How to pay taxes on the company’s income from selling houses
In recent years, with the fluctuations in the real estate market, many companies have chosen to sell their properties to raise funds or adjust their asset structure. However, the tax issues involved in corporate house sales are more complex and require calculation and declaration based on specific circumstances. This article will combine the hot topics and hot content on the Internet in the past 10 days to conduct a structured analysis of the tax treatment of the company's house sales income.
1. Main taxes on a company’s income from selling houses
When a company sells property, the following taxes are usually involved:
| tax type | Tax calculation basis | tax rate | Remarks |
|---|---|---|---|
| value added tax | sales minus acquisition costs | General taxpayers: 9% or 5% (simplified tax calculation) | Small taxpayers: 5% |
| land value added tax | Value added (income minus deductions) | 30%-60% excess progressive tax rate | Liquidation declaration required |
| corporate income tax | total profit | 25% (basic tax rate) | High-tech enterprises can enjoy preferential treatment |
| stamp duty | Contract amount | 0.05% | Both the buyer and seller need to pay |
| urban maintenance and construction tax | VAT amount | 7%, 5% or 1% | Determined by taxpayer’s location |
2. Tax treatment under different circumstances
1.Self-owned property for sale: If the company sells its own fixed assets (such as office buildings), it needs to distinguish whether it exceeds the original value. The amount exceeding the original value is subject to value-added tax (general tax 9% or simplified tax 5%) and corporate income tax.
2.investment properties for sale: For investment real estate measured at fair value, the difference when sold is included in the current profit and loss, and value-added tax (generally calculated tax of 9%) and corporate income tax are required.
3.Calculation of land value-added tax: Deduction items of land value-added tax include land transfer fees, development costs, real estate development expenses, etc. The specific calculation method is as follows:
| Value-added and deduction items ratio | tax rate | Quick calculation deduction factor |
|---|---|---|
| ≤50% | 30% | 0 |
| 50%-100% | 40% | 5% |
| 100%-200% | 50% | 15% |
| ＞200% | 60% | 35% |
3. Tax planning suggestions
1.Reasonably choose tax calculation methods: General taxpayers can choose general tax calculation (9%) or simplified tax calculation (5%), and the tax burden needs to be calculated based on the proportion of purchase cost.
2.Take advantage of tax incentives: Some areas have policies to reduce or exempt land value-added tax. For example, preferential tax rates may apply to old renovation projects.
3.Split income: For properties containing decoration and equipment, separate contracts can be signed to reduce the tax base.
4.Pay attention to the filing deadline: Land value-added tax must be prepaid within 30 days after signing the contract, and corporate income tax must be prepaid quarterly.
4. Analysis of hot cases
Recently, a listed company sold an office building in Shanghai, with a transaction price of 120 million yuan (original value of 80 million yuan). The tax treatment is as follows:
| Project | Amount (10,000 yuan) |
|---|---|
| sales revenue | 12,000 |
| Value-added tax (simplified tax calculation 5%) | 571.43 |
| Land value-added tax (value added 40 million) | 1,250 |
| Corporate income tax (rate 25%) | 1,000 |
| Comprehensive tax rate | 23.5% |
It can be seen from this case that the company's comprehensive tax burden on selling houses may exceed 20%, so capital planning needs to be done in advance.
5. Frequently Asked Questions
Q: Can a company be exempted from VAT when selling a house?
A: According to Caishui [2016] No. 36, enterprises selling real estate acquired before April 30, 2016 can choose simplified tax calculation to pay value-added tax at a rate of 5%, but there is no tax exemption policy.
Q: Under what circumstances can land value-added tax be assessed and collected?
A: For items that cannot be liquidated, the tax authorities can assess and levy them based on a certain proportion of sales revenue (usually 5%-8%).
Q: Do I still need to pay taxes on losses from selling a house?
A: Value-added tax and land value-added tax may still be incurred, but corporate income tax can deduct losses.
To sum up, the tax issues involved in selling a company’s house require professional planning. It is recommended that enterprises consult a tax accountant before transactions and choose the best solution based on their own circumstances to ensure compliance and reduce tax burdens.
check the details
check the details
en
