Professor Hu Junkun's "A Look Ahead at Land Value Added Tax Legislation and the Practice and Planning of Land Value Added Settlement"
A Look Ahead at Land Value Added Tax Legislation and the Practice and Planning of Land Value Added Tax Settlement [Course Background] The draft of the "Land Value Added Tax Law of the People's Republic of China" has been released for public comment. The draft reveals significant changes to the future land value added tax: a higher legal level, adjustments to the scope of taxation, and strengthened legal responsibilities… Should real estate companies prepare for this as soon as possible? In reality, for real estate development companies, the key is to thrive in the present: Given the backdrop of intensive national regulation, and especially the lack of rigor, scientific basis, and rationality in tax policies, how can they effectively manage land value-added tax settlement and mitigate settlement risks? In the context of tax collection and administration entering an era of data-driven intelligence, how can real estate development companies effectively avoid the audit risks associated with land value-added tax? And how can they implement land value-added tax planning to improve corporate efficiency without violating tax laws and regulations? [Target Audience] This course is suitable for CFOs, tax directors, finance supervisors, tax supervisors, finance managers, tax managers, tax managers, finance managers, and accounting and tax personnel in real estate development companies. [Course Benefits] Through this course, you will gain the following benefits: 1. Understand the future development trend of land value-added tax and conduct forward-looking project planning; 2. Grasp the doubts and difficulties regarding the taxable objects and taxable scope of land value-added tax, and further understand land value-added tax; 3. Understand the meaning of land value-added tax settlement unit, correctly grasp the settlement time, and avoid tax-related risks; 4. Review the rules for recognizing and measuring real estate sales revenue under land value-added tax, and discover the balance of interests involved; 5. Explore techniques for deducting costs and expenses related to land value-added tax, and effectively implement planning within the framework of not violating the law; 6. Master the preferential policies for land value-added tax and their application, and understand their essence to avoid planning errors; 7. Accurately fill out the land value-added tax settlement declaration form and submit relevant materials as required to avoid tax-related risks; 8. Understand the current mainstream tax planning strategies for land value-added tax, identify their shortcomings, and avoid planning risks; 9. Comprehensively improve the tax administration level of land value-added tax settlement and effectively mitigate the tax risks of real estate enterprises. [Faculty Introduction] Mr. Hu holds a Master of Laws degree and is a certified tax agent. He has published over 100 papers in journals and newspapers such as *Fiscal Research*, *Economic Research Reference*, *Economic News*, *International Taxation*, *Accounting Communication*, *Accounting Research*, *Accounting Monthly*, and *Taxation and Economy*, as well as over 600 practical articles. More than 20 of his articles have been reprinted in full by the *China National People's Congress Press*. He has published books including *Filing the New Tax Return*, *Interpretation of the Individual Income Tax Law*, *Corporate Income Tax Settlement Handbook*, and *Practice and Planning for Individual Income Tax Comprehensive Income Settlement*. He has long-term collaborations with educational and training institutions such as China Accounting Network School, Dongao Accounting Online, Gaodun Finance, and Jin Xuhong, and is known in the industry as a "Tax and Finance Encyclopedia" and a "Living Dictionary of Tax Law." He has conducted lectures and training sessions in more than 100 cities, including Beijing, Shanghai, Shenzhen, Guangzhou, and Nanjing. The teaching style is characterized by its ability to integrate legal logic with accounting rigor, achieving a harmonious unity between rich theory and practical application, and blending wisdom with humor, while showcasing professionalism through banter. [Course Syllabus] I. A Look Ahead at the Legislation of the Land Value Added Tax Law 1. Why is the land value-added tax considered a "monster tax"? 2. Can't value-added tax and land value-added tax coexist? 3. How will the land value-added tax law change in the future? (1) Taxpayers: Why not learn from other laws? (2) Scope of taxation: Significant adjustments have been made. (3) Revenue recognition: requires more expertise (4) Deduction items: Reconstructed based on tax administration practice (5) Tax rate: Maintaining the current rate is the best option. (6) Assessed collection: an incurable wound (7) Tax incentives: possibly the biggest mistake (8) Tax declaration: A somewhat terrifying aspect of the "streamlining administration, delegating power, and improving services" reform. ... 4. What can real estate development companies do in legislation? (1) Do you understand the most advanced tax planning? (2) One may have selfish motives, but one should be fair even more! ... II. Review of the Elements of the Land Value Added Tax System 1. Who are the taxpayers of land value-added tax? 2. Do finance and tax personnel really understand the scope of taxation? (1) Is land value-added tax levied on the transfer of small property rights? (2) Is land value-added tax levied on the transfer of permanent use rights? (3) Should land value-added tax be paid on real estate transactions for which the transfer of ownership has not been completed? (4) Is land value-added tax levied on the transfer of parking spaces and garages? 3. After deducting items, is it female or male? 4. Is it like taking a feather from a passing goose, taxing each time you leave? 5. Assessment-based taxation: innovation or a last resort? ... III. Determination of the Conditions and Objects for Land Value Added Tax Settlement 1. Who will break the silence regarding the settlement of land value-added tax? 2. Under what conditions should liquidation be initiated? How should this be determined? (1) What is the difference between liquidation that should be liquidated and liquidation that can be liquidated? (2) How to grasp the liquidation time point in rolling development? (3) How to determine whether a building is completed, sold, used by the owner, or rented out? (4) How to accurately determine whether a pre-sale permit has been held for three years? 3. Settlement Units and Objects of Land Value Added Tax (1) How is the land value-added tax settlement unit determined? (2) Are liquidation units divided into two, three, or four categories? (3) Do basements and parking spaces belong to residential properties or other types of properties? (4) How to distinguish between ordinary residential housing and non-ordinary residential housing? (5) Can residential and commercial buildings be combined for liquidation? (6) Does the merger, division, or investment business involve liquidation? 4. Tax planning during the initial stage of land value-added tax settlement. (1) How should one choose between liquidation and liquidation? (2) Can the cancellation of a zombie company circumvent liquidation? (3) Is the choice between phased development and rolling development right or wrong? ... IV. Determination of Deductible Items and Their Amounts in Land Value Added Tax Settlement 1. Land acquisition costs and their deductions (1) How to determine the cost of land acquired through bidding, auction or listing? (2) How to deduct costs when acquiring land through investment? (3) How much cost is incurred in acquiring land through debt settlement? (4) How should the deducted costs be handled when land is acquired through equity? (5) How should the land cost be determined if the land is acquired through free allocation? (6) Can the land valuation increase be deducted as the land acquisition cost? (7) Are the deed tax, land use tax, etc., incurred in order to acquire the land included in the land cost? (8) What details should be paid attention to in the handling of vouchers and invoices when land is acquired in different ways? (9) Are commissions and brokerage fees incurred in acquiring land also included in the land cost deduction? (10) Are the demolition costs incurred in order to acquire land also considered as land acquisition costs? (11) When land is acquired in exchange for a project, the project construction cost can also be used as the land acquisition cost. (12) Can land idling fees be deducted? What are the differences between land value-added tax and corporate income tax? 2. Real estate development costs and their deductions (1) Can all actual development costs be deducted? (2) Can development costs for which invoices have not been obtained be deducted? (3) How to confirm and judge real estate development costs? (4) What are the main factors that constitute construction and installation costs? (5) Can the cost of an invoice with an incorrect remarks column be deducted? (6) On what basis does the tax bureau judge whether the construction costs of real estate companies are reasonable? (7) How should development costs be shared between ordinary residential housing and other product types? (8) What if the high commercial value-added rate cannot be avoided if the cost is allocated according to the building area? (9) What are the special requirements for the treatment of relocation and resettlement expenses under land value-added tax? (10) How should the development costs of underground parking spaces and garages be shared? (11) Can additional deductions be made for purchasing unfinished building projects and continuing their development? (12) Can the expenses of the sales office also be included in the development cost? (13) Under what conditions can clubhouses, kindergartens, and primary schools be included in the cost of public supporting facilities? (14) Can decoration and renovation expenses be deducted as a land value-added tax item? And can additional deductions be made? (15) What details need to be paid attention to in the land value-added tax treatment of materials supplied by Party A? 3. Period expenses and their deductions (1) How should the interest expense on loans incurred by enterprises be deducted from land value-added tax? (2) What are the conditions for deducting interest expenses on an actual basis? How to distinguish between financial institutions and commercial banks? (3) Is the interest expense of entrusted bank loan eligible for proof from financial institutions? (4) Can the financial advisory fees of commercial banks be deducted as a land value-added tax settlement item? (5) When all funds are self-owned, should interest expenses also be calculated and deducted? (6) Is it permissible for a woman to marry twice if she has both borrowed funds and her own funds? 4. How is land value-added tax calculated when transferring an old house? (1) What should be done about the settlement of land value-added tax if there is no cost on the books or an invoice for the old house? (2) How to determine the deductible items when transferring an old house? (3) If there is a purchase invoice, is an appraisal still required when transferring the old house? (4) Can land value-added tax be assessed and levied when an old house is transferred? 5. Taxes and their deductions 6. Additional Deduction ... V. Recognition and Measurement of Land Value Added Tax Revenue During Liquidation 1. Recognition and Measurement of Real Estate Sales Revenue (1) Should the pre-sale proceeds also be recognized as revenue during liquidation? (2) How to recognize revenue when selling real estate in installments? (3) How is sales revenue measured when a property is sold under a mortgage? (4) How to recognize income such as deposits, down payments, and penalties? (5) Can discounts and allowances be deducted from sales revenue? (6) How should income be recognized when transferring the permanent right to use an underground parking space? (7) Should adjustments be made when the property transfer price is significantly low? (8) How to recognize revenue when the area of the commercial housing is inconsistent with the actual measured area? 2. Recognition and Measurement of Deemed Sales Revenue (1) Under what circumstances should land value-added tax be treated as a sale? (2) Under the condition of deemed sale, how is revenue recognized? (3) When should revenue be recognized for deemed sales? (4) Difference between land value-added tax and corporate income tax on deemed sales 3. Land value-added tax policy for fees collected on behalf of others and extra-price charges. 4. How should demolition income be handled for land value-added tax purposes? 5. How should government compensation or refunds be handled for land value-added tax purposes? ... VI. Difficult Issues in Land Value Added Tax Settlement 1. Is it necessary to prepay taxes for sales that continue after liquidation? 2. How should taxes be calculated and paid when selling the remaining properties after liquidation? 3. What tax rate applies to the sale of remaining properties after liquidation? 4. Is a second liquidation possible after the initial liquidation? 5. Under what circumstances can income tax be refunded after liquidation? ... VII. Completion and Submission of Land Value Added Tax Settlement Declaration Form 8. On-site interaction: You ask questions, I answer them! Instructor Profile: Teacher Hu Junkun u Domestic renowned finance and tax expert Registered Tax Agent, Master of Laws Currently a specially appointed professor at the Beijing Institute of Finance and Taxation and Ruichang University of Finance and Economics. We have served as long-term tax advisors for numerous benchmark enterprises, specializing in corporate tax planning research and practical operations. He has published over 100 academic papers and over 600 practical articles in journals such as *Fiscal Research*, *Economic Research Reference*, *Foreign Taxation*, *Accounting Communication*, and *Taxation and Economy*. More than 20 of his articles have been reprinted in full by the Renmin University of China's journal reprint series. He has also published books such as *Filing the New Tax Return*, *Interpretation of the Individual Income Tax Law*, and *Corporate Income Tax Settlement Handbook*. Currently a specially appointed professor at the Beijing Institute of Finance and Taxation and Ruichang Finance and Taxation College; a special expert of the China Construction Finance and Taxation Association and China Tax Network; a Q&A expert of China Taxpayer Q&A Network; and a member of the Individual Income Tax Expert Database. He enjoys the titles of "Finance and Tax Encyclopedia" and "Living Dictionary of Tax Law" in the industry. He has long been engaged in teaching courses on tax policy implementation, tax planning, tax audit risk prevention and control, investment and financing operations, and income tax settlement in the construction and real estate industries, and has been highly praised by students. He has given lectures and training sessions in more than 100 cities including Beijing, Shanghai, Shenzhen, Guangzhou, and Nanjing. Teaching characteristics: He always manages to integrate legal logic with accounting rigor, achieving a harmonious unity between rich theory and practical application, displaying wisdom with humor, and professionalism with banter. The courses taught include: A Review and Case Analysis of Difficult Tax Issues for Enterprises Optimization and Design of Individual Income Tax Burden for Enterprises and Institutions under the Background of Transparent Wages Successes and failures of mainstream tax planning strategies and schemes — Why can't you use other people's tax plans? Tax Control Strategies and Case Studies for Enterprises in the Era of Data Intelligence Planning for maximizing corporate profits and increasing personal wealth under the concept of big data governance 20 Technical Principles and Case Studies for Corporate Tax Crisis Response Corporate Tax Audit Response and Risk Prevention in the Internet + Big Data Era Transformation of Pharmaceutical Companies' Business Models and Response to Financial and Tax Risks under the Two-Invoice System Bill processing techniques to maximize corporate profits under the background of big data tax administration Contract Management and Invoice Processing for Enterprises in the Era of Comprehensive Value-Added Tax Synergy between corporate tax management and contract/invoice management in the era of big data N preferential policies for corporate income tax and corporate income tax final settlement Prevention First: Eliminating Hidden Dangers and Plugging Loopholes – Corporate Income Tax Payment Risk Prevention New Thinking on Corporate Income Tax Payment Risk Management under the Concept of Linking the Rule of Law and Big Data Tax planning and risk control in corporate capital utilization Supply chain design for optimizing VAT burden across all industries in the era of comprehensive VAT Analysis of the flaws and drawbacks of classic tax planning strategies and adjustments based on classic case studies Corporate Income Tax Post-Taxation Management and Risk Control Complete Guide to Land Value Added Tax Settlement for Real Estate Enterprises Legislation on Land Value Added Tax and Handling of Difficult Issues in Land Value Added Tax Settlement Tax treatment and tax planning for major corporate mergers and acquisitions Tax risks and their planning and management in corporate financing activities Contract signing requires skill; cutting taxes and costs requires ruthless tactics. Tax planning and classic case analysis for real estate development business Tax Traps in Real Estate Development Business and How to Avoid Them Contractual tax control strategies and tax avoidance applications based on the company's business chain, along with case studies. Corporate Tax Crisis Management Strategies under the Big Data Governance Concept Analysis of Enterprises' Tax Crisis Response Patterns and Classic Cases in the Context of "Multidimensional" Tax Administration A Look Ahead at Land Value Added Tax Legislation and Land Value Added Tax Settlement and Planning Analysis and Correction of the Errors and Shortcomings of Mainstream Tax Planning Approaches Intensive Training Camp for Financial and Tax Governance Capabilities of Real Estate Enterprises in the Era of Data Intelligence (Series of Courses, 6-8 Days) Innovation in Tax Governance Concepts for Construction and Real Estate Enterprises in the Era of Data Intelligence Interpretation and Response to a Series of New Policies on Tax Reduction and Burden Reduction, Including Value-Added Tax Reform and Upgraded Preferential Treatment for Small and Micro Enterprises Tax Risk Management and Audit Response for Contracts, Invoices, and Vouchers of Construction and Real Estate Enterprises in the Big Data Era Application and Case Analysis of Contract Tax Control Strategies for Construction and Real Estate Enterprises under the Background of Tax Reduction and Burden Relief Response to Tax Audit Risks for Enterprises Following Adjustment of Social Security Contribution Collection Entities and Transformation of Individual Income Tax Utilizing tax incentives and legal tax avoidance: making good use of policies and planning rationally. Interpretation and Planning of the Latest Individual Income Tax Law and Supporting Collection and Management Measures New Thinking on Tax Risks and Management During Year-End Closing New Corporate Income Tax Policy and New Thinking on Managing Difficult Issues in Annual Tax Payment