Notice on Real Estate Companies Delivering Complete Housing Projects

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May 24 – The State Administration of Taxation recently issued a new notice regarding real estate enterprises delivering complete housing projects.

Guoshuihan [2010] No. 201, issued May 12, specifies the terms and conditions for real estate companies on completing housing projects. In accordance with the “Real Estate Corporate Income Tax Notice” (Guoshuifa [2006] No. 31) and the “Management Approach for Real Estate Enterprises CIT” (Guoshuifa [2009] No. 31), the new notice stipulates that housing projects should be regarded as complete once real estate enterprises start delivering and processing housing product procedures, or the housing product has been put into actual use. This is regardless of whether the quality of the housing project has been approved by relevant authorities or whether the real estate enterprises have completed the final accounting procedures.

Furthermore, it emphasizes that real estate enterprises should calculate tax costs in a timely manner according to the new notice, as well as its yearly taxable income.