On China’s Real Estate Tax System

With China’s rapid economic growth in the past decades, the real estate markethas dramatically developed, especially from the housing system reform in1998. Thestatus of real estate economy has consistently arisen in the market economy, whichgradually excels other industries and becomes one of the leading industries in China.The taxation revenue from the real estate industry is a major factor contributing to thefiscal revenue due to the drastic increment in its market. The tax reform between localand central government in the early1990s has become an essential cut off point.These past ten years have witnessed a consistent improvement in our real estatetaxation system, which symbolizes socialist market economy.As the real estate market is very complex and uncertain, so our governmentneeds to regulate the real estate market order and urge strict implementation of realestate taxes so that our fiscal revenue and national economy will steadily increase anddevelop respectively. This paper mainly introduces our real estate taxation history,structure, current situation. By comparing with American and British real estatetaxation system, this paper discusses the disadvantages of Chinese current real estatetaxation system based on our economy. By that way, we can increase our real estatetaxation system efficiency and effectiveness, then meets the social developmentrequirement and starts a healthy real estate market development cycle.The paper consists5parts. Part I is introduction, which covers the briefdescription of Chinese economic trends and the basic concept of the real estaterelevant terms and theory. Part2describes the history, contents and the importance ofour real estate taxation system. Part3compares American and British taxationsystems and highlights the advantages. Part4detects the limitations of our real estatetaxation system. Part5proposes the better plan for our real estate taxation system tosolve the existing problems.