1. Are real estate businesses that have income from land subleasing activities subject to corporate income tax?

According to the provisions of Circular 78/2014/TT-BTC, subjects subject to corporate income tax from real estate transfer include businesses of all economic sectors and all industries that have income from transfer activities. real estate transfer. In particular, real estate businesses with income from land sublease activities are also determined to be taxable subjects.

Income from real estate transfer activities includes many types of income, such as:

- Income from transfer of land use rights and land lease rights.

- Income from land sublease activities of real estate businesses, including project transfers related to land use rights and land lease rights.

- Income from transfer of houses, construction works, and assets attached to land.

- Income from transfer of ownership or use rights of housing.

Note, income from land subleasing of real estate businesses does not include cases where the business only leases houses, infrastructure, and architectural works on land.

Enterprises in this category will be responsible for paying corporate income tax according to the provisions of tax law. This is to ensure fairness and uniformity in contributions to the state budget from real estate transfer activities. Subjects subject to corporate income tax from real estate transfer, according to the provisions of Circular 78/2014/TT-BTC, include businesses of all economic sectors and all industries with income from operations. real estate transfer, as well as real estate businesses that have income from land subleasing activities.

Income from real estate transfer includes many types of income such as transfer of land use rights, land lease rights, transfer of houses, construction works and assets attached to land. In particular, income from land sublease activities of real estate businesses is also included in taxable objects.

2. Income subject to corporate income tax for real estate businesses with income from land sublease activities

Taxable income from land subleasing activities as prescribed in Article 17 of Circular 78/2014/TT-BTC is determined through the following steps:

Tax bases:

Taxable income (=) Taxable income (-) Losses from real estate transfer activities of previous years (if any).

Income taxes:

Revenue obtained from real estate transfer activities minus the cost price of real estate and deductible expenses related to real estate transfer activities is an important factor in determining taxable income. of real estate businesses.

- Revenue from real estate transfer activities:

Revenue is determined according to the actual price of real estate transfer according to real estate transfer and sale contracts, in accordance with the provisions of law. This includes surcharges and additional fees if any.

- Cost price of real estate:

Cost price is the price the business paid to acquire that real estate. Including the purchase price and related costs such as transfer taxes, fees, management costs and other costs related to the transfer of real estate.

- Expenses related to real estate transfer activities:

Includes costs incurred during the real estate transfer process such as legal consulting costs, advertising costs, and other costs.

- Losses from real estate transfer activities:

Is the total loss earned from real estate transfer activities in previous years (if any).

The above formula helps determine the corporate income tax rate for real estate businesses with income from land sublease activities, while ensuring fairness and transparency in the calculation process. This process includes specific steps, such as determining revenue, cost of real estate, related costs, and losses from previous years (if any).

This helps create a fair and transparent corporate income tax basis, helping tax authorities and businesses clearly understand the factors that determine the tax rate to be paid. This regulation also sets out the principle of consensus and accuracy in determining the cost price and costs related to real estate transfer activities.

3. Corporate income tax rate for real estate businesses with income from land sublease activities

According to the provisions of Clause 2, Article 17 of Circular 78/2014/TT-BTC (amended by Article 9 of Circular 96/2015/TT-BTC), regulations on tax rates and how to determine income tax amount Enterprises from real estate transfer activities are as follows:

- Corporate income tax rate: Corporate income tax rate for real estate transfer activities is 22% (from January 1, 2016, it is 20%). This applies to corporate income arising from real estate transfers.

- Determination of corporate income tax amount:

+ The corporate income tax amount in the tax period for real estate transfer activities is calculated by multiplying taxable income from real estate transfer activities by the tax rate of 22%.

The amount of corporate income tax in the tax period for real estate transfer activities is equal to taxable income from real estate transfer activities multiplied by (x) the tax rate of 22%.

+ For income from real estate transfer, the corporate income tax amount must be determined separately and corporate income tax incentives are not applied.

- Tax declaration and payment records: Tax declaration and payment records, and income tax payment documents from real estate transfer arising in the locality where the transferred real estate is located are the basis for carrying out procedures. Tax finalization at the location of the enterprise's headquarters.

Thus, currently, real estate businesses with income from land sublease activities will have to pay corporate income tax at the tax rate of 20%. According to the provisions of Circular 78/2014/TT-BTC (amended by Circular 96/2015/TT-BTC), real estate businesses with income from land subleasing activities will be subject to income tax. Enter the business. This tax rate is 20% (from January 1, 2016, previously 22%) and applies to income from real estate transfer activities.

The way to calculate corporate income tax is to multiply taxable income from real estate transfer activities by the tax rate of 20%. For income from real estate transfer, the corporate income tax amount must be determined separately and corporate income tax incentives are not applied. Tax declaration, tax payment and income tax payment documents from real estate transfer will be processed in the locality where the transferred real estate is located, while tax finalization procedures will be carried out at the place of headquarters. main of the business.