Interpretation of enterprise restructuring land tax policy

State Administration of Taxation Ministry of Finance Tax Policy Department Division of property tax
Interpretation of enterprise restructuring land tax policy

To support enterprise restructuring, March 20, 2015, the Ministry of Finance, State Administration of Taxation jointly issued the "enterprise restructuring of the land value-added tax policy," (Cai Shui [2015] No. 5, hereinafter referred to as "notice"), today regarding the interpretation of the contents as follows:
I. Q: Why should the introduction of enterprise restructuring land tax policy?
A: In recent years, restructuring and reorganization of enterprises continue to accelerate the pace, not only become effective measures to strengthen the enterprise resource integration, improve competitiveness, but also a national resolve overcapacity contradiction, adjust and optimize the industrial structure of an important way. To thoroughly implement the party's 18, eighth Second, the Third Plenum of the spirit, promote enterprise restructuring, in 2014, the State Council promulgated the "on the further optimization of corporate mergers and acquisitions market opinions" (Guo Fa [2014] 14 No.) clearly required to create a good market environment, give full play the main role in the restructuring and reorganization of enterprises, pay close attention to study and improve the land value increment tax policy enterprise restructuring involved. CPC Central Committee and the State Council for the implementation of the relevant requirements, the Ministry of Finance, State Administration of Taxation issued a study to support enterprise restructuring land value-added tax.
Second, ask: the introduction of the policy compared with the previous investment, merger-related land tax policy, what changes?
A: The introduction of enterprise restructuring land tax policy, mainly on the original enterprise restructuring land tax preferential policies and Integration specification. Specifically, first, that the company continued to invest in real estate price, land value-added tax preferential policies related to corporate mergers, the second is to regulate the land value increment tax merger-related policy statements, the consolidated merger, third is to increase the enjoyment LAT Shipping form of enterprise restructuring, enterprise corporate restructuring, corporate separation of the two forms included in the scope of concessions. In addition, to facilitate the collection and management operations, reduce disputes, "notice" further clarified when enterprise restructuring after the transfer of real estate, how to calculate the land value increment tax deductions and other related matters.
Third, ask: Why not apply the provisions of the real estate development business enterprise restructuring land tax policy?
A: real estate development enterprises NA enterprise restructuring land tax policy is not a new requirement. In 2006, in order to reduce the tax policy loopholes to avoid some real estate development enterprises to "restructuring" in the name of "transfer of real estate," in reality, to avoid land tax, the Ministry of Finance, State Administration of Taxation issued "a number of issues concerning land tax notice "(Tax [2006] No. 21), provides real estate development enterprise shall not enjoy preferential land value increment tax restructuring and reorganizing. Taking into account the actual collection, the above phenomenon still exists, the introduction of the land tax preferential enterprise restructuring continues this provision.