(1) Relevant policies

1, Rules and Regulations of the General Administration

Article 9 of the Detailed Rules for the Implementation of the Provisional Regulations on Land Value-added Tax stipulates that: In case a taxpayer develops or transfers real estate in batches after receiving the land use right, the amount deducted may be calculated and apportion according to the proportion of the land use right transferred to the total area, or according to the floor area, or in other ways confirmed by the tax authority.
State tax issue2009:91Article 21 of Document No. 2 stipulates that taxpayers who develop projects in stages or develop multiple projects at the same time, or build different types of real estate in the same project, shall share the common costs and expenses according to the beneficiaries and adopt reasonable distribution methods.

2Tax regulations of the Soviet Union2012:1The document and its official interpretation

Tax regulations of the Soviet Union2012:1Article 4 of Document No.4 (Note: Repealed) stipulates: Where different types of real estate are constructed in the same development project, the amount paid for the right to the use of the land and the compensation fees for land acquisition and demolition shall be apportioned according to the proportion of the building area of the type of real estate in the total building area of the project(Hereinafter referred to as "land cost"). However, for different types of real estate with relatively independent land area, the land cost should be calculated according to the proportion of the land area of this type of real estate to the total land area of the project.

1The official interpretation of the Provincial Bureau of Document No. 1 is clear: according to the provisions of the "Announcement", when apportionment of land cost should be divided into two steps: the first step is to calculate the apportionment of land cost according to the proportion of the actual area of the type of real estate to the total area of the project real estate. The second step is to determine the total land cost of different types of residual mixed real estate, and then allocate the land cost according to the proportion of the building area of a certain type of real estate in the total building area of the project.

3Tax regulations of the Soviet Union2012:8The document and its official interpretation

Tax regulations of the Soviet Union2015:8Article 2 stipulates: When the land cost is apportioned between different liquidation units or different types of property in the same liquidation unit, if it can be directly collected, it shall be directly included in the land cost of the liquidation unit or this type of property; If it cannot be directly collected, the apportionment may be calculated according to the floor area method or other reasonable methods recognized by the tax authorities.
8The official interpretation of Document No. 1 by Provincial Bureau is clear: This announcement makes clear the apportionment method of land cost between different liquidation units and different types of real estate. For those that can be directly collected, the method of direct collection shall be applied; for those that cannot be directly collected, the method of building area, the method of covering area, the method of coefficient of basic land price and other reasonable methods recognized by the tax authorities shall be used to calculate and apportion.

4,2017Annual provincial bureau caliber

Jiangsu Provincial Local Taxation Bureau2017A white paper issued in 2005 made it clear that, depending on the specific situation of a project, land costs can be apportion by using such methods as the floor area method, the floor area method, the selling price coefficient method and the benchmark land price coefficient method.①Land area method: that is, according to the real estate land area in the total land area proportion calculation allocation;②Building area method: that is, according to the proportion of real estate building area in the total area calculation and allocation;③Selling price coefficient method: that is, according to the proportion of real estate selling price to the total price calculation apportionment (the proportion of all types of real estate sales exceeds85%);④Base land price coefficient method: that is, according to the proportion of the base land price of land for different purposes calculated and apportioned by the land administration department;⑤Other reasonable methods recognized by the competent tax authorities.

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