The so-called real estate and land integration tax is one of the new tax systems for real estate transactions that was launched in 2015. It is different from the housing tax as a "holding tax" and is a transaction tax in nature.
Because it is a transaction tax category, you only need to declare it if you sell your property, and you only have to pay further taxes if you make a profit.
As long as the real estate is acquired after 105 years, this tax regulation will apply when selling it.
To put it simply, the biggest difference between the real estate and land combined tax and the old real estate transaction system is that the actual income generated when the house and land are sold must be taxed together, with its own applicable tax rate, and "Short-term transactions" are heavily taxed at 35% or 45%.
This is also commonly known as the "heavy tax on combined real estate and land"!
Until April 28, 2010, the President announced the amendment to some provisions of the Income Tax Law to improve the income tax system integrating real estate and land, which is expected to curb short-term speculation in real estate, implement residential justice, prevent tax evasion, and maintain tax fairness.
A version 2.0 of the real estate and land integration tax that is more stringent than the original tax system is proposed, focusing on the following six major points:
1. Heavy taxation on short-term arbitrageurs: to inhibit individuals from short-term speculation in real estate
The main thing is to extend the time of the original version 1.0 and double it to become version 2.0. I will not go into details about the old system, but will help you explain the current new system.
Since the purchase of the house, profits generated from transactions in different years are taxed separately as follows:
Domestic individuals: that is, you are a national
【45%】Within 2 years
【35%】More than 2 years but less than 5 years
【20%】More than 5 years but less than 10 years
【15%】More than 10 years
Non-domestic individuals: foreigners
【45%】Within 2 years
【35%】More than 2 years
In fact, the point is that no matter when you sell your house, as long as you don't make a profit or lose money compared to the original purchase price, you don't have to worry about being charged this tax.
2. Legal persons are taxed as individuals: curbing short-term speculation in real estate by profit-making enterprises
Compared with individuals, profit-making enterprises adopt different tax rates according to the holding period and calculate taxes separately. Prevent individuals from conducting short-term transactions in real estate to avoid taxes by setting up profit-making enterprises.
Within the territory: Registration of nationals
【45%】Within 2 years
【35%】More than 2 years but less than 5 years
【20%】More than 5 years
Outside the territory: foreigner registration
【45%】Within 2 years
【35%】More than 2 years
The original combined tax calculation and payment was changed to separate tax calculation and combined tax payment.
The most important misunderstanding here is that in the previous version 1.0, the tax avoidance method of purchasing a house individually and then registering it as a business is no longer applicable. As long as the house is sold in a short period, it will be taxed.
3. Expand the scope of real estate taxation: curb the speculation of pre-sale houses
Incorporate "pre-sale housing transactions" and "equity transactions that actually transfer real estate" into taxation to prevent the speculation of real estate through equity transfer and avoid the income tax burden on real estate transactions.
It was not until the beginning of 2012 that the Equalization Ordinance was amended to allow the resale of pre-sold houses, which had been causing controversy. After the law was promulgated and came into effect, pre-sold houses could no longer be resold.
However, a few days later, it was announced that only those purchased after July could not be resold, which gave real estate speculators some breathing room to make profits. The government was really damned to make changes at random.
4. Set a cap on the total amount of land price increase: to prevent Du Gao from reporting land to avoid taxation
In the past, when calculating income from real estate transactions, the total amount of land price increase could be deducted. A small number of people increased the total amount of land price increase by over-reporting the present value of land transfer in order to reduce transaction income and avoid the income tax burden of 35% and 45%. .
The current change is that if the total amount of land price increase exceeds the upper limit, the part cannot be deducted, but the part exceeding the limit can be included in the calculated land value-added tax as an expense.
The declared present value of the transfer has been modified, leaving only the [present value of the land announced in the year of the transaction] - [the present value of the previous transfer], and the calculated amount is limited to the basis for tax payment.
The point is that you can no longer arbitrarily increase the price of the land you own to avoid taxes.
5. Five types of transactions will not be affected: curb speculation
Regarding the following five types of real estate transactions, in order to avoid affecting innocent people, as long as they are not used for real estate speculation, they will not be affected by the real estate and land combined tax 2.0 amendment.
For the first four transactions, the tax rate is maintained at 20 %
(1)
Transactions involving involuntary factors by individuals and for-profit enterprises.
Like being suddenly transferred to another job, or having your house forcibly executed.
(2)
Individuals and profit-making enterprises use their own land to build jointly with builders, and then share the property for real estate transactions.
Just like Mr. Wang has a piece of land, hey, hey, hey, hey, his neighbors also have a lot of land nearby, hey, hey, hey, hey, hey, hey, hey, hey, hey.
They want to renovate and get rid of the redevelopment, so they talk to the builder about how to build a better building, temporarily sell it to the builder together for redevelopment, then build it and then send it back to them for a deal.
(3)
Individuals and profit-making enterprises participate in the renovation, or the reconstruction of the elderly, and the first transfer after acquiring the real estate.
This is usually a big profit, so it’s still super cool after tax is deducted.
(4)
Profitable business builds houses after completion, first transfer.
It means that a legal person buys a piece of land to build a house and sells the first-hand house after building it.
Last transaction, maintain tax rate 10 %
(5)
If the person has held the place of residence and registered for six years or more, it is 10%, but if the taxable income is less than 4 million yuan, it is directly exempt from tax.
It is important to note here that self-occupation means pure owner-occupation. If you rent out or register a business within six years, you need to recalculate the year. Many people are stuck here and are directly charged a lot of taxes.
6. Implementation date: This is to tell you that the current system is 2.0
Starting from July 1, 2010, individuals and profit-making enterprises will be subject to the combined real estate and land tax 2.0 for transactions in real estate acquired after January 1, 2015.
The above is the "heavy tax on real estate and land" that everyone spreads rumors and scares each other. But basically, ordinary residents will not be charged this tax as long as they remember not to sell or speculate on the property, or if they do not make any money from the sale, so It’s really not as scary as I thought!
If you have been brainwashed by the new Qing’an housing loan, which seems to be super discounted, and jumped into the big fire pit of the real estate market.
After paying the mortgage for several years, I discovered that my own funds were insufficient and the money I earned could not make up for it. Then I quickly found a way to get rid of it, because as long as I did not make a profit, I would not be taxed heavily.
Don't borrow high-interest loans randomly. Trying to fill this hole will only make the hole bigger!
# Xinqing'an # Real estate # Real estate speculation # Real estate and land combined tax # Heavy tax # Big devil # Loan sharking # Credit # Self-occupied # Self-used # Individual # For-profit business # Legal person # Tax rate # Transaction # Avoidance # Tax avoidance # Builder # Joint construction # Du Geng # Dangerous old people # Houses # Land # Nationals # Foreigners # Individuals # Pre-sale houses # Profit # Interest # Percentage
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