Study Of Countermeasures For Improving The Real Estate Tax System Of China

The real estate tax system of China was established and gradually evolved with the development of the real estate market in the eighties of the last century. With the further development of China's market economy, the existing system has not well adapted to the needs of real estate industry development, as well as the shortcomings and drawbacks of the major taxation categories have been surfacing, which to a large extent hamper the further development of the real estate industry of our country. Therefore,It is of great urgency to reform and improve current legal system of the real estate tax. The essay summarizes and analyzes potential problems of the current system through expounding the theory of real estate tax system and poses specific suggestions and measures in light of experiences from other countries with comparatively more mature real estate tax systems. The essay contains five major parts, outlined as follows:Chapter 1: Overview of the real estate tax system. Firstly, this chapter expounds briefly the basic concepts of the real estate tax and legal system of the real estate tax as well as a few formalities of compound real estate tax system: acquisition of real estate, tenancy of real estate, tax system of real estate transfer, to provide the background of system and theory for subsequent discussions. Secondly,. the chapter introduces the basic type of setting taxation categories of the real estate tax system of China, which, in the light of nature and function,is categorized into turnover tax, and property behaviour tax, to lay a solid foundation for analysis of the system defect of real estate tax of China and for study of Countermeasures in latter chapter hereof.Chapter2: Theoretical analysis of the real estate tax system. Firstly, the rationale of real estate taxation is analyzed and discussed by neutral doctrine and non-neutral doctrine to reach a conclusion that theoretical basis of the real estate tax has the features of diversity and dynamism; Secondly, the real estate taxation principles and alternatives are discussed revolving about principles of efficiency, fairness, stability and neutrality. Lastly, by application of theory of economics, the essay reveals the significance of real estate taxation in serving as an important means of the state intervening in the economy as well as its important role in realizing social equality and regulating well operating of the real estate market.Chapter3: The problems of current real estate tax system of China. This chapter begins by analyzing the structural defects of the tax system, and then, further dissects the defects of substantional law of real estate tax, still, looks for and analyzes the problems in the tax levying process. Finally, based on the analysis aforesaid, the author casts light on the problems in the current real estate tax system that interrupt regulating of real estate market.Chapter 4: Inspiration and lessons from foreign real estate tax systems. Mature foreign real estate markets are characterized by "emphasis on tenancy", "less categories, wider basis, lower rate", clear arrangement of tax category, and well-established regulation of tax basis,and so forth, which are refined to further generalize the fundamental experiences in the establishment of foreign real estate tax system in the hope of providing beneficial guidance for the improvement and refinement of China's real estate tax system.Chapter 5: Research on Countermeasures to improve the real estate tax system of China. This chapter is an essential part of the essay. To start with, the goals and trains of thought of the reform towards the current real estate tax system are posed: including such goals as optimizing taxation structure, strengthening its functions, scaling up, simplifying the system and such trains of thought as "Justifying taxation, Clarifying rent, and Cutting fees", optimizing tax category and achieving proper separation of power between central and local governments. Moreover, given the defects of current real estate tax system of China, the author suggests, in light of successful experiences from foreign countries and regions, in accordance with the basic thoughts of real estate tax system reform aforesaid, to arrange and improve the current real estate tax category: to abolish parts of tax categories, to reform land VAT and establish new kinds of tax categories. The author especially emphasizes on discussing the basic framework and its operation of real estate tenancy tax ,namely ,the property tax . Then , to explore administrative and levying approaches to strengthen and improve the levying regilation and insure the validity of the tax system. Lastly, setting up related supporting systems such as regulating levy fees of real estate , strengthening property right register system, deepening administration and reform of city land and houses is put forward to get rid of non-taxation obstacle of real estate tax system,...