1. VAT. The disposal of debt-paying assets belongs to sales in tax treatment. When the debt-paying assets are VAT taxable goods, VAT shall be paid in accordance with the Provisional Regulations of People's Republic of China (PRC) on VAT.
2. Business tax. When disposing of debt-paying assets, business tax treatment is divided into the following three situations:
(1) Pay business tax according to the transfer income. When transferring the ownership and use right of patent rights, trademark rights and other rights assets in order to repay debts, the business tax shall be calculated and paid according to the provisions of the Provisional Regulations of the People's Republic of China on Business Tax with the income obtained from the transfer as the taxable value.
(2) Business tax shall be calculated and paid according to the income obtained from disposal minus the pricing balance. When a financial enterprise disposes of the paid-off real estate or land use right, it shall pay taxes in accordance with the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Several Policy Issues concerning Business Tax (Caishui [2003] 16), that is, the turnover is the balance after deducting the pricing of real estate or land use right at the time of debt repayment. This is a tax policy that needs special attention when disposing of debt-paying assets.
(3) Exemption from business tax. Financial enterprises shall not levy business tax on equity transfer if they transfer equity acquired by paying off debts.
3. Land value-added tax. Financial enterprises shall calculate and pay land value-added tax in accordance with the Provisional Regulations of People's Republic of China (PRC) on Land Value-added Tax when disposing of state-owned land use rights, above-ground buildings and their attachments. Because the calculation of land value-added tax is complicated, it will be levied according to a certain proportion of disposal income in practice.
4. Stamp duty. Financial enterprises shall pay stamp duty when transferring the ownership, copyright, trademark exclusive right, patent right and proprietary technology use right of mortgaged property.
5. Income tax. The income obtained from the disposal of debt-paying assets by financial enterprises shall be included in the taxable income of income tax and carried forward according to the taxable cost determined when the debt-paying assets are obtained. If the amount of depreciation or amortization of debt-paid assets calculated according to the taxable cost has been deducted before tax, the balance after deducting the depreciation or amortization deducted before tax according to the taxable cost at the time of debt repayment shall be deducted before income tax. If the debt-paying assets are losses at the time of disposal, tax treatment shall be carried out in accordance with the provisions of the Administrative Measures for Deduction before Income Tax on Enterprise Property Losses.
6, urban construction tax, education surcharge, local education surcharge, water conservancy fund