Following the 2019 government work report that “sound the local tax system and steadily promote real estate tax legislation”, the term “real estate tax” appeared several times during the two sessions. As a new tax, the details of the specific taxation scope, taxation target, tax rate, and launch time of the real estate tax are still unknown. However, according to Wu Ritu, deputy director of the National People’s Congress Financial and Economic Committee, the real estate tax law was drafted by the National People’s Congress Standing Committee’s Budget Working Committee and the Ministry of Finance. At present, relevant departments are working hard to improve the draft law and the demonstration of important issues. When the conditions are ripe, please submit to the Standing Committee of the National People’s Congress for initial review.

Collection scope

Tracing back to history, this is the third time that the term “real estate tax” has appeared in government work reports. In 2014, the relevant statement in the government work report was “Doing a good job in real estate tax and environmental protection tax legislation”; in 2018, it was “steadily promoting real estate tax legislation”. In the eyes of the industry, the new formulation of “stable” to “steady” this year may also mean a gradual clearing of the real estate tax promotion schedule. As the current draft of the draft law is not revealed, the interpretation of real estate tax, the scope and method of taxation are not the same. Zhang Dawei, chief analyst of Zhongyuan Real Estate, told the International Finance News that real estate tax is a comprehensive concept, that is, all taxes that are directly related to the real estate economic operation process are real estate taxes, including but not limited to: corporate income tax, Personal income tax, property tax, urban land use tax, land value-added tax, deed tax, etc.Mini Electric Scooter Suppliers

CITIC Construction Investment also pointed out in its report that real estate tax involves the stage of real estate development, holding and trading. “The real estate tax introduced in the future is mainly to combine the property tax and the urban land use tax of the real estate retaining link into a new tax, replacing the two old taxes.” Academician and director of the China International Taxation Research Association Wang Weiqing told the International Finance News reporter Said.

Many analysts interviewed by the International Finance News believe that the future real estate tax will include personal housing. “The introduction of real estate tax is also to improve the real estate tax structure. At this stage, the personal housing is exempt from property tax (except Shanghai and Chongqing) and urban land use tax.” Yang Hongxu added. In fact, the prelude to real estate tax has already begun. Specifically, the object of Shanghai’s collection is the newly purchased house in Shanghai from the date of the implementation of the Interim Measures, and the second and above houses belonging to the household and the non-Shanghai residents’ families newly purchased in Shanghai, while the Chongqing area At that time, the object of collection was a single-family villa, a high-end apartment, and an ordinary house with a second house purchased by a person who has no household registration, no business, or no job in Chongqing.