Taxes and fees for the disposal of bad assets, large land value added tax, etc. Require special attention
I. Real cases
A few days ago, a bad friend consulted a case in which a business was under the name of property, owed 2 + million to banks, had low registered prices, expected to pay 1 + million in taxes for a transfer, and bank arrears plus taxes totalling nearly 4 million。
When we look at the property situation, recent market release and deal data, and the cost of money, profit space, the largest bid can reach just over 4 million, amounting to a little bit more than the balance of the debtor, and almost no more after the arrears and taxes are paid。
This is mainly due to the large land value-added tax (lat) that enterprises pay for their properties under their name, and the higher value added resulting from low registered prices。
Ii. Taxes and charges involved in the disposal of undesirable assets
Different types of disposition of bad assets may involve different taxes and charges, which are more common and have a greater impact, mainly in the context of judicial auctions and in the form of debt-for-money payments。
1. Taxation during the judicial auction
Includes seller and buyer taxes。
From the point of view of creditors, consideration is primarily given to the seller's taxes and fees, and the net value of the proceeds of the auction after deduction of this tax is used to repay the loan。
From the point of view of the investor in the auction, attention should be paid to the agreement on taxes and fees in the auction notice. Many had previously required the buyers to bear the full costs of both the buyer and the buyer, and many were now on their own. It needs to be noted that even if they are borne individually, the bidder may be required to advance the seller's taxes。
2. Taxation in the process of debt servicing
Amortization can be divided into three stages, namely, receipt of an asset for a debt, holding of an asset for a period of time, and subsequent transfers after a debt for a period of time, each of which corresponds to different taxes and charges。
Acceptance of assets to pay off debt: equivalent to the purchase of assets, mainly in respect of tax dues, stamp duty. In addition, the difference between the creditor's principal outstanding and the asset against which the debt is owed is deducted before the enterprise's income tax; the tax charged by the original mortgagee may be advanced by the party to whom the deposit is made, but may not be deducted before the enterprise income tax。
Holding of assets: mainly related to property taxes, land use taxes, urban maintenance taxes, education fees and surcharges. In the case of property rental, value added tax and surcharges, stamp duty and enterprise income tax are also involved。
Re-transfers after debt set-off: the equivalent of the sale of assets, mainly involving value added tax, land value added tax, stamp duty, corporate income tax, etc。
Three, the taxes and fees involved in other disposal models, are a table that you can share. There are several issues related to the payment of taxes and fees for the disposal of undesirable assets. There are many problems associated with taxes and fees in the disposal of undesirable assets, and here three main examples are analysed: the issue of substantial land value added tax (vat), the issue of the priority of the tax owed by the person to be executed, and the priority of the income tax of the enterprise. 1. Large land value added tax
Among the multiple taxes and fees involved in the auctioning and transfer of immovable property, land value added tax (vat) is the most problematic, one being that other taxes are generally not so many as to be “substantial” in relative terms, and the other that in many cases (e. G. In an individual's home) it does not involve value added tax (vat) or small amounts, which do not attract attention。
However, land value added tax is involved when the subject matter is commercial, business property such as a writing building or business name, and when the purchase time is earlier or for various reasons the original registration price is lower, there is now a substantial increase in value added when the transfer takes place。
The land value added tax (lat) is a four-tier excess progressive tax rate ranging from 30 to 60 per cent, which may result in half of the housing money being used to pay the land value added tax。
2. Tax arrears of the person executed
The subject matter of the judicial auction is subject to outstanding taxes, such as property tax, urban land use tax, etc. Some tax authorities may not agree to produce a certificate of tax completion for the auctioned property on the ground that the person is under taxed, and the buyer cannot cross over the immovable property。
There are also two types of cases in which the enforcing party owes tax prior to the creation of the mortgage, in which case the tax is given priority and can be deducted from the auction, so that tax authorities generally cooperate with the auction, but care needs to be taken to deduct tax fees from the auction; and in which the right to security is given priority, in which case the tax authorities may not cooperate with the auction。
Corporate income tax may be involved in many aspects of corporate income tax, and it is important to note that the impact of corporate income tax is taken into account in the valuation calculations, but i personally understand that in the actual disposition there is no priority for corporate income tax. Business income tax is related to an enterprise's operating position in a fiscal year and is not simply the result of the disposal of an asset, and therefore i do not consider it reasonable to settle an obligation in the course of the disposal of a bad asset if the enterprise income tax is given priority。
