If the property is handed over to the government free of charge, is it necessary to pay business tax?

It is basically not levied in Shanghai, because in Shanghai, for example, when a developer builds a school, the land certificate is separate from the beginning and handed over to the government as a supporting system. According to the policy, there is no need to pay business tax.

Many places are a bit complicated. Many real estate licenses are in the name of developers, and finally they have to be transferred to the government, and the tax bureau has to collect business tax.

If you want to pay business tax, you should do the following:

Guo Shui Fa [2006] 187 No.

(III) Buildings, clubs, parking lots (garages), property management places, substations, heating stations, water plants, cultural and sports venues, schools, kindergartens, nurseries, hospitals, posts and telecommunications and other public facilities developed and built by real estate development enterprises for liquidation projects shall be handled according to the following principles:

1. After completion, if the property right belongs to all owners, the cost can be deducted;

2 after the completion of the free transfer to the government, institutions for non-profit social undertakings, its costs and expenses can be deducted;

3. After the paid transfer is completed, the income shall be calculated and the costs and expenses shall be allowed to be deducted.

The basis for saying that business tax should be levied is this:

According to the Provisional Regulations of the People's Republic of China on Business Tax

Article 5 A taxpayer shall be deemed to be engaged in taxable activities under any of the following circumstances:

(a) the unit or individual gives the real estate or land use right to other units or individuals free of charge;

Therefore, the current legal system in China is really imperfect! Look at this problem, different places, different operations. I can't give you a correct answer.