Real Estate Enterprises Income Tax Loopholes Blocked
The State Administration of Taxation recently issued the notice on the confirmation of the conditions for the development of products by real estate development enterprises. The circular pointed out that when the real estate development projects began to handle the housing delivery or began to actually put into use, they should be regarded as the completion of the development of the products and the settlement of the enterprises' taxes in time.
Tax experts believe that the circular is intended to plug real estate development enterprises to evade income tax loopholes.
The circular pointed out that the development and development of products developed by real estate development enterprises, whether the quality of the project is passed through the acceptance, or whether they have completed the completion (completion) filing procedures and the accounting final accounts, when the enterprises begin to handle the procedures for the development of products (including check-in formalities), or have already started to put into practice, they should be put into use for the development of products, which should be regarded as the finished product of the development.
Real estate development enterprises should timely settle the tax cost of developing products according to the regulations, and calculate the taxable income of the enterprises during the year.
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