What Is Property Tax Depreciation?

Fixed asset tax refers to a tax levied on state-owned enterprises' occupation of national fixed assets in the pilot process of China's tax reform in the 1970s. In July 1979, a trial method was formulated to draft a comprehensive collection of this tax on state-owned industrial and commercial enterprises. Based on the taxation of the original value of the fixed assets of the enterprise, the industry adopts a differential tax rate based on the industry, the tax rate is 2 to 5% per month, and there are certain tax reduction and exemption regulations and double taxation regulations. ^[1]

Property tax

Japan's fixed asset tax is a property tax levied by the cities, towns, and villages where the fixed assets are located. It is a tax objected on land, housing, and depreciable assets. It is the main source of local government revenue. The tax base is the assessed value indicated on the taxable land inventory by the taxable object. The tax rate is determined according to the geographical location of the real estate, ranging from 1.4% to 2.1%. According to the housing supply policy, tax relief is provided for houses.

Whether the owner is a legal person or an individual, it has nothing to do with the income level of the owner. Property taxes account for a large proportion of municipal, municipal, and village taxes.

The fixed assets of the taxable object of fixed assets tax are land, houses and depreciated assets. For large depreciation assets, prefectures and counties are taxed if they exceed a certain amount. The fixed assets held by the state and local public organizations are not taxed. The designated cemeteries and public roads are not taxed on the designated houses and their land, schools, etc.

The taxpayer of the fixed asset tax is the owner of the fixed asset.

The standard rate of fixed asset tax is 1.4%, and the limit rate is 2.1%. However, when levying a tax rate of more than 1.7%, in principle, the record should be filed with the Minister of Self-Government, and the Minister of Self-Government may instruct the tax rate to be changed.

The collection period of the fixed asset tax is the first day of each calendar year, which is January 1. It is levied on those who have fixed assets on that day. The fixed asset tax payment date is April, July, December, and February, and the specific time is stipulated by the municipal regulations. The collection of fixed asset tax is based on the ordinary collection method, and the tax notice is served no later than 10 days before the payment deadline.