In order to promote the sustainable and healthy development of the real estate industry in our province, in accordance with Article 35 of the Law of the People's Republic of China on the Administration of Tax Collection and Article 47 of its detailed rules for implementation, the Notice of the State Administration of Taxation on Issues Related to the Liquidation Management of Land Value Added Tax of Real Estate Development Enterprises (Guo Shui Fa [2006] No. 187) and the Code for Valuation of Bill of Quantities of Construction Projects (GB50500-2013), Code for Calculation of Quantities of Building Construction and Decoration Engineering (GB50854-2013), Code for Calculation of Quantities of Structures Engineering (GB50860-2013), Code for Calculation of Quantities of General Installation Engineering (GB50856-2013), Code for Calculation of Quantities of Municipal Engineering (GB50857-2013), Code for Calculation of Quantities of Landscaping Engineering (GB50858-2013) As well as the relevant supporting regulations of our province, the State Administration of Taxation, Fujian Provincial Taxation Bureau and Fujian Provincial Department of Housing and Urban Rural Development jointly prepared the "Tax Cost Standard for Construction Cost of Real Estate Development Projects in Fujian Province (2009-2018)" (excluding Xiamen, hereinafter referred to as the "Tax Cost Standard for Construction Cost"), which is hereby released and announced as follows:

1、 The Standard for Taxable Cost of Project Cost is applicable to the collection and management of land value-added tax by tax authorities on real estate development enterprises.

2、 When the tax authorities verify the cost of real estate development projects in accordance with the Standard for Taxable Cost of Project Cost, they will calculate the cost based on the tax cost standard of project cost in the year corresponding to the commencement and completion of the construction project; If the construction period spans years, it shall be calculated according to the quantities of each year or the quantities corresponding to the weight of the project progress settlement price. If the above methods are not accurately distinguished, it shall be calculated according to the average value of the standards across years. If the year of commencement and completion is not covered in the published Taxable Cost Standard for Project Cost, it shall be calculated by reference to the standard value of the nearest year.

3、 If the amount of project cost cost deduction declared by the real estate development enterprise for land value-added tax settlement is higher than the amount calculated in accordance with the Standard for Taxable Cost of Project Cost, it shall provide relevant evidence, which shall be deducted according to the facts after being recognized by the tax authority. The above relevant evidences include but are not limited to construction project planning and design (construction) drawings, outdoor general layout, as built drawings, bill of quantities, list of decoration materials, list of greening seedlings, survey report of earthwork, project settlement statement, building area mapping report, etc. If there is any objection to the result of the tax authority's determination, the tax authority may also entrust the project cost appraisal, and take the appraisal opinion as the basis for judging whether it is acceptable.

This announcement shall come into force as of February 1, 2020.

It is hereby announced.

　　 State Administration of Taxation Fujian Provincial Taxation Bureau Fujian Provincial Department of Housing and Urban Rural Development

　　 December 17, 2019