Announcement No. 1 of 2022 from the Taizhou Municipal Taxation Bureau of the State Administration of Taxation Announcement of the Taizhou Municipal Taxation Bureau of the State Administration of Taxation on issues related to the taxable gross profit margin of real estate enterprises selling unfinished development products

Announcement of the Taizhou Municipal Taxation Bureau of the State Administration of Taxation on issues related to tax calculation and gross profit margin of real estate enterprises selling unfinished development products

Announcement No. 1 of 2022 of the Taizhou Municipal Taxation Bureau of the State Administration of Taxation

The full text is valid

2022.7.7

According to the Enterprise Income Tax Law of the People's Republic of China and its implementation regulations, the State Administration of Taxation issued the "Real Estate Development"According to the relevant provisions of the Notice on the Measures for the Treatment of Enterprise Income Tax on Business Development (Guo Shui Fa [2009] No. 31) and the Announcement of the State Administration of Taxation, the Zhejiang Provincial Taxation Bureau on Issues Concerning the Taxable Gross Margin of Real Estate Enterprises Selling Uncompleted Products (Announcement No. 10, 2018, of the Zhejiang Provincial Taxation Bureau of the State Administration of Taxation), the income from the sales of unfinished development products by real estate development and operating enterprises should first be calculated quarterly (or monthly) based on the estimated taxable gross profit rate..The taxable gross profit margin of the city's real estate development and operation enterprises for sales of unfinished development products is now announced as follows:

1. The taxation gross profit margin of real estate development and operation enterprises for sales of unfinished development products shall be in accordance with the following provisions.Determined:

(1) If the development projects are located in Jiaojiang District, Huangyan District, Luqiao District and Taizhou Bay New Area of Taizhou City, the taxable gross profit margin is 12%.

(2) The development projects are located in counties (cities)The taxable gross profit margin is 8%.

(3) The taxable gross profit margin is 3% for affordable housing, price-restricted housing and dilapidated housing.

Second, this announcement will be implemented from the date of issuance.

Real estate development enterprises’ undeclared real estate pre-sale income for the tax period after April 1, 2022 (inclusive) shall be calculated based on the tax gross profit margin specified in this announcement.

3.

This is hereby announced.

Taizhou Municipal Taxation Bureau of the State Administration of Taxation

July 7, 2022