Group 1 - The article discusses new changes in the prepayment tax declaration for corporate income tax, effective from October 1, 2025, as announced by the State Taxation Administration of China [3]. - A new line item, "Sales of Unfinished Products Income," has been added for real estate development companies to report their pre-sale income from unfinished products [3]. - The calculation of prepayment tax will now include the estimated gross profit based on a specified tax rate, deducting land value-added tax and other applicable taxes [3]. Group 2 - An example is provided where a real estate company, A, in Guangzhou, reports pre-sale income of 80 million yuan in the third quarter of 2025, with a land value-added tax of 1.6 million yuan [3]. - The taxable income for Company A is calculated as follows: 80 million yuan multiplied by a 15% gross profit rate, minus the land value-added tax, resulting in a taxable income of 10.4 million yuan [3]. - The total prepayment tax calculation for Company A includes the reported income from unfinished products, which is 80 million yuan [3].

Core Viewpoint - The article discusses the tax treatment of corporate income tax for completed development products and outlines new changes in prepayment tax declaration requirements for real estate development companies starting from October 1, 2025 [2]. Summary by Sections Tax Treatment of Completed Development Products - Companies must promptly settle their taxable costs and calculate the actual gross profit from prior sales, with the difference between actual and estimated gross profit included in the taxable income for the year [2]. Changes in Prepayment Tax Declaration - The State Taxation Administration announced new requirements for prepayment tax declaration, specifically adding a line for "Revenue from Sales of Unfinished Products" for real estate developers, effective from October 1, 2025 [2]. - The new line 19.1 requires reporting the cumulative amount of pre-sale income from unfinished development products, clarifying the reporting requirements for real estate companies [2]. Example of Tax Calculation - An example is provided where a real estate company, A, in Guangzhou, reports pre-sale income of 80 million yuan in the third quarter of 2025, with a land value-added tax of 1.6 million yuan. The taxable income is calculated using a 15% gross profit rate, resulting in a taxable income of 10.4 million yuan after deductions [2].