Notice of the State Administration of Taxation of the Ministry of Finance on Clarifying Value-added Tax Policies for Financial Real Estate Development and Education Auxiliary Services

 

Finance and Taxation (2016) No. 140

 

Provinces, autonomous regions, municipalities directly under the Central Government, cities with separate plans, State Taxation Bureau, local taxation bureau, Xinjiang Production and Construction Corps Finance Bureau:

 

The following supplementary notices on policies related to finance, real estate development, and educational support services during the pilot reform of business reform are as follows:

 

I. "Sales and Services, Intangible Assets, and Real Estate Notes" (Caishui [2016] No. 36) Article 1 (5), item 1, "principal protection income, remuneration, capital occupation fees, compensation" refers to the contract China explicitly promises investment income that can be fully recovered upon maturity. The above-mentioned non-capital-guaranteed income obtained during the period of holding financial products (including maturity) is not interest or income of an interest nature and is not subject to VAT.

 

2. Asset management products purchased by taxpayers such as funds, trusts, and wealth management products are held to maturity and do not belong to the Notes on Sales Services, Intangible Assets, and Real Estate (Caishui [2016] No. 36) Article 1 (5) ) The transfer of financial commodities referred to in item 4 above.

 

3. Securities companies, insurance companies, financial leasing companies, securities fund management companies, securities investment funds, and other institutions approved by the People's Bank of China, the China Banking Regulatory Commission, the Securities Regulatory Commission, and the Insurance Regulatory Commission to conduct financial and insurance business shall issue loans from the interest settlement date. Interest receivables that occur within 90 days are subject to VAT in accordance with the current regulations. Vacant interest receivables that occur after 90 days from the interest settlement date are not subject to VAT for the time being. VAT will be paid in accordance with the regulations when interest is actually received.

 

4. For the VAT taxable acts that occur during the operation of asset management products, the asset management product manager shall be the VAT taxpayer.

 

5. Negative differences in the transfer of financial commodities by taxpayers from January to April 2016 may be carried forward to the next tax period, which is offset by the sales of financial commodities transferred from May to December 2016.

 

6. Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Launching the Pilot Program of Changing Business Tax to Value-added Tax (Caishui [2016] No. 36) "Approved by the People's Bank of China, the Banking Regulatory Commission, or the Ministry of Commerce" and "Provincial Commerce Authorized by the Ministry of Commerce" The competent authorities and the National Economic and Technological Development Zone have approved the pilot taxpayers (including general taxpayers among pilot taxpayers) engaged in financing leasing business (including financing sale-leaseback business), including the trials of financing leasing business filed by the aforementioned departments. taxpayer.

 

7. "Regulations on Pilot Projects for Changing Business Tax to Value-added Tax" (Caishui [2016] No. 36) Article 1 (3) Item 10 "Land Payments to Government Authorities" Compensation fees for land requisition and demolition paid by government departments, initial land development costs, and land transfer income.

 

Ordinary taxpayers in real estate development enterprises who sell real estate projects they develop (except for old real estate projects that use the simplified tax calculation method), demolition compensation fees paid to other units or individuals when acquiring land can also be deducted when calculating sales. When the taxpayer deducts the demolition compensation fees in accordance with the above provisions, he shall provide materials that can prove the authenticity of the demolition compensation fees, such as the demolition agreement, the payment of the demolition parties, and the receipt of demolition compensation fees.

 

Real estate development enterprises (including a consortium of multiple real estate development enterprises) after the transfer of land to the government department to pay the land price, the establishment of a project company to develop the transfer of land, and at the same time meet the following conditions, the project company can be regulated by the project Deduct the land price paid by the real estate development enterprise to the government department.

 

(1) The three parties of the real estate development enterprise, the project company, and the government department sign a change agreement or supplementary contract to change the land transferee to the project company;

 

(2) In the case where the conditions of use, planning, etc. of the land transferred by the government department remain unchanged, the total land price remains unchanged when the change agreement or supplementary contract is signed;

 

(3) The entire equity of the project company is held by the real estate development enterprise of the transferred land.

 

9. Takeaway food sold by taxpayers who provide catering services is subject to VAT in accordance with "catering services".

 

X. For hotels, hostels, hostels, resorts, and other business accommodation venues that provide conference venues and supporting services, VAT is paid in accordance with the "Conference and Exhibition Services".

 

XI. The taxpayer shall pay VAT in accordance with the "culture and sports services" for the income obtained from operating ropeways, ferry cars, battery cars, cruise ships, etc. at the tourist sites.

 

12. R & D and technical services, information technology services, certification consulting services, and sales technology, copyright, and other intangible assets provided by general taxpayers in non-enterprise units can be calculated by simple tax calculation methods based on a 3% tax rate. tax.

 

General taxpayers in non-enterprise units provide the “Provisions on the Transitional Policies for the Pilot Transition of Business Tax to Value-added Tax” (Caishui [2016] No. 36) Article 1 (26) of "Technology Transfer, Technology Development and For related technical consultation and technical services, you can refer to the above provisions and choose a simple tax calculation method to calculate and pay VAT at the rate of 3%.

 

13. For general taxpayers who provide auxiliary education services, they can choose the simple tax calculation method to calculate and pay VAT at the rate of 3%.

 

14. Taxpayers provide armed escort services and pay VAT in accordance with "security protection services".

 

15. The decoration services provided by property service enterprises to owners are subject to VAT in accordance with "construction services".

 

16. Taxpayers who lease construction equipment to others for use and are equipped with operating personnel shall pay VAT in accordance with "construction services".

 

17.From January 1, 2017, production companies sell self-produced offshore engineering structures, or financial leasing companies and their established project subsidiaries, financial leasing companies and their established project subsidiaries, and purchase and use financial leases. Offshore engineering structures produced by domestic manufacturers that are leased by way of payment shall be subject to VAT in accordance with regulations, and the "Notice of the State Administration of Taxation of the Ministry of Finance on Value-added Tax and Consumption Tax Policies for Export Goods and Services" (Caishui [2012] No. 39) or Notice of the Ministry of Finance and the State Administration of Taxation on the Pilot Implementation of Tax Rebate Policies for Financial Leasing Goods Export Taxation (Cai Shui [2014] No. 62), but the purchaser or lessee is a Chinese and foreign company that levies value-added tax in kind Cooperative oil (gas) field mining enterprises are excluded.

 

Before the contract expires, the offshore engineering structure sales contract or financial lease contract signed before January 1, 2017 can continue to be implemented in accordance with the current relevant export tax refund policy.

 

18. Except for the policies stipulated in Article 17, this notice will be implemented from May 1, 2016. The value-added tax that has been waived or not levied before can be deducted from the value-added tax payable by the taxpayer in the following months.

 

Ministry of Finance State Administration of Taxation

 

December 21, 2016