Legal basis: Article 9 of the Provisional Regulations of People's Republic of China (PRC) on Land Value-added Tax.
1 In case of any of the following circumstances, the taxpayer shall go through the land value-added tax liquidation procedures with the local competent tax authorities:
(1) All completed real estate development projects for sale.
(2) The overall transfer of unfinished real estate development projects.
(three) the direct transfer of land use rights projects.
(4) Real estate development projects where taxpayers apply for cancellation of tax registration.
2. In any of the following circumstances, the competent local tax authorities may require taxpayers to carry out land value-added tax liquidation:
(1) The real estate development project developed by taxpayers has passed the completion acceptance, and the total saleable construction area of real estate development accounts for more than 85% (inclusive) of the whole pre-sale (sales) area.
(2) The sales (pre-sale) license is less than three years.
(3) Real estate development projects that need land value-added tax liquidation after problems are found in tax assessment by the competent local tax authorities.
(5) Commercial houses built by real estate development enterprises, which are occupied or rented for more than one year before sale, will no longer be included in the scope of land value-added tax liquidation, and land value-added tax will be paid in accordance with the transfer policy of old houses and old buildings.