First, the policy basis of project liquidation

(1) Provisions of the General Administration

State tax issue2006:187"The land value-added tax shall be liquidated in real estate development projects approved by relevant state departments, and in phased development projects, in phased projects," the document states.

from187As can be seen from the provisions of the document, the land value-added tax must be settled according to the project, not affected by the land range and accounting.187It is also clear that installment projects of the same project are equivalent to separate projects, but187No. 1 document does not make clear whether the installment project must be the installment project specified by the relevant departments of the state, and whether the taxpayer's own installment project is regarded as an independent project, which has been controversial in practice. In the author's opinion, the installment project must be a definite installment project of the relevant departments of the state, otherwise it is difficult to grasp.187The document does not specify which department is the relevant state department.

(2) Provisions of Jiangsu Province

1Tax regulations of the Soviet Union2015:8"The land value-added tax shall be liquidated by the items approved and filed by the relevant departments of the state. For projects approved for phased development by the state department concerned, the phased project shall be taken as the unit for liquidation. For development projects with a long development period and which are phased by the taxpayer himself, the taxpayer may designate the phased project as a liquidation unit and report it to the competent tax authorities for the record."

8Document No187Document No. 1 is basically the same.8Document No. 2 further defines that the phased project is the phased project approved by the relevant state departments, but at the same time retains the taxpayer's right to stage by himself. The author believes that this is inappropriate for the following reasons: First, it is difficult to quantify under what circumstances can be defined as "long development cycle", and no matter how it is quantified, it is unfair; Second, the taxpayer has too much authority to installment, if the size of the installment, the development products and public facilities covered by each installment are decided by the taxpayer, it will have the possibility to adjust the tax burden by itself; Third, in most cases, taxpayers can not take the initiative to record, this provision for the tax authorities in vain, lost the initiative; Fourth, when the taxpayer feels that the installment liquidation is advantageous, whether it can be recorded at any time? It is difficult to grasp the effective time limit of filing in practice; Fifth, there are disputes in practice over whether the tax authorities have the right to disapprove the archival filing if they do not meet the requirements for archival filing.

It should be noted that in most cases, the installment liquidation of the same item may increase the tax burden, but it may also reduce the tax burden under certain circumstances. For example, in some cases, the installment liquidation of ordinary residences is exempt from tax while the consolidation liquidation is not.

8The document still does not specify which department is the national authority concerned.

2Tax regulations of the Soviet Union2015:8"For multiple approved projects on the same parcel of land, where the taxpayer develops the project as a whole, the multiple projects on the parcel of land can be regarded as a liquidation unit and reported to the competent tax authorities for the record. (Note: Since2017years1month1Annulled as of today)
If the installment liquidation is regarded as the separation of projects, then the above provision is the consolidation of projects. The author believes that it is extremely inappropriate for taxpayers to decide the merger and division of projects by themselves, for the same reason as above. The reason for abolishing the above provisions should be that there are too many contradictions in practice and cannot be solved.

3The former Jiangsu Provincial Local Taxation Bureau made it clear in the form of a white paper: "Relevant state departments in principle refer to the National Development and Reform Commission. However, in special cases where the income and cost are difficult to determine, such as when the same parcel of land is divided into multiple projects due to the limit of authority approved by the National Development and Reform Commission, the liquidation unit can be determined according to the construction project planning permit issued by the planning or construction department. "

The examination and approval department of real estate development projects is the National Development and Reform Commission, so the project and phase project shall be determined by the project approval document of the National Development and Reform Commission. Installments specified in the same document shall also be liquidated in installments. The author thinks that the special situation that income and cost are difficult to determine actually does not exist. It is reasonable in operation to carry out the merger and liquidation of several projects artificially separated and divided because of insufficient approval authority, but the author believes that the basis for the merger and liquidation should still be issued by the National Development and Reform Commission, and the project planning permit cannot prove the "approval authority" of the National Development and Reform Commission.

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