According to the Circular of the State Administration of Issuing Rules and Procedures of Land Value-added Tax Liquidation Management, Guoshuifa No. 91, 2009, for taxpayers engaged in the Real Estate Business, when certain conditions are met, in accordance to tax laws and regulations, and the land value-added tax policies, shoul calculate the land VAT of the real estate development project, apply to related tax departments and submit relevant materials, finish the land VAT clearing procedures, and pay and settle the land VAT on the real estate projects. The liquidation of the land VAT not only involves detail description of the real estate projects, but also involves the prove process of related materials and verifications, and a rigorous examination by the tax related departments. Intermediates of good qualifications can provide a strong verification to the businesses.

Services types:
Issue “land value-added tax settlement appraisal report”
Contents of the verification report:

• Liquid incomes, project deduction amount, value added amount, value-added rate and tax calculations, etc.
• Important issues: the amount paid to obtain the land use rights and the land acquisition and relocation compensation costs, previous projects costs, infrastructure costs, public facilities costs, construction installation costs, indirect development costs, interest paid, collection costs and related transactions.
• Data clearing, logic review.
• To declare the objectivity, truth, and rationality review of real estate development projects by means of field inspection.

Liquidation Projects:
In the Land Value-added Tax liquidation projects

• Real estate development projects completed, sales completed.
• Accounts for the overall transfer of the not completed real estate development projects.
• Direct transfer of the land-use rights

Liquidations of the projects when determined by the tax authorities:

• The completed real estate development projects, if the proportion of the already transferred real estate construction project areas in total available for sale areas is 85% and above, or no more than 85% of the proportion, but the rest available for sale areas are already rented or used.
• Sales not completed in three years after sales (pre-sale) allowed
• Taxpayer applying for the cancellation of registration but not through the land value-added tax liquidation procedures
• Province (autonomous regions, municipalities, separately listed cities) and other situations determined by the tax related authorities.
• For circumstances Listed in the paragraph (3), land VAT should be liquidated before cancellation of registration.

Liquidation materials:

• Application form for the liquidation of land value-added tax and its annex form (refer to attachment for reference, local applied forms could be enacted according to specific conditions).
• Description of liquidation of real estate development projects, major content shall include the real estate development project proposal, land use, development and sales, related parties transactions, financing, tax payments and other basic information that tax authorities need to know about the case.
• final project completion report, certificate of land price when obtaining the land use rights, state-owned land use right transfer contract, bank loan interest settlement notice, project contract statements, real estate sales contract table, sales list, pre-sale license and other documents relating to the revenues, cost and expenses during transfer of real estate. The taxpayers should also provide copies of vouchers when the tax authorities need the accounting documents for the corresponding projects.
• The projects entrusted to the intermediate services for the liquidation verification, taxpayers should also submit to the authority the “land value-added tax settlement appraisal report” issued by the intermediate.