State Administration of Taxation Interpretation of the Collection and Administration of the Individual Income Tax Policy Supporting Residents to Buy Houses

　　China News Service, Beijing, September 30th: The State Administration of Taxation interprets the collection and management matters related to the personal income tax policy to support residents to buy houses

　　Zhao Jianhua, a reporter from China-Singapore Finance and Economics

　　On the 30th, the Ministry of Finance and the State Administration of Taxation issued the "Announcement on Individual Income Tax Policies for Supporting Residents to Exchange Houses".

On the same day, the State Administration of Taxation interprets the relevant collection and management matters.

　　From October 1, 2022 to December 31, 2023, taxpayers who sell their own homes and repurchase their homes on the market within 1 year after the current home is sold will receive a tax refund for the personal income tax paid on the sale of their current home. .

　　During the period from October 1, 2022 to December 31, 2023, for taxpayers who meet the tax refund conditions, when the amount of the newly purchased house is greater than or equal to the transfer amount of the current house, the paid individual income tax will be fully refunded; When the amount of the house purchased is less than the transfer amount of the current house, the individual income tax paid for the current house shall be refunded according to the proportion of the amount of the newly purchased house to the transfer amount of the current house.

The calculation formula is:

　　1. If the amount of the newly purchased house is greater than or equal to the transfer amount of the current house, the tax refund amount = the individual income tax paid when the current house is transferred;

　　2. If the amount of the newly purchased house is less than the transfer amount of the current house, the tax refund amount = (the amount of the newly purchased house ÷ the transfer amount of the current house) × the individual income tax paid when the current house is transferred.

　　Among them, the original house transfer amount and the newly purchased house amount do not include value-added tax.

　　For the sale of houses jointly held by multiple persons or the newly purchased houses jointly held by multiple persons, the amount of the taxpayer's current house transfer or the amount of newly purchased houses shall be determined according to the taxpayer's share of property rights.

　　The time of selling the existing house shall be subject to the time of personal income tax payment when the taxpayer sells the house.

If the newly purchased house is a second-hand house, the time of purchasing the house shall be subject to the tax payment time of the deed tax when the taxpayer purchases the house or the registration time stated in the real estate certificate.

The tax authority will pre-fill the above tax-related information for the taxpayer, and the taxpayer can check with the time marked on the tax payment certificate obtained when paying the tax.

If the newly purchased house is a new house, the time of purchasing the house shall be subject to the time when the housing transaction contract is filed with the housing and urban-rural development department, and the taxpayer can fill in the housing transaction contract according to the facts.

　　Taxpayers who enjoy the individual income tax refund policy for residents' exchange of housing shall file an application with the competent tax authority that collects individual income tax on income from the transfer of existing houses.

When the taxpayer sells the house, the taxpayer shall apply for the tax refund to the taxation authority in which the personal income tax is paid.

The tax department implements a one-window processing system for real estate registration taxes and fees. Under normal circumstances, taxpayers should pay the personal income tax on the income from the transfer of the current house in the local government service hall or real estate trading hall, etc., so they should still go to the government service hall or real estate transaction. If the tax refund application is filed by the hall, if the local tax authority stipulates otherwise, it shall be processed in accordance with the regulations.

　　If the taxpayer no longer meets the conditions for enjoying the tax refund policy due to the rescission, revocation or invalidity of the housing transaction contract for the newly purchased house, etc., the taxpayer shall take the initiative to pay it back to the competent tax authority within the 15th day of the month following the occurrence of the contract rescission, revocation or invalidity. The tax has been refunded; if the taxpayer pays the tax refund overdue, the tax authority will impose a late payment fine in accordance with the law.

The taxation department will strengthen the management of tax refund review and repayment of tax after contract cancellation by sharing information with the housing and urban-rural development department.

　　The State Administration of Taxation emphasized that the personal income tax policy of supporting residents to buy houses is aimed at encouraging residents to buy houses and improve their living conditions. Taxpayers should apply truthfully in accordance with laws and regulations, fill in and check the application form carefully, and verify the authenticity of the contents and attached materials. , reliability and integrity.

For those who provide false information and materials to obtain tax refunds fraudulently, the tax authorities will deal with them in accordance with the Law of the People's Republic of China on the Administration of Tax Collection and its implementation rules.

　　The tax department will also carry out publicity, interpretation and training through various channels and methods to remind and help eligible taxpayers apply for tax refunds and enjoy tax benefits in a timely manner.

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