Stamp duty law for public opinion: focus on the 4 major focus on house purchase exemption from stamp duty

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 Stamp duty law for public opinion: focus on the 4 major focus on house purchase exemption from stamp duty


Information map of Ministry of finance. China News Network reporter Li Jinlei photo

Provisional Regulations on stamp duty will rise to law

In August 1988, the State Council promulgated the Provisional Regulations of the Peoples Republic of China on Stamp Tax, which stipulates that from October 1, 1988, stamp tax shall be levied on units and individuals that have written, received contracts, and transferred documents of property rights.

According to the data, from 1988 to 2017, the total stamp tax levied nationwide was 2145 billion yuan, an average annual increase of 19.1%, of which 22.6 billion yuan was levied in 2017.

From the actual situation, the elements of the stamp tax system are basically reasonable and running smoothly. It can basically keep the current tax system framework and tax burden level unchanged, and upgrade the Interim Regulations into law. In the relevant notes, the Ministry of Finance and the General Administration of Taxation pointed out that the enactment of the stamp tax law is conducive to improving the legal system of stamp tax and enhancing its scientific, stable and authoritative nature.

Stock market information map. China News Agency reporter Luo Yunfei photo

As for taxpayers, the Draft Request for Opinions is in line with the Provisional Regulations and relevant provisions: the taxpayer of stamp duty shall be the one who formulates and receives legally valid taxable vouchers in the Peoples Republic of China or who conducts securities trading in the Peoples Republic of China.

In terms of tax rate, the draft for comments basically maintained the current tax rate level, except for adjusting the tax rate of a few tax purposes appropriately. According to the nature of taxable vouchers, the proportional tax rate or the fixed tax rate shall be applied separately.

Among them: according to different types of taxable contracts, the tax rates are three thousandths of the price or remuneration specified in the contract, 0.5 thousandth of the ten thousandth of the ten thousandth of the ten thousandth; the tax rate of the transfer of taxable property rights is five thousandths of the payment price; the tax rate of taxable rights and licenses is five yuan each; and the tax rate of the taxable business account book is the capital (equity) receivable. 2.5 per 10,000 of the total amount of capital reserve; the tax rate of securities trading is one thousandth of the total amount of transaction.

It is worth noting that in the current volatile trend of the stock market, there are voices proposing to reduce and exempt the stamp duty on securities trading in order to boost the stock market. However, according to the draft, the stamp duty on securities transactions remains unchanged at 1 per thousand.

Stamp duty adjustment rights for securities transactions are proposed to the State Council.

The draft solicits opinions stipulates that the taxpayer or tax rate adjustment of stamp duty on securities trading shall be decided by the State Council and submitted to the Standing Committee of the National Peoples Congress for the record.

Zhao Xijun, deputy dean of the School of Finance and Finance of Renmin University of China, believes that this is equivalent to an authorization act, which means that the National Peoples Congress authorizes the State Council to decide on the adjustment of stamp duty on securities trading.

The Ministry of Finance and the General Administration of Taxation also pointed out in the relevant notes that this is to better meet the actual needs, facilitate camera control, while reflecting the requirements of the statutory principle of taxation.

People consult to buy a house. China News Network reporter Cheng Chunyu photo

The 6 case is that tax-free housing can be exempted.

The Draft Request for Opinions stipulates six tax exemptions: first, in order to avoid repeated taxation, duplicates or copies of tax receipts are exempted;

Second, in order to support agricultural development, tax exemption is granted to sales contracts and agricultural insurance contracts concluded by farmers, farmersprofessional cooperatives, rural collective economic organizations and villagers committees for purchasing agricultural production materials or selling self-produced agricultural products.

Thirdly, in order to support the financing of specific subjects, interest-free or discount loan contracts, loan contracts concluded by international financial organizations providing preferential loans to China, and loan contracts concluded by financial institutions and small micro-enterprises are exempted from tax.

Fourth, in order to support the development of public utilities, tax exemption is granted to the property owner who donates the property to the government, schools and social welfare institutions.

Five, in order to support national defense construction, the taxable vouchers made and accepted by the armed forces and the armed police force are exempt from tax.

Sixth, in order to alleviate the burden of individual housing, the tax-payable vouchers for the transfer and leasing of housing shall be exempted from the stamp tax payable by individuals.

That is to say, buying a house without paying stamp duty is expected to be further determined through legislation.

Yan Yuejin, director of research at the think tank center of Yiju Research Institute, said that in reality, stamp duty is not a relatively large tax in real estate transactions. In real estate transactions, buyers pay more attention to deed tax, value-added tax, personal income tax and other taxes. However, the cost reduction similar to stamp duty can actually reduce the cost of the sale and leasing links, so it is of positive significance. (finish)

Source: China News Network Author: Li Jinlei responsible editor: Ji Ke _b6492