The deed tax rate will remain unchanged (financial adviser)

　　Recently, the 21st meeting of the Standing Committee of the 13th National People's Congress voted and passed the "Deed Tax Law of the People's Republic of China", which will come into effect on September 1, 2021.

Involved in real estate transactions, there will be deed tax. When the deed tax law comes, what has changed?

What impact will it have on the people?

　　Many people are concerned about changes in the deed tax rate.

The "Interim Regulations of the People's Republic of China on Deed Taxation" promulgated in 1997 has made it clear that the deed tax rate is 3%-5%.

The deed tax law basically continues the provisions on tax preferences in the interim deed tax regulations, and authorizes provinces, autonomous regions, and municipalities to determine differential tax rates for different subjects, different regions, and different types of housing ownership transfers.

"This regulation embodies the idea of ​​improving the reform of the local tax system, granting local taxation management authority, and mobilizing the enthusiasm of local taxation management to promote the healthy development of the real estate market due to urban policies," said Fan Yong, a professor at the Central University of Finance and Economics.

　　What are the 1%, 1.5%, and 2% deed tax rates mentioned by some real estate agencies?

In 2016, the relevant departments issued the "Notice on Adjusting Preferential Policies for Deed Tax and Business Tax in Real Estate Transactions", stipulating that for individuals purchasing the only house in the family with an area of ​​90 square meters or less, the deed tax will be levied at a reduced rate of 1%, with an area of ​​90 square meters Deed tax will be levied at a reduced tax rate of 1.5% for those above meters; for individuals purchasing a second family improvement house with an area of ​​90 square meters or less, the deed tax will be levied at a reduced rate of 1%. For those with an area of ​​90 square meters or more, Deed tax is levied at a reduced tax rate of 2%.

　　"The above-mentioned preferential policies are still being implemented, and the deed tax law has not adjusted the deed tax rate." Fan Yong said.

　　In addition to the tax rate issue, there are some things worthy of attention.

The deed tax law is clear that the ownership of land and houses is changed between husband and wife during the marriage relationship, and the legal heir inherits the ownership of land and houses through inheritance, and the deed tax is exempted.

In order to reflect the support for public welfare undertakings, the provision of land and housing for non-profit schools, medical institutions, and social welfare institutions for office, teaching, medical care, scientific research, pensions, and assistance and exemption from contract tax has been added.

　　At the same time, the deed tax law also added tax refund regulations.

Before the registration of land and house ownership is handled in accordance with the law, if the contract is not effective, invalid, revoked or terminated, the taxpayer may apply to the tax authority for refund of the tax paid, and the tax authority shall handle the tax refund in accordance with the law.

　　Tax declarations are also simplified.

The time limit for tax declaration and payment shall be declared and paid within 10 days after the occurrence of the tax obligation stipulated in the Provisional Regulations on Deed Tax and the tax shall be paid within the time limit approved by the tax authority, instead of the declaration and payment before the registration of land and house ownership.

　　Chai Jin