State Administration of Taxation, Circular on Issues Relevant to the Prepayment of Enterprise Income Tax of Real Property Developers
国家税务总局关于房地产开发企业所得税预缴问题的通知
Rate of tax prepayment raised to 20% for pre-sold premises.
Date:
May 2008
CLP Reference: 3230/08.04.07
Promulgated: 07 April 2008
Effective: 01 January 2008
Keywords (click to search): [prepayment of enterprise income tax] [real property developer] [pre-sale of residential premises] [economically affordable residential premises]
Issued: April 7 2008
Effective: January 1 2008
Main Contents: Real property developers shall prepay enterprise income tax on a quarterly or monthly basis according to the actual profits in the year. With respect to income from presale of residential premises, commercial premises and other buildings, fixtures and ancillary facilities prior to the completion of construction, the quarterly or monthly projected profit shall be calculated based on the stipulated projected profit rate, and be included in the total profit for tax prepayment. The monthly or quarterly profit shall be adjusted according to the actual profit after the construction has been completed and the deductible costs settled (Article 1). According to Article 2, the projected profit rate shall provisionally be determined based on the following standards:
|
Type of construction project: |
Projected profit rate: |
|
Projects of non-economically affordable residential premises: |
|
|
(i) in urban and suburban areas of where the people’s government of the province, autonomous region, municipality directly under the central government or city with an independent development plan is located |
>= 20% |
|
(ii) in urban and suburban areas of cities at the prefecture level, districts, leagues and prefectures |
>= 15% |
|
(iii) in other areas |
>= 10% |
|
Projects of economically affordable residential premises that comply with relevant provisions |
>= 3% |
To continue reading this article, you must be a subscriber.
The rest of this article is available to subscribers only. Subscribe now to continue reading this article and to have full access to all other articles and full-text translations.