What are Real Estate Taxes?
Real estate tax is a comprehensive concept, which refers to all taxes that are directly related to the process of real estate economic movement. In China, it includes real estate value-added tax, corporate income tax, personal income tax, real estate tax, urban land use tax, urban real estate tax, stamp tax, land value added tax, investment direction adjustment tax, deed tax, cultivated land occupation tax, etc.
Real estate tax
- China's real estate industry is taxed directly on real estate
- On September 20, 2012, Cong Ming, the inspector of the Department of Policies and Regulations of the State Administration of Taxation, revealed that the real estate tax will be expanded in the next phase and the real estate tax system will be gradually established. Real estate taxes will eventually be implemented nationwide. [8]
- Real estate stamp duty taxation vouchers mainly include: vouchers with the nature of a real estate sales contract; real estate property right transfer documents; real estate rights permission certificates; real estate business account books; other vouchers determined by the Ministry of Finance for taxation.
- The real estate stamp duty includes:
- (1) The taxpayer. The taxpayers of real estate stamp tax are the units and individuals who file and receive taxable real estate vouchers in China, and the units and individuals that file and taxable real estate vouchers that are filed abroad, protected by Chinese law, and applicable in China.
- (2) Basis for tax calculation. The stamping object of real estate stamp tax is a specific act, and the tax basis is the amount of funds or physical amount of the act. The tax basis of stamp tax for real estate property transfer receipts is the amount contained in the receipts; real estate rights The tax basis of stamp tax for certificates (including house ownership certificate and land use certificate) is calculated on a piece-by-piece basis; the tax basis of stamp tax for housing lease contracts is the lease amount; and the tax basis for real estate purchase and sale contracts is the purchase and sale amount.
- (3) Tax rate. There are two types of real estate stamp duty rates: the first is the proportional tax rate, which is applicable to real estate property transfer documents, the tax rate is 0.05%, and it is also applicable to house lease contracts, the tax rate is 1%, and the real estate purchase and sales contract, the tax rate is 0. 03%; the second is a fixed tax rate, applicable to real estate rights certificates, including house property rights certificates and land use certificates, the tax rate is 5 yuan per piece.
- (4) Tax payment period and tax location. The real estate stamp tax taxpayer calculates the taxable amount by himself according to the tax law, purchases and affixes a stamp stamp (that is, decals) at one time, that is, when the taxpayer establishes the document and receives the certificate, the tax liability occurs, that is, decals, and It does not refer to the effective date of the voucher. Stamp tax is implemented by the three self method, that is, the taxpayer calculates the taxable amount based on the type of taxable voucher and the applicable [9] tax item tax rate and purchases flowers (that is, pays taxes on its own. Generally, it is sold at the local tax authority or other tax stamps. Purchase of flowers on the premises), self-decals; for some vouchers with a large amount of decals and frequent decals, the tax authorities may adopt tax remittance and remittance methods for approval. The remittance period shall be determined by the tax authorities according to the amount of tax payable Specify it, but no longer than one month.
- (5) Tax reduction and exemption. Exemptions from stamp duty on real estate include:
- First, a copy or transcript of the voucher for which stamp duty has been paid, but if the copy or transcript is used as the original, a separate stamp should be affixed;
- Second, the property owner donates the property to the government, the social welfare unit, and the papers established by the school;
- Third, other documents exempted from taxation upon approval by the Ministry of Finance.