A Research On Tax Planning Of Land Value-added Tax For Real Estate Development Projects

Since 1998,the real estate industry in China has gradually developed into a pillar industry in the development of the national economy,playing a crucial role in promoting the growth of China’s GDP.However,with the rapid development of the real estate industry,housing prices have risen too quickly,and the continuous rise in housing prices caused by negative phenomena such as speculation in the real estate market has seriously affected the healthy development of China’s economy.Therefore,the central government has clearly proposed the positioning of "houses are for living,not for speculation",and timely launched the "three stable policies of" stabilizing housing prices,stabilizing land prices,and stabilizing expectations ",continuously regulating the real estate industry through policies.The national policy regulation has caused great external pressure on real estate enterprises,and at the same time,the land cost,building material cost,labor cost,tax cost,etc.of real estate enterprises are also increasing year by year.In real estate enterprises,land value-added tax is an important tax category in the tax cost.The use of progressive tax rates that exceed the rate has the characteristics of high tax burden and long liquidation cycle.At the same time,the calculation of land value-added tax is complex,involving a large amount of tax,accounting for a relatively high proportion of the tax categories involved in real estate enterprises,which greatly reduces the profit space of enterprises.On the other hand,there is a lot of planning space for land value-added tax,and tax planning for land value-added tax is an important management tool for effectively improving the profit margin of real estate enterprises.This article takes the A real estate development project as an example to conduct in-depth research on the land value-added tax liquidation of the project,analyze the tax related issues and tax disputes during the liquidation process of the project,and provide a phased land value-added tax planning plan based on the current tax policies and the tax policies of Linyi City,specifically including three stages of project development,sales,and liquidation.The planning during the project development stage mainly involves designing and planning the type of property,business framework design,and compliant operation of interest expenses to reasonably increase deductible costs,reduce value-added rates,and apply lower land value-added tax rates;The planning of the project sales phase mainly involves project pricing planning and the disposal of existing housing,utilizing tax thresholds and preferential policies to reduce the amount of land value-added tax;The planning of the project liquidation stage mainly involves planning the liquidation time and utilizing the time value of funds to create profits for the company.It is recommended that real estate enterprises strengthen their understanding of land value-added tax,improve their tax planning ability throughout the entire process of real estate development project development,sales,and liquidation,mainly from increasing deductible costs,applying lower tax rates,and utilizing tax preferential policies.Through reasonable and legal tax planning,enterprises can reduce their tax burden,increase their profits,and achieve healthy and sustainable development.