipal directly under the state council. State Council
Office Locations and Contacts
Address of the State Administration for Taxation Yangfangdian Road, Haidian District on the 5th
State Administration for Industry and Commerce People’s Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
What Are All The Eligibility
The taxpayers of the Land Appreciation Tax include companies and units, individuals, companies and others who are able to earn income through an exchange or other form of transfer in exchange for the rights to use land owned by the State as well as buildings built on land and the associated infrastructure (hereinafter known as the transfer of real estate).
- Any unit or individual who receives earnings from the transfer the rights to use land owned by the State above-ground structures, and their associated infrastructure (hereinafter called “transfer of property”) will be tax payers under the Tax on Land Appreciation Tax (hereinafter being referred to as”taxpayers”) and must pay the Land Appreciation Tax in the manner specified in these Regulations.
- The tax on land appreciation depends on the amount of appreciation derived from the sale of real property, that is equal to the amount of the proceeds earned by the taxpayer from the transfer of real property after deducting the amount of deductible items , as specified.
The Information You Need
- The name and identification number on the passport, ID card, or other valid ID document issued by the institution, its legal representative or the owner
- The address for your business or home
- The kind of registration
- The accounting system
- The type of production and business operations
- The production scope and the scope of operation
- The total value in capital (fund) and investment
- The definition of production and operation
- The name and phone number of the chief financial officer.
- Other information that is specified in the State Administration of Taxation
The Document is required Register for Land Appreciation Tax
A tax on land appreciation is assessed on the profit from the sale of property at a rate that varies between 30 and 60 percentage. Tax on land appreciation is exempt to be used for CIT purposes.
Information that could be helpful
LAT is due at the date that land has been transferred as well as any structures on the land, and is calculated based on the actual gain. Prior to the Specific Implementing Rules of the Provisional Tax on Land Acquisition developers were able to pay a fee in lieu of to pay a provisoary amount of LAT prior to the date of the financial settlement and completion of the entire real estate development. The amount allowed was typically between one to three percent gross sales revenues, contingent on the province of residence, as the uncertain nature of the price made it impossible to estimate the value added to the project. The LAT was to be settled by four different rates ranging from 30 percent to 60 percent, once the project was complete. But this was a an accepted practice. Although the developer could be responsible for the remainder of the loan, it was often evaded or not enforced by those who defied the LAT by deliberately dividing the project into multiple sub-projects. Some leased portions of the salable portion within the scope of their project whereas others pushed back the liquidation and end of the company that was involved in the project.
Other uses of the document/certificate
Individuals and corporations (hereinafter called taxpayers) are required to be liable for Land Value-Added Taxes (hereinafter referred to as taxpayers) on their incomes resultant from the transfer of use rights on State-owned land as well as the property rights of attached buildings that are situated on the land (hereinafter called transfers of real property). The remaining (added amount) of the tax payers’ profits from real estate transfers after deducting the stipulated tax-deductible amounts will be subject to the land value added tax at the appropriate tax rate.
Taxes on land appreciation are imposed on the proceeds from the sale of land use rights owned by the state buildings, structures and the associated facilities. The amount of appreciation will be the amount of money that the taxpayer receives when transferring real property after deducting the following items:
- the amount paid to purchase the rights to use land
- the expense of developing the property
- cost of building new buildings as well as the value that is assessed of structures
- taxes relating to the transfer
- other items, as outlined in the Ministry of Finance