When the new contract tax law comes, do you have to pay more contract tax when you buy a house? did not

category:Finance
 When the new contract tax law comes, do you have to pay more contract tax when you buy a house? did not


As early as 1950, China began to levy deed tax, and the current one is the Provisional Regulations of the peoples Republic of China on Deed Tax issued in 1997, which clearly states that the contract tax rate is 3% ~ 5%. In order to implement the principle of statutory taxation, the deed tax law has been upgraded from the Provisional Regulations of the State Council to law. The new contract tax law has been revised several times and passed at the 21st Meeting of the Standing Committee of the 13th National Peoples Congress recently, while the tax rate remains at 3% - 5%.

Therefore, compared with the existing contract tax laws and regulations, the new law does not adjust the deed tax rate.

Where does the current preferential tax rate of 1%, 1.5% or even 2% come from?

In fact, the Ministry of Finance and the State Administration of taxation have issued the deed tax preferential policies for a long time. The latest preferential policies come from the notice on adjusting the preferential policies of deed tax and business tax in real estate transactions (hereinafter referred to as the notice) issued by the finance and taxation department in 2016.

According to the notice, the deed tax will be levied at a reduced rate of 1% for the purchase of a familys only house with an area of 90 square meters or less, and a 1.5% tax rate for those with an area of more than 90 square meters.

Shi said that some provisions in the tax law of the new lease indicate that the above preferential tax rate will continue.

According to Article 6 of the new contract tax law, according to the needs of national economic and social development, the State Council may provide for the exemption or reduction of deed tax on the guarantee of residents housing demand, enterprise restructuring and reconstruction, and post disaster reconstruction, and report it to the Standing Committee of the national peoples Congress for the record.

Shi explained that the housing demand guarantee of residents actually includes rigid housing and improved housing, and the aforementioned notice is in fact the deed tax preference for rigid housing and improved housing. Therefore, the new contract tax law has made it clear that the State Council can exempt or reduce the deed tax on the housing demand guarantee of the State Council, which in fact means that the current preferential contract tax policy will continue.

In addition, Article 3 of the new contract tax law states that provinces, autonomous regions and municipalities directly under the central government may determine different tax rates for the ownership transfer of different subjects, different regions and different types of housing in accordance with the procedures specified in the preceding paragraph.

At present, in the notice, different tax rates have been implemented for the first house in need and the second house for improvement, which has also been confirmed in this article. Shi Wenwen said.

Why does the statutory tax rate not fall?

At present, the statutory tax rate of deed tax is 3% - 5%. Most of the 31 provinces (autonomous regions and municipalities directly under the central government) levy taxes according to the minimum tax rate of 3%, but some provinces choose the tax rate of 4%. However, in practice, there are preferential tax rates of 1%, 1.5% and 2% in the notice.

Shi Wenwen said that during the contract tax legislation, some people suggested that the tax rate range should be reduced to 1% - 3%, because this tax rate range is consistent with the current actual tax rate, and it also sends a tax reduction signal to boost market confidence, but this proposal has not been adopted. The relevant departments may have two main considerations. One is that the deed tax is an important source of local fiscal revenue, and maintaining the existing tax rate leaves room for future revenue collection. Second, maintaining a higher tax rate can leave room for future regulation of the real estate market.

After the reform of business tax to value-added tax, the local government has lost the business tax, which is the traditional local main tax. At present, the local tax embodiment is under construction. Deed tax is the second largest tax category of local government at present, with an income of 621.3 billion yuan in 2019, close to the land value-added tax (646.5 billion yuan in 2019).

Although the deed tax preferential policy in the above notice will continue at present, it is not written into the law after all, and the state will adjust it according to the real estate market and other conditions. At present, the legal deed tax rate can be up to 5%, compared with the current 1%, there will be a lot of room for regulation and control. Shi Wenwen said.

Although the deed tax preference such as house purchase by rigid demand is not written into the new contract tax law, the change of ownership of land and house between husband and wife during the existence of marriage relationship, or the inheritance of land and house ownership by the legal heir is not subject to deed tax, which is written into the law.

Shi Wenwen said that in the current practice, the deed tax is also not levied in these two situations, because the deed tax is to tax the market transaction of land and housing ownership, while the change, inheritance of land and house ownership within the family is obviously not market behavior. The new contract tax law clearly stipulates that there is no tax in these two cases, so as to better protect the rights and interests of relevant personnel and better connect with the civil code. Wang Huayu, deputy director of the finance and tax law research center of Shanghai Jiaotong University, told first finance and economics that the legislation of deed tax law mainly makes technical arrangement and legalization on the current contract tax system and collection and management policies, standardizes the local policy-making procedures of deed tax as a local tax category, and provides legal support for the application of big data collection and management technology in the field of deed tax, which is a total failure The legislative process of change, detail perfect. Generally speaking, the contract tax legislation is tax system translation, but it is more standardized in expression technology to meet the needs of economic and social development.

Shi Wenwen said that in the current practice, the deed tax is also not levied in these two situations, because the deed tax is to tax the market transaction of land and housing ownership, while the change, inheritance of land and house ownership within the family is obviously not market behavior. The new contract tax law clearly stipulates that there is no tax in these two cases, so as to better protect the rights and interests of relevant personnel and better connect with the civil code.

Wang Huayu, deputy director of the finance and tax law research center of Shanghai Jiaotong University, told first finance and economics that the legislation of deed tax law mainly makes technical arrangement and legalization on the current contract tax system and collection and management policies, standardizes the local policy-making procedures of deed tax as a local tax category, and provides legal support for the application of big data collection and management technology in the field of deed tax, which is a total failure The legislative process of change, detail perfect. Generally speaking, the contract tax legislation is tax system translation, but it is more standardized in expression technology to meet the needs of economic and social development.