Is it necessary to pay tax for the demolition and resettlement houses to issue zero VAT rate?

No, you only need to pay individual tax and deed tax after three years.

Resettlement of immigrants is an act of transferring real estate property rights to resettlement households entrusted by the township government, which belongs to the business of "selling real estate" stipulated in the Provisional Regulations on Value-added Tax in People's Republic of China (PRC). Real estate development enterprises should pay value-added tax according to relevant tax policies.

Demolition compensation and resettlement funds are paid directly to the relocated households by the government, and the relocated households purchase resettlement houses from real estate enterprises with compensation. According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Pushing Forward the Pilot Project of Changing Business Tax to VAT (Caishui [2065438+06] No.36), it is clear that the income obtained by resettlement households is exempt from VAT, but real estate development enterprises should pay VAT according to the contract price.