Research on Legal Issues of Land Value-added Tax under Equity Transfer

The behavior of transferring land use right in the form of equity transfer is to realize the substantive control of the target land use right in the form of equity transfer. Using this way to replace the ordinary land use right transfer can reduce the tax cost which occupies a large proportion in the whole transaction. This method conforms to the provisions of China's company law, and has the advantages of simple procedures, low taxes and fees, concealment and so on. It has become a common practice in the real estate industry. There is no clear provision in the national law on whether this behavior should be levied land value-added tax, the policy calibre of the tax department is different, and the judicial precedent has not formed a unified standard.