Announcement No. 2 of 2022 from the Hunan Provincial Taxation Bureau of the State Administration of Taxation Announcement No. 2 of the State Administration of Taxation and the Hunan Provincial Taxation Bureau on matters related to the difficulty reduction and exemption of property tax and urban land use tax

Announcement of the Hunan Provincial Taxation Bureau of the State Administration of Taxation on matters related to the difficult reduction and exemption of property tax and urban land use tax

Announcement No. 2 of 2022 of the Hunan Provincial Taxation Bureau of the State Administration of Taxation

The full text is valid

2022.7.6

According to the and (No. 1 of 2014, revised No. 31 of 2018), the relevant matters regarding the difficulty reduction and exemption of property tax and urban land use tax in our province (hereinafter referred to as "difficulty tax reduction and exemption") are now announced as follows:

1. Taxpayers who meet one of the following conditions can apply for hardship tax reduction and exemption

(1) Heavy losses caused by severe natural disasters such as wind, fire, water, earthquake, or other force majeure factors.

"Significant losses" refers to the amount of direct asset losses caused by the above circumstances. After deducting insurance claims, personal compensation, financial subsidies and other compensation payments, the actual loss amount exceeds 20% (inclusive) of the total assets at the end of the previous month (quarter) where the heavy losses were suffered.

(2) Due to sudden public health, public security and other incidents, taxpayers' normal business activities are significantly affected, and it is really difficult to pay property tax and urban land use tax.

"Emergency public health, public security and other incidents" shall be subject to announcements or notices issued by relevant government departments.

"It is really difficult to pay real estate tax and urban land use tax" refers to the application for reductionAt the end of the month (quarter) of the exemption period, the taxpayer's monetary funds, after deducting employee wages and social insurance premiums, are insufficient to pay property taxes and urban land use taxes.

(3) Due to special reasons such as urban and rural development planning adjustments, national construction needs, etc., the real estate and land cannot be used normally.

(4) The real estate and land have ceased to be used between the time when the people's court ruled to accept the bankruptcy application and the end of the bankruptcy procedure.

(5) Comprehensive suspension of production and business (excluding seasonal production and business closures, except those ordered to cease production and business in accordance with the law) for more than six months, and the annual loss exceeds 50% (inclusive) of the total revenue of the year.

(6) Engaging in industries that are not restricted or phased out in the , due to policy or market influence, serious losses in production and operations.

"Serious losses" refers to annual losses.The amount of losses exceeds 10% (inclusive) of its total revenue for the year; or it has suffered losses for three consecutive years, and the accumulated losses accounted for more than 30% (inclusive) of the total assets at the end of the year.

(7) As identified by the Provincial People's Government and its relevant departments, and to implement major projects and projects deployed by national and provincial decisions, Hunan Province's strategic emerging industry enterprises and taxpayers that undertake major social and public functions have temporary difficulties in operating and suffer losses.

The total assets mentioned aboveThe amount, total income, and loss amount shall be based on the financial statements prepared by the taxpayer in accordance with the unified accounting system of the country.

The approved amount of tax reduction and exemption for hardship shall not exceed the amount of losses and losses actually incurred in the tax year after verification by the tax authorities.

2. Taxpayers shall not apply for tax reduction or exemption for hardship if one of the following circumstances exists

(1) Engage in restricted categories and elimination in the Industries.

(2) Other circumstances under which the Ministry of Finance and the State Administration of Taxation stipulate that tax exemptions and exemptions for hardship are not allowed.

3. Approval authority for tax exemptions and exemptions for hardship

TaxpayersApplications for annual property tax reductions and exemptions and urban land use tax amounts of less than 500,000 yuan (inclusive) shall be approved by the county (city) district taxation bureau; applications for annual tax reductions and exemptions of more than 500,000 yuan shall, in principle, be approved by the city and state taxation bureaus, butMunicipal and state bureaus may further delegate approval authority based on actual circumstances. If taxpayers in the free trade pilot zone have difficulty applying for property tax or urban land use tax exemption, the tax authority's approval authority will be delegated to the county (city) district tax bureau.

4. Application materials

Taxpayers applying for hardship tax reduction or exemption should submit the following information to the competent tax authorities:

(1) ;

(2) Difficulty reduction and exemption application report, listing the basic situation of the taxpayer, the reasons for applying for tax reduction or exemption, basis, scope, period, quantity, amount, etc.;

(3) Relevant materials proving that the taxpayer meets the hardship situation.

Five. Processing Procedures

(1) Application

If taxpayers comply with Items (1), (2), (3) and (4) of Article 1 of this Announcement, they may apply in difficult circumstances.After the incident occurs, an application must be submitted to the competent tax authority before the end of March of the following year.

For taxpayers that comply with Items (5), (6), and (7) of Article 1 of this Announcement, taxpayers shall submit an application for tax reduction or exemption to the competent tax authority within 6 months after the end of the year in which the difficult tax reduction or exemption belongs.

Difficulty tax reduction or exemption shall be applied to the competent tax authority where the property and land are located by taxpayers who implement independent accounting and independently bear civil liability. The head office pays taxes.If a person applies to multiple competent tax authorities in the province at the same time, he should first submit the summary of difficult tax reduction and exemption materials to the Hunan Provincial Taxation Bureau (Property and Behavior Tax Division) of the State Administration of Taxation.

(2) Acceptance

After receiving the taxpayer's application for tax reduction or exemption, the competent tax authority will immediately review the application materials one by one and accept them if the information is complete; if the information is incomplete, the taxpayer will be notified at one time of the information that needs to be supplemented or the reasons for rejection.

(3) Approval

For qualified tax exemption applications, if approved by the county tax bureau, an approval decision will be made within 20 working days from the date of acceptance; if approved by the municipal tax bureau, an approval decision will be made within 30 working days from the date of acceptance.An approval decision will be made within three working days. If the taxpayer has supplementary information, the time required to supplement the information will not be counted within the prescribed period.

The taxpayer should provide true, complete and accurate tax exemption application information and bear the corresponding liabilityResponsibility. During the follow-up management process, if the tax authorities discover that taxpayers have defrauded tax exemptions and exemptions, they should recover the tax exemptions and exemptions they have enjoyed and handle them in accordance with the relevant provisions of the Tax Collection and Management Law.

VI. Others

This announcement shall be effective from the date of promulgation and will be valid for 5 years. (No. 6, 2018) shall be repealed at the same time. Previously occurredUnhandled matters will be implemented in accordance with this announcement, and handled matters will not be adjusted.

Hereby announces.

Hunan Provincial Taxation Bureau of the State Administration of Taxation

July 6, 2022

Interpretation of

Release time: 2022-07-1416:10Source: Hunan Provincial Taxation Bureau of the State Administration of Taxation

In order to further standardize the management of difficult tax reduction and exemption of urban land use tax and real estate tax, the Hunan Provincial Taxation Bureau of the State Administration of Taxation has formulated (hereinafter referred to as the ). The relevant matters are interpreted as follows:

1. The background of the

In order to implement the decisions and arrangements of the central government and the provincial party committee and the provincial government, ensure that relevant taxpayers can enjoy tax benefits in a timely and accurate mannerPolicy, in accordance with the "Provisional Regulations of the People's Republic of China on Real Estate Tax", "Provisional Regulations of the People's Republic of China on Urban Land Use Tax", "Regulations on the Implementation of Real Estate Tax in Hunan Province" and "Announcement of the State Administration of Taxation on Matters Concerning the Decentralization of the Approval Authority for Difficulty Reduction and Exemption of Urban Land Use Tax" (2014 No. 1No., revised No. 31 of 2018), our bureau has formulated the .

II. The main contents of the

(1) Regarding difficult situations

The clarifies seven categories of circumstances under which hardship tax exemptions and exemptions can be applied, including:1. Heavy losses caused by severe natural disasters such as wind, fire, water, earthquake or other force majeure factors. 2. Due to sudden public health, public security and other incidents, taxpayers' normal business activities are significantly affected, and it is really difficult to pay property tax and urban land use tax. 3. Due to urbanThe real estate and land cannot be used normally due to special reasons such as adjustments to the township development plan and national construction needs. 4. The real estate and land have ceased to be used during the period from the People's Court ruling to accept the bankruptcy application to the end of the bankruptcy procedure. 5. A complete suspension of production and business for more than half a year, and the annual loss exceeds the current year's income.More than 50% (inclusive) of the total amount. 6. Engage in industries that are not restricted or phased out in the "National Industrial Structural Adjustment Guidance Catalog", and suffer serious losses in production and operations due to policy or market influence. 7. As identified by the Provincial People's Government and its relevant departments, implement major projects deployed by national and provincial decisionsChenghe Project, Hunan Province's strategic emerging industry enterprises and taxpayers that undertake larger social and public functions have temporary difficulties in operating and incur losses.

It is clarified that taxpayers who have any of the following circumstances are not allowed to apply for difficulty tax reduction or exemption, including: 1. Engage in . 2. Other situations that are not eligible for hardship tax reductions and exemptions as stipulated by the Ministry of Finance and the State Administration of Taxation.

(2) Regarding application materials

Clearly, taxpayers applying for hardship tax reductions and exemptions,The following information needs to be provided: 1. . 2. Difficulty Reduction and Relief Application Report. 3. Relevant information proving that the taxpayer meets the hardship situation. Taxpayers are no longer required to resubmit relevant information that has been obtained by the tax authorities.

(3) AboutApproval authority

Clearly, if taxpayers apply for annual tax reduction or exemption of property tax and urban land use tax of less than 500,000 yuan (inclusive), they shall be approved by the county (city) district taxation bureau; if the annual tax reduction or exemption amount of each application is more than 500,000 yuan, in principle, the city and state tax bureau shallHowever, the municipal and state bureaus may further delegate their approval authority according to the actual situation. If taxpayers in the free trade pilot zone have difficulty applying for property tax or urban land use tax reduction or exemption, the tax authority’s approval authority will be delegated to the county (city) district tax bureau.

(4) About the application time limit

In order to allow relevant taxpayers to enjoy tax reduction and exemption benefits in a timely manner, the clarifies the application time for taxpayers according to different difficult situations. For difficult situations that comply with Article 1 (1), (2), (3), and (4) of the , taxpayers will be eligible for tax exemptions when difficulties occur.Applications can be made before the end of March of the following year.

For difficult circumstances that meet Items (5), (6), and (7) of Article 1 of the , taxpayers should apply within 6 months after the end of the year to which the difficult tax reduction or exemption belongs.

(5) Regarding verificationTime limit

In accordance with the tax service management regulations, the clarifies the time limit for approval. If approved by the county (city) district tax bureau, the approval decision will be made within 20 working days from the date of acceptance; if approved by the city or state tax bureau, the approval decision will be made within 30 working days from the date of acceptance.The decision is accurate. The time required for taxpayers to supplement information is not counted within the prescribed period.

3. Implementation time

will be implemented from the date of announcement. Matters that have not been handled before will be implemented in accordance with this announcement, and matters that have been handled will not be adjusted.