Shanghai issues a document to extend the validity period of individual housing taxation pilot and Chongqing announces 2021 high-end residential price standards
How far is real estate tax from landing in the first 10 years of the pilot program?
Recently, the Shanghai Municipal People's Government issued the "Notice on Extending the Validity Period of the "Interim Measures of Shanghai Municipality on the Implementation of the Pilot Real Estate Tax Collection on Certain Individual Housing".
According to the content of the notice, the document issued and implemented by Shanghai in 2011 has been assessed to be implemented and will continue to be implemented.
Chongqing has also issued a new notice on the implementation of real estate tax.
10 years have passed since Shanghai and Chongqing took the lead in piloting real estate tax on individual housing in January 2011.
What are the changes in property tax in the two pilot cities?
Does it play a role in restraining housing prices?
Pilot
Property tax levied in both places
The focus is different
Although the real estate tax pilot schemes of Shanghai and Chongqing are all based on further improving the real estate tax system, rationally regulating the income distribution of residents, correctly guiding housing consumption, and effectively allocating real estate resources, the real estate tax in these two pilot cities is two version.
The scope of Shanghai's real estate tax pilot program covers the entire administrative area of Shanghai. The "average transaction price of new houses" as a reference refers to the average transaction price of new commercial residential buildings in Shanghai in the previous year.
The scope of the pilot property tax in Chongqing covers 9 districts in the main city of Chongqing. The "average transaction price of new houses" as a reference refers to the arithmetic average of the average transaction price of newly built commercial housing in the main city in the last two years.
The objects of the personal housing property tax in Chongqing are individual-owned single-family commercial houses, newly-purchased high-end houses by individuals, and the first and above ordinary houses newly purchased by individuals who have no household registration, no business, or no job in Chongqing.
Individual high-end houses and multiple ordinary houses that are not included in the scope of taxation will be included in the scope of taxation in due course.
The Shanghai real estate tax is levied on the city's resident families newly purchased in the city and belonging to the second or above of the resident family's housing (including newly purchased second-hand stock housing and newly built commercial housing) and non-resident families in the city. Newly purchased housing in the city.
The real estate tax plans of the two places reflect the vigilance of foreign real estate speculators.
In terms of stock housing, Shanghai will not expropriate the stock, and Chongqing stock single-family commercial housing will be expropriated.
Regarding the tax-free area (starting point), Shanghai is calculated on the basis of "per capita area", with 60 square meters per capita (inclusive) as the starting point.
Chongqing is based on the "household area", a family can only deduct the tax-free area for a set of taxable housing.
There are two thresholds of 100 square meters and 180 square meters per household.
The applicable tax rate in Shanghai is divided into two levels: 0.4% and 0.6%; in Chongqing, there are three levels: 0.5%, 1% and 1.2%.
It can be seen that Chongqing's tax rate is higher than that of Shanghai.
Generally speaking, the Chongqing model focuses on high-end luxury residences, which is more in line with Chongqing's real estate regulation concept of “guaranteed at the low end, a market at the mid-end, and restrained at the high end”, and effectively restricts the transaction of high-end residential properties.
The Shanghai model uses multiple suites as the main expropriation object, which has a restraining effect on real estate speculation.
Variety
Chongqing high-end residential property tax line
Break through 20,000 yuan for the first time
In the past 10 years, there have been no major changes in the real estate tax policies of the two cities.
The subjects of expropriation in the Shanghai pilot program have always been the second or above houses newly purchased by Shanghai resident households in Shanghai (including newly purchased second-hand stock houses and newly built commercial houses) and non-Shanghai resident households in Shanghai. Newly purchased housing.
The tax calculation basis is the appraised value determined with reference to the real estate market price of taxable housing, and the appraised value is reassessed in a prescribed period.
Real estate tax is temporarily calculated and paid at 70% of the taxable housing market transaction price.
The applicable tax rate is tentatively set at 0.6%. If the market transaction price per square meter of taxable housing is twice (including twice) the average sales price of newly built commercial housing in Shanghai last year, the tax rate is temporarily reduced to 0.4%.
Due to the definition of high-end housing in Chongqing, Chongqing's housing construction department will announce new price standards for high-end housing every year.
The recent notice issued by the Chongqing Municipal Commission of Housing and Urban-rural Development shows that the newly purchased high-end housing by individuals in the central urban area of the main city in 2021 refers to housing with a transaction floor area of 22,106 yuan per square meter and above.
According to statistics, the tax line of Chongqing's real estate tax has shown a gradual upward trend over the years.
Among them, it is 13941 yuan/square meter in 2017, 15455 yuan/square meter in 2018, 18455 yuan/square meter in 2019, 19587 yuan/square meter in 2020, and 22106 yuan/square meter in 2021.
attention
Real estate tax
"Legislation first"
In recent years, there have been reports from time to time that my country will levy a full-scale real estate tax. Will the real estate tax come soon?
In fact, the “real estate tax” piloted in Chongqing and Shanghai is not the same as the “real estate tax”.
Real estate tax is a comprehensive concept, that is, all taxes directly related to the real estate economic movement process belong to real estate tax.
Including real estate business tax, real estate tax, urban land use tax, urban real estate tax, stamp tax, etc.
Real estate tax is a kind of property tax levied on property owners based on the taxation object of the house and the taxable residual value or rental income of the house.
In December 2020, Minister of Finance Liu Kun published an article in the People's Daily stating that in accordance with the principle of "legislation first, full authorization, and step-by-step advancement", the real estate tax legislation and reform will be actively and steadily promoted.
Liu Shangxi, president of the Chinese Academy of Fiscal Sciences, said in an interview with the media recently that the introduction of real estate taxes should be particularly prudent and weigh various factors.
The real estate tax must be “legislated first”. The key to the introduction of real estate tax is to see the progress of the legislation. Without legislation, there is definitely no way to levy it.
Legislation requires procedures and time. There is no draft of real estate tax legislation, and there is no sign of the introduction of real estate tax legislation.
Even if legislation is enacted, it still needs to be implemented. In terms of collection and management, there are still many conditions to create and prepare, including verification, evaluation, and collection. The workload will be very large.
Text / reporter Zhu Kaiyun
Real estate tax has been piloted for 10 years
What is the effect
What role did the pilot real estate taxes in Chongqing and Shanghai play?
Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, said that Chongqing and Shanghai have been piloting property tax for 10 years. The latest notices from the two governments on property tax indicate that the pilot property tax will continue and the reform of property tax will continue.
Housing prices in many cities in China are still rising. The implementation of real estate tax and other policies will help stabilize market expectations, help further guide investment behavior, and truly promote the healthy development of the real estate market.
An analyst who has been concerned about the Chongqing real estate market for a long time said that the real estate tax introduced in Chongqing played a role in controlling excessive investment in high-end properties and cracking down on speculation. The introduction of this real estate tax stabilized citizens' expectations of the property market at that time.
In addition, in accordance with policy regulations, all personal housing property tax revenue collected by Chongqing is used for the construction and maintenance of public rental housing.
The pilot property tax in Chongqing has also contributed to the construction of the housing security system.