China News Service, Beijing, June 16 (Reporter Zhao Jianhua) The Ministry of Finance and the State Administration of Taxation of China announced on the 16th that in order to support the restructuring and reorganization of enterprises and optimize the market environment, they will continue to implement relevant regulations from January 1, 2021 to December 31, 2023. Land appreciation tax policy.
The enterprise is restructured as a whole in accordance with the relevant provisions of the "Company Law of the People's Republic of China". Before the restructuring, the enterprise transfers or changes the state-owned land use rights, the buildings on the ground and their attachments (hereinafter referred to as real estate) to the enterprise after the restructuring, temporarily not expropriated Land appreciation tax.
The overall restructuring means not changing the investment subject of the original enterprise and inheriting the rights and obligations of the original enterprise.
In accordance with legal provisions or contractual agreements, if two or more enterprises are merged into one enterprise and the original enterprise investment entity exists, the land value added tax shall not be levied on the original enterprise's transfer or change of real estate to the merged enterprise.
The enterprise is divided into two or more enterprises with the same investment subject as the original enterprise, and the original enterprise transfers or changes the real estate to the enterprise after the division, and the land value-added tax is temporarily not levied.
Units and individuals use real estate as shares for investment during restructuring and reorganization, and land value-added tax will not be levied for the time being when they transfer or change their real estate to the invested enterprise.
The above-mentioned temporary exemption of land value-added tax policy does not apply to situations where either party to the real estate transfer is a real estate development enterprise.
According to data released by the Ministry of Finance, from January to April this year, the national land value-added tax revenue was 270 billion yuan, a year-on-year increase of 40.6%.
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