From regulations to tax laws, the tax rate has not changed
Zhang Dawei, chief analyst of Zhongyuan Real estate, said that the deed tax rate is 3% to 5% stipulated in the deed tax law, which has no change from the deed tax regulations issued in 1997. This is from Regulations to tax statutory, which does not mean the increase or decrease of deed tax.
Yan Yuejin, research director of the think tank center of the E-House Research Institute, further said that the deed tax has risen from the temporary regulations in the past to the law, which is more binding for the subsequent regulation and guidance of housing and other transactions. In the field of housing, there are three important tax items, including deed tax, value-added tax and personal tax. After the VAT law is passed, the three tax items of housing transaction will have clear legal support, and the relevant effect will be higher.
Yan Yuejin explained that, first, in housing transactions, the deed tax is usually 3%, especially for high-end projects, while ordinary residential buildings are generally carried out at 1.5%. There are similar regulations in all parts of the country, and there is no saying that the contract tax is 5% or increased. Second, in terms of the policy content this year, the deed tax policy emphasizes more on the deed tax subsidy, which is not to say that the deed tax rate is increased. Third, from the perspective of tax and fee reform, the real estate tax reform has clearly defined the direction of steady promotion, which means that the progress is slow. The most likely future reform is the value-added tax policy, especially in cities with overheated housing prices.
However, Beijing, Shanghai, Guangzhou and Shenzhen will not implement deed tax preference.
Photo source: State Administration of Taxation
For example, in the deed tax declaration issued by Zhengzhou Taxation Bureau on January 19, 2020, Zhengzhou deed tax rate is 4%. For individual purchase of the only family housing (family members include the buyer, spouse and minor children), the deed tax shall be levied at the rate of 1% if the area is 90 square meters or less; the deed tax shall be levied at the rate of 1.5% if the area is more than 90 square meters; if the area is 90 square meters or less, the deed tax shall be levied at the rate of 1% If the area is more than 90 square meters, the deed tax will be reduced at the rate of 2%.
In several opinions on implementing the Interim Regulations of the peoples Republic of China on Deed Tax issued by Shanghai on April 28 this year, it is clear that the applicable tax rate of Shanghai is 3%. The opinion is valid until April 30, 2030.
On the other hand, the contract tax on house purchase in Beijing has been reduced from 4% to 3% since July 1, 2002. For ordinary residential buildings purchased by individuals, the tax rate will be reduced by half on the basis of the 3% tax rate, and the original provisions on sectional collection of more than 120 square meters will be cancelled.
CCTV finance and economics reported on August 12 that the contract tax law, in accordance with the principle of shifting the tax system, will clarify the current effective contract tax exemption policy, stipulating that the husband and wife change the ownership of land and housing during the existence of marriage relationship, and that the legal heir inherits the ownership of land and housing through inheritance, and is exempt from the deed tax.
Previously, the draft contract tax law authorized the State Council to stipulate other tax reductions and exemptions according to the needs of economic and social development, but the specific scope was not clear. The deed tax law refines this authorization clause, further clarifies the scope of tax reduction and exemption, and stipulates that the State Council may exempt or reduce the deed tax for housing demand guarantee, enterprise restructuring and reconstruction, and post disaster reconstruction, and report to the Standing Committee of the National Peoples Congress for the record.
Yan Yuejin said that compared with the previous regulations, the tax law has been adjusted at different levels, which is the biggest change. This is related to the legislative work, but has little to do with the regulation of the property market. More importantly, many contents of the past regulations have become outdated, and some new forms of transactions such as housing and land have emerged, which must be amended, deleted or supplemented at the same time as they are upgraded to laws. Firstly, the concept of state-owned land has been clearly defined, and the scope of collective land management has been increased. With the implementation of the new land management law, the transaction of rural collective business construction land is bound to increase, and the relevant deed tax collection must have laws to follow.
Second, this time, it has been made clear that if the ownership of land and housing is transferred by means of valuation investment (equity), debt repayment, transfer, reward, etc., the deed tax shall be levied in accordance with the provisions of this law. In fact, the new transaction forms in recent years have been taxed, making the tax collection of such transactions in accordance with the norms.
There are voices on the Internet that at present, the deed tax rate of the first house is 1% - 1.5%, and after the implementation of the deed tax law next year, the purchase cost will be increased.
However, there are also many objections.
According to the supplementary content of Article 3 of the deed tax law, provinces, autonomous regions and municipalities directly under the central government may determine the differential tax rates for the ownership transfer of different subjects, different regions and different types of housing according to the procedures specified in the preceding paragraph.
It is not difficult to see that the specific implementation of tax rates around the country is not fixed, which does not necessarily increase the cost of buying a house.
In this regard, Yan Yuejin, research director of the think tank center of E-House Research Institute, told the observer.com that at present, the Provisional Regulations of the peoples Republic of China on deed tax are implemented all over the country, which stipulates that the tax rate is the same as 3% - 5%. The difference is that the former Interim Regulations have been upgraded to laws, which have stronger binding effect on the follow-up regulation and guidance of housing transactions, but the content has not changed too much, There is no tax rate adjustment.