The real estate tax will be implemented at a faster pace. What will happen to over 40% of urban households in China?

2022-07-07 0 By

The average number of homes owned by urban households in China has reached saturation, in line with the country’s new regulations on the property market.In addition, at present, the actual rate of urban housing ownership in China has broken through 96%, while the social group of urban families with two or more houses is as high as 40%.That is to say, the vast majority of urban families in China have real estate, far beyond the level of developed countries.Households with multiple homes account for 40 per cent of the total, and these households are likely to be the main targets of property taxes.By the end of 2022, real estate registration nationwide network!Taxation Administration and Ministry of Natural Resources to achieve information sharing!This time, the document said that by the end of 2022, information on the whole process of tax-related business of real estate registration should be shared in real time.It is worth noting that the national real estate information will be fully shared with the tax department without reservation. With the national big data, it can be said that the collection of real estate tax is very easy.The taxation department and the natural resources department should base on the local information construction reality, strengthen the cooperation closely, take solving practical problems as the guidance, determine the information sharing mode reasonably, and realize the real-time sharing in a timely manner.By the end of 2022, all municipal and county tax authorities and natural resource authorities across China should realize real-time information sharing of the whole process of tax-related business of real estate registration.: Xiamen Municipal Bureau of Statistics recently released “2021 Xiamen real estate development investment operation analysis” proposed, multiple measures to stabilize the real estate sales market, do a good job of “real estate tax” pilot landing in Xiamen preparatory work, in order to prevent the city’s real estate market appeared big fluctuations.In fact, real estate tax reform has clearly hit the accelerator since 2021.Which properties will be expropriated?Can make clear a bit is, residential of base of house of commodity residence, office building, country waits for distinction to treat.In this regard, the pilot instructions give relatively detailed classification and positioning: the instructions make clear three points: first, rural homestead and housing above it are not included in the collection.Second, office buildings, shops and other non-residential properties, continue to follow the current provisions.The background here is that, as early as 1986, China has issued relevant regulations on property tax, property tax for business properties, and self-housing properties are exempt.Property tax has been levied on non-residential real estate, shops and office buildings for decades.Office property tax is generally levied at 12% of the rent, which is likely to continue in the future.Third, residential real estate, namely commercial residential, residential and commercial apartments, is the main target of this round of new tax.The statement of this series of high-level meetings means that the real estate tax, which has been discussed for more than a decade, has reached the stage of substantial promotion, and its pilot implementation in some cities is within sight.So far, the most authoritative speech on real estate tax should be: in accordance with the principle of “legislation in advance, fully authorized, step by step”, to promote the legislation and implementation of real estate tax.A real estate tax will be levied on industrial and commercial real estate and individual housing based on their assessed value, and the tax and fee burden on construction and transaction links will be appropriately reduced, so as to gradually establish a sound modern real estate tax system.Above the object of taxation and taxpayer, the rural homestead that has lawfully and the residence on it does not bring into the scope of experimental taxation.This pilot project will continue to implement non-residential real estate in accordance with the Provisional Regulations of the People’s Republic of China on Real Estate Tax and the Provisional Regulations of the People’s Republic of China on Urban Land Use Tax. The current system of tax scope, tax basis, tax rate, tax preference and collection management will remain unchanged to ensure the shift of tax burden during the pilot period.According to a CCTV news release on Oct. 23, the 31st session of the Standing Committee of the 13th National People’s Congress (NPC) decided to authorize The State Council to carry out the trial reform of real estate tax in some regions.The subject of collection is residential and non-residential real estate in the pilot areas.The pilot period is five years.It is no surprise that the pilot cities and implementation plans for the property tax will be released before the end of this year, which also means that the property market will usher in a comprehensive era of change, the specific direction of which we have to wait and see.