Third, the legal analysis of secondary liquidation

The author believes that, no matter from the perspective of legality or rationality, secondary liquidation is necessary, mainly for the following reasons:

First, the land value-added tax policy stipulates that the real estate development should be liquidated according to the project. For the re-sale after liquidation, only the secondary liquidation can meet the requirements of the project liquidation.

Second, taxpayers may still incur costs after the liquidation. The land value-added tax policy and the Law of Collection have never required that legal and compliant costs are not allowed to be deducted before tax. If these costs are allowed to be deducted, then only secondary liquidation can be implemented.

Third, under the type liquidation (the rule of thirds) model, there should be only one applicable tax rate for the same type and allow the same type of development products to break even. If secondary liquidation is not allowed, in fact, there will be two or more applicable tax rates for the same type, and sales before liquidation and sales after liquidation cannot set off profits and losses, and even sales at different points after liquidation cannot set off profits and losses, greatly increasing the burden of taxpayers.

To sum up, the author suggests that the comprehensive implementation of secondary liquidation, reduce the taxpayer's unreasonable burden.

Iv. Improvement of tax calculation method for resales after liquidation

For resale after liquidation, Jiangsu has undergone an improvement from a tax rate to a monthly tax rate. Recently, the author went to a city in southern Jiangsu and learned from the competent department of land value-added tax that the resale after liquidation has been using the rolling calculation method.

Under the episode-based or monthly tax system, different tax rates may apply to the previous assessment and the subsequent assessment, and if the value-added amount is negative in a particular assessment, it is impossible to recover it.

In the rolling tax calculation mode, the tax is calculated according to the actual value-added amount and value-added rate in the first tax calculation; in the second tax calculation, the data of the second time and the data of the first time are added on a rolling basis to calculate the total tax payable, and then the tax paid in the first time is deducted according to the balance of the tax. If the tax is overtaxed, it can be offset in the next tax calculation. The third time the tax is added, and so on. You can apply for a tax refund if you have overpaid the tax at the last time. The effect of the rolling tax is to consolidate the entire liquidation and resale tax.

The rolling calculation method can ensure that only one tax rate is applied to the re-sale of a certain type of real estate after liquidation, and the profits and losses in the sales process can be offset, which can greatly improve the rationality of tax calculation and reduce the unreasonable burden of taxpayers. It is said that this method has been recognized by the provincial tax bureau, the author suggests that it be popularized and applied as soon as possible.

At present, the difficulty in popularizing the rolling calculation method lies in: first, when does it start to apply? Second, can the unsold items be applied retroactively? The third is whether the tax overpaid before can be refunded, etc. The author believes that according to the principle of benefit to taxpayers, these problems can be solved, should not become an obstacle to promotion.

V. Can we cancel type liquidation?

In fact, there is a contradiction between type liquidation and item liquidation. There should not be multiple applicable tax rates and the situation that profit and loss cannot be offset in the same item. The author suggests abolishing the three-point method and replacing it with the one-point method, that is, calculating the value-added tax, the value-added tax rate and the land value-added tax payable according to the whole project without distinguishing the types of real estate. Under the one-point method, for ordinary standard residences, if the taxpayer asks for tax exemption, the two-point method (tax exemption and non-tax exemption) can be applied; if the taxpayer gives up the tax exemption or does not meet the conditions of tax exemption, the one-point method is still applicable.

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