At present, the actual contract tax rate in real estate transactions is mainly between 1% and 3%. Then, does the enactment of the deed tax law mean that the contract tax cost in the real estate transaction will increase?
It is reported that the Provisional Regulations of the peoples Republic of China on deed tax issued in 1997 stipulates that the deed tax rate is 3% - 5%, and the specific tax rate is determined by local governments.
From the specific provisions, the deed tax collection has been upgraded from the provisional regulations to the legal level, and the deed tax rate has remained the same, still at 3% - 5%.
For many years, the real estate transaction has been enjoying the contract tax relief policy. In the regulation of the real estate market, the reduction and exemption of deed tax is also a conventional tool.
The latest real estate deed tax rate adjustment was in 2016. The notice on adjusting the preferential policies of deed tax business tax in real estate transactions (CS  No. 23) stipulated that the area of individual purchasing the only house in a family (family members include house buyers, spouses and minor children, the same below) is 90 If the area is more than 90 square meters, the deed tax will be reduced by 1.5%. For the second set of improved housing purchased by individuals with an area of 90 square meters or less, the deed tax shall be levied at a reduced rate of 1%; if the area is more than 90 square meters, the deed tax shall be levied at a reduced rate of 2%. The specific operation measures shall be jointly formulated by the competent departments of finance, taxation and real estate of all provinces, autonomous regions and municipalities directly under the central government.
Among them, the four first tier cities in Beijing, Shanghai, Guangzhou and Shenzhen enjoy relatively small preferential power, and the highest contract tax rate of the second set of housing transaction in these four cities reaches 3%.
Xu Xiaole, chief market analyst of Shell Research Institute, believes that according to the contract tax law, the specific applicable tax rate of deed tax shall be proposed by the peoples governments of provinces, autonomous regions and municipalities directly under the central government within the tax rate range specified in the preceding paragraph, and submitted to the standing Committee of the peoples Congress at the same level for decision, and to the Standing Committee of the National Peoples Congress and the State Council for the record. Therefore, it does not mean that the deed tax on real estate transactions will increase after September 1, 2021.
However, the passage of the deed tax law still has a certain impact on the market expectation. For example, some real estate agents and salesmen regard the period before the enactment of the deed tax law as a window period, and take this opportunity to encourage buyers to speed up the transaction.
Zhang Dawei, chief analyst of Zhongyuan Real estate, believes that the real estate market is a bow in the water and policy changes are easy to cause overreaction. However, the passage of the deed tax law does not change the current contract tax policy in essence, and its influence will soon become stable.
Yan Yuejin, research director of think tank center of Yiju Research Institute, pointed out that the tax collection of deed tax has been upgraded from the temporary regulations to the legal level, which has stronger binding effect on the subsequent regulation and guidance of housing and other transactions. But from the policy tone of this year, more emphasis is on deed tax subsidy, so the contract tax rate of real estate transactions will not be increased in the short term. He said three of the most important tax items in the field of housing transactions are deed tax, value-added tax and individual tax. After the deed tax law is passed, only VAT still stays at the level of provisional regulations. Since the draft of the solicitation for comments on VAT law has been published, it is possible to pass the legislation of VAT in the next step. He thinks that from the perspective of real estate tax reform, the promotion of the legislation of various real estate related taxes is an important part of the reform of real estate tax. It is recognized by all walks of life that raising the tax on holding and reducing the tax on transaction is the main direction of reform. In this sense, as a transaction link, the contract tax will still enjoy preferential policies in a certain time. Extend the reading official Xuan! The great adjustment of the deed tax rate directly affects your house! The tax on deed does not increase the preferential tax rate of buying houses, nor does it cancel the source of this article: editor of economic reporting responsibility in the 21st century: chenhequn_ NB12679
Yan Yuejin, research director of the think tank center of the E-House Research Institute, pointed out that the deed tax collection has been upgraded from the provisional regulations to the legal level, which has a stronger constraint on the follow-up regulation and guidance of housing and other transactions. However, from the perspective of this years policy keynote, more emphasis is placed on the deed tax subsidy. Therefore, the deed tax rate of real estate transactions will not be increased in the short term.
He said the three most important tax items in the field of housing transactions are deed tax, value-added tax and personal tax. After the passage of the deed tax law, only the value-added tax remains at the level of provisional regulations. As the draft of the VAT law has been published, the next step is likely to be passed.
He believes that from the perspective of real estate tax reform, the promotion of various real estate related tax legislation is an important part of the real estate tax reform. Raising the tax on holding and reducing the tax on transaction is the general direction of reform recognized by all walks of life. In this sense, as a part of the transaction, the deed tax will still enjoy preferential policies in a certain period of time.