The Research On China Residential Real Estate Tax

On Feb20th2013, during the executive meeting, Chinese State Department confirms five measures to enhance adjusting and controlling internal Real estate market, which is called National5Policies. This is the5th time to adjust and control the market since Jan2010, which makes many focuses a discussions. Realty business has always played an important role in the national economy and social development. It is the basic and supporting of national economy and has relationships with other businesses. However, a well-running Real estate market needs an efficient and self-contained tax system, which can fit close with the internal market and have the national economic policy to influence the market. At the present time, most tax categories of Chinese real estate tax system cannot well fit with the development of realty business. The main problem is that the current tax system is aiming at the real estate trading, such as the newly publicized National5Policies prescribes that the second hand house trading will be collected20%balance tax but it has nothing relating with retain tax.In2003, the3rd Session of the16th Central Committee of the Party put forth that it is necessary to collect property tax (Real estate tax) when the condition is ready. However, it has not been carried out and Real estate tax becomes the center of the debate between the theorists and the practice departments. The national Twelfth Five-Year Plan mentions that according to the principles of optimizing tax system structure, fairing tax burden, Standardizing the distribution relationship and improving the tax power allocation, Real estate tax reform will be carried out, regular local tax system will be established and local government will have more tax administration authorities. The financial institute director of finance ministry has also mentioned that during the national Twelfth Five-Year Plan, Chinese local tax system need to seize the opportunity and be founded as quickly as possible. In the future, the Real estate tax will become one of the biggest supporting and it has already been tested in Shang Hai and Chong Qing. So Real estate tax will become the center of the discussion during the national Twelfth Five-Year Plan.Reference and analyzing the residential Real estate tax experience of developed countries; Residential Real estate tax has become the primary source of the local financial. Meanwhile, it can standard the development of Real estate market, control the housing price not to rise too fast, adjust the social income distribution gap, improve local financial system and tax system, guide the right housing consumption and change local public service support capacity. All these function have been proved in many countries’practices. So it is very urgent to establish Chinese Real estate taxBy consulting and analyzing related scholastic works, this article focuses on the main problems caused by the real residential estate tax in house having and holding, such as tax collection for the residents and the land, tax collection by assessed valuation value. It also studies these problems from Chinese objective reality and raises particular reform design. In this article, you can find the principle of founding well-developing tax system; also you can find the demand of tax adjusting social economic action. It has very important meaning for both theory and practice.There are4parts in the article, describing residential real estate tax theory, the objective reality problem for collecting real residential estate tax, and the structure design for the real residential estate tax and so on. The first part is the introduction part. It mainly introduces the background and significance of the thesis, the origin of the real estate tax, related concept, the research situation inside country and abroad, the aim of the research, research method, writing framework as well as innovative and deficiencies. Especially compare the similarities and differences between the benefit theory and new theory. And make the research is clearly for the problem about our real residential estate tax and related problems. It emphasizes the important theory and practical meaning to study real estate tax and presentation the structure of the article. The second part is the necessities for our residential real estate tax analysis. Start from residential housing system changes history, and the corresponding changes in the tax system, from raising local financial revenue, adjust the income gap to achieve social justice, optimize the allocation of real estate resources, promoting local governments to improve public service capacity, and promote the healthy development of the real estate market, discussed in terms of the necessities of residential real estate tax, the last of is the main problems of the current real estate tax related system. The third part is the feasibility analysis of the residential real estate tax levied. From several angles of the economic, technical, social, the implementation of the feasibility of taxation, that our national and collective land real estate tax obstacles, it is technically possible to follow the example of foreign assessed value tax basis to impose real estate tax. The same time, from the angle of social equity investigated the feasibility of taxation, the correlation analysis of the relationship between household income and housing values, residential housing in the form of property rights and housing values and household income, respectively, from the fairness of the tax the recommendations of the analysis of the feasibility of the specific implementation of the levy real estate tax of residents. Be involved in the implementation of the tax burden in households, the2011middle-income family’s income and the value of real estate analysis, estimates of30years for each tax burden corresponding to the real estate tax rate It turns out that standard housing for middle-income families,70%of the appraised value as the tax base, the tax burden within the range of2.5%to5%conversion rate range of0.22%-0.43%, are big international within the scope of the conversion rate in most countries. The fourth part is the design of the system for the levy of residential real estate tax on the object of taxation, taxpayers, tax basis, tax rates, preferential policies and supporting measures are discussed in detail that taxation should be targeted at the real estate and residents of rural areas stock of real estate during the tax rate is set when the proposed two stages, gradually increase the tax rate in household living standards and a correct understanding of the’real estate tax; tax pursuant to the proposed use of the appraised value of the market approach calculate the value of real estate and calculated according to the housing area and the appraised value of the tax relief to the residents; concluded that the residential real estate tax need to improve the property registration system, establish the basic conditions of the real estate value assessment system, and adjust the tax system. The fourth part is a summary of the previous.The innovation of this article is the following points:1. By using tax theory, it discusses the rationality and practicability of real estate tax collection in theory. By overcoming the apprehension to land ownership and merging house property and land property, and collecting tax together, it is propitious to improve the relating house tax system.2. To keep the house price not to rise too fast, to promote realty industry to well develop and to guide the resident to consume reasonability. At the same time, it is propitious to improve local financial system, to encourage local government to increase the investment in public service. In Beijing, for example by the household income and the value of real estate, housing in the form of property rights and household income, the correlation analysis between the value of real estate to discuss the feasibility of collection of residential real estate tax on residential real estate tax impact on the burden of the family three decades of estimates and estimates a tax rate in line with the principle of taxation can be accepted by residents.3. Based on the research and analysis of Chinese residential real estate tax’s history and abroad tax collection experience, it designs tax system framework according to national condition. It provides practical guidance for Chinese real estate tax collection and offers reference for related department to make policy. Certainly, this article still has some shortcomings as the following:1. For the result inspection, due to the test points establish too short, it is very hard to collect tax data and it is impossible to get more real data to analyze the influence of the tax collection to local financial incomes, house price and residents purchase tendency.2. It is ambiguous on framework design of real estate tax system. Many of the measures are not clear and need to be amended.Real estate tax collection is the demand of Chinese market economy. It is also the inner requirement of Chinese social and economic development. It has very important meanings to research real estate tax for Chinese real estate market, Chinese social and economic development, adjusting market structure and modifying local financial system. I hope the theory analysis to real estate tax; the problem solving and the practical design can push forward the establishment and collection of Chinese real estate tax and offer some references.