Enterprise income tax treatment
In terms of enterprise income tax treatment, government compensation funds belong to fiscal funds, which are treated as income and do not offset related costs and expenses. Taxation should judge whether government subsidies belong to non-taxable income. If it is non-taxable income, it is not included in the taxable income of the current period when it is received, but the costs and expenses formed by this income cannot be deducted before tax. If it is not taxable income, it shall be included in the taxable income of the current period when it is received, and the costs and expenses formed by its expenditure may also be deducted before tax in accordance with the provisions of the tax law.
Regarding the handling of the above-mentioned enterprise income tax, the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on the Handling of Enterprise Income Tax with Special Financial Funds (Caishui [2009] No.87) stipulates that the financial funds obtained by enterprises from the financial departments and other departments of the people's governments at or above the county level during June 5438+1 October1shall be included in the total income. From June 2008 to February 3, 2008+654381,if the following conditions are met at the same time, it can be regarded as non-taxable income and deducted from the total income when calculating the taxable income: (1) (2) The financial department or other government departments that allocate funds have special fund management measures or specific management requirements for the funds; (3) An enterprise shall separately account for funds and expenditures incurred with funds. The above-mentioned non-taxable income used for expenses shall not be deducted when calculating taxable income; Depreciation and amortization of assets used for expenses shall not be deducted when calculating taxable income. At the same time, the document stipulates that after the enterprise treats the financial funds that meet the prescribed conditions as non-taxable income, the part that the government department has not spent within five years (60 months) and has not returned the financial or other allocated funds should be re-included in the total income in the sixth year after obtaining the funds; The expenditure of financial funds re-included in the total income is allowed to be deducted when calculating the taxable income.
For example, 20 10, the taxable income of the real estate enterprise in this period is 100000 yuan, in addition to government subsidy income. If 5 million yuan is non-taxable income (the management expenses of the management department in that year were 3 million yuan), the taxable income in 20 10 is still130,000 yuan (1000+300). If 5 million yuan is not taxable income, it should be included in the current taxable income, and its expenses of 3 million yuan can also be deducted before tax, so the taxable income of this real estate enterprise in 20 10 is150,000 yuan (1000+500).
Land value-added tax treatment
In the treatment of land value-added tax, the compensation income of 5 million yuan for demolition should be deducted from the compensation expenditure for demolition, rather than being treated as the non-operating income of the enterprise alone. In other words, this income is not regarded as land value-added tax income, but should offset the compensation expenditure in the development cost, thus reducing the amount of deduction items when calculating land value-added tax.
Regarding the treatment of the above-mentioned land value-added tax, Article 7 of the Detailed Rules for the Implementation of the Provisional Regulations on Land Value-added Tax stipulates that the deduction items for calculating the value-added amount are specifically: the expenses for developing land, building new houses and supporting facilities, which refer to the actual costs of taxpayers' real estate development projects, including compensation fees for land acquisition and demolition, preliminary engineering fees, construction and installation engineering fees, infrastructure fees, public supporting facilities fees and indirect development fees. The scope of compensation items for land acquisition and demolition in the document is clearly defined as: including land acquisition fee, farmland occupation tax, labor resettlement fee, net compensation expenditure for demolition of above-ground and underground attachments, resettlement housing expenditure, etc. Although all the expenses of the real estate enterprise's demolition compensation can be regarded as the development cost, the tax law stipulates "net expenditure", that is, the actual net expenditure after deducting all the compensation expenses from all the income in the demolition process. Therefore, the government's compensation for the demolition of enterprises should be deducted from the actual compensation for the demolition of enterprises. ?
For example, after purchasing the land use right, the real estate enterprise actually spends 20 million yuan on compensation for demolition, but when it receives 5 million yuan from the government for compensation for demolition, when calculating the land value-added tax, the net compensation for demolition that constitutes the development cost minus the project is 6.5438+0.5 million yuan, not 20 million yuan. Similarly, subsidy income's 5 million yuan is not used as the project income for calculating the land value-added tax.
Business tax treatment
Whether to pay business tax on compensation income for demolition should be handled according to different situations. If the real estate enterprise is responsible for the demolition after land acquisition, rather than being entrusted by the government, the government subsidy income it obtains is not taxable income of business tax, and it is not required to pay business tax. Enterprises entrusted by the government or its relevant departments to carry out demolition, demolition compensation income belongs to the "service industry-agency industry" income in the business tax, and the agency price difference income should pay business tax.
Regarding the above-mentioned business tax treatment policy, Article 2 of the Notice of State Taxation Administration of The People's Republic of China on the Business Tax Issues Concerning the Government's Recovery of Land Use Rights and Taxpayers' Compensation for Demolition (Guo [2009] No.520) stipulates that taxpayers should pay business tax in accordance with the "construction" tax item when accepting the entrustment to demolish and level the land and paying the demolition compensation fee to the original land users on behalf of the entrustment; The act of paying the demolition compensation fee to the original land user on behalf of the client belongs to the "service industry-agency industry" behavior, and the business tax should be calculated and paid according to the balance of all the income obtained from providing agency services MINUS the demolition compensation fee paid by the client.