How to pay taxes on the sale of factory buildings: Analysis of hot topics on the Internet in the past 10 days
Recently, factory sales and related tax issues have become the focus of corporate and individual investors. With the adjustment of economic structure and industrial upgrading, factory transactions are frequent, but taxation rules are complex, involving multiple tax types such as value-added tax, land value-added tax, and corporate income tax. This article will combine the hot content on the Internet in the past 10 days to provide a detailed analysis of the tax process and precautions for the sale of factory buildings.
1. Main taxes involved in the sale of factory buildings
According to current tax laws, the sale of factory buildings mainly involves the following taxes:
| tax type | tax rate | Tax calculation basis | Remarks |
|---|---|---|---|
| value added tax | 9% or 5% | sales revenue | 9% is applicable to general taxpayers and 5% is applicable to small-scale taxpayers |
| land value added tax | 30%-60% | Value added | Progressive tax calculation based on value added |
| corporate income tax | 25% | Profit amount | Companies selling factories need to pay |
| stamp duty | 0.05%-0.1% | Contract amount | Both the buyer and seller need to pay |
2. Hot issues regarding taxation on the sale of factory buildings
1.How to choose between simple VAT calculation and general VAT calculation?
According to recent answers from the tax department, general taxpayers can choose simplified tax calculation (5% tax rate) when selling factories acquired before April 30, 2016; factories acquired after May 1, 2016 are subject to general tax calculation (9% tax rate). Small-scale taxpayers are subject to a uniform collection rate of 5%.
2.How are the deductions for land value-added tax calculated?
Deductible items for land value-added tax include land price, construction and installation costs, development expenses, etc. Recently, tax authorities in many places have emphasized that legal certificates must be provided before deductions can be made, otherwise you may face tax adjustments.
3.What are the tax incentives for selling factory buildings?
The latest policies in 2023 show that small and micro enterprises selling factories can be exempted from value-added tax if the monthly sales do not exceed 100,000 yuan; some areas provide land value-added tax exemptions for industrial upgrading projects.
3. Typical Case Analysis of Factory Sales Tax
| Case | Transaction amount | Main taxes | tax amount |
|---|---|---|---|
| Company A sells old factory building | 5 million yuan | Value-added tax, land value-added tax | VAT 250,000, land value-added tax 620,000 |
| B individual sells factory building | 3 million yuan | Personal income tax, value-added tax | Personal tax is 600,000, value-added tax is 150,000 |
4. Things to note when paying taxes on the sale of factory buildings
1.Handle property transfer in a timely manner: After the factory is sold, the property rights change must be completed within 30 days, otherwise it may affect the tax return.
2.Keep complete credentials: Original documents such as land price and construction costs must be kept for at least 10 years.
3.Pay attention to local policies: There are differences in the tax collection and administration of factory transactions in different regions, so you need to consult the local tax authorities.
5. Summary
There are many types of taxes involved in the sale of factory buildings and the calculations are complicated. Taxpayers need to choose the appropriate tax calculation method according to their own circumstances. Tax audits have been intensified recently. It is recommended to make tax planning before transactions and consult professional institutions when necessary. Compliance with taxation can not only reduce tax risks, but also provide protection for subsequent operations.
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