Study On The Existing Questions In Chinese Housing Tax Laws And Regulations

From the late1980s, China has started the implementation of the housing system reform.With the termination of the welfare-oriented public housing distribution system, individualhousing transactions in China has become increasingly frequent, besides the personal housingmarket prospered gradually. While a lot of people buying favorite housing as their residences,"real estate speculation" has become a new kind of investment behavior. Individual housingtransactions developed rapidly with the real estate industry’s enormous profits, therefore, a lotof people engaged in the real estate market, and even many private real estate organizationsemerged correspondingly. Some people who did not need houses buy and sell housesconstantly for huge profits; however, people who have genuine need of housing can’t affordhousing. The housing buyer’s purchase purpose is not to live in, but to earn higher price inhuge increasing profit margins, which adds the originally consumption behavior solved thepeople living needs with commercial color. Real estate speculation behavior pushes up thehouse prices and prospers China’s real estate market demand foam-likely; increasing the costand the risk of individual housing transactions. The confusion phenomenon in this market notonly increases the difficulty degree to the supervision and regulation of the national real estatemarket but also exposes the defects in the legal systems of individual housing transactions inChina fully.Before the housing system reform, China having implemented the welfare-orientedpublic housing distribution system for a long-term makes the legal system imperfect. In orderto protect the normal housing needs of the urban residents in China’s urban residents andtenants’ rights and to eliminate the illegal behavior in individual housing transactions to bid upprices, China has taken a large number of measures, for instances, control of land use and realestate credit; guide the housing price and implement the transaction price reporting system.etc, including regulates the real estate market by means of taxation and enacts a number ofprovisions and notices to control prices. In the beginning of2012, the government carried outthe property tax policy in Shanghai, Chongqing as pilot cities. More and more scholars divert attention to the legal systems of individual housing transactions and the theoretical researchon specific issues such as housing transaction tax. This article makes instructions,argumentations and demonstrations on various taxes paid on housing transactions. Besides,the author not only analysis and research the two pilot property taxes in Shanghai andChongqing but also propose personal recommendations for the benefit of the healthydevelopment of China’s housing transactions.The thesis is divided into three parts, about30,000words.The First Part. Summary on the individual housing transaction tax system. Individualhousing is a shelter for people to learn, entertainment, live in or storage. Individual housingtransactions have five modes as sold, leased, inheritance, gift, and exchange. The governmentcollects individual housing transaction taxes can play roles in three functions as macro-control,guide consumption and market supervision. Turnover tax in the individual housingtransactions includes the land value-added tax, business tax and business tax additional.Income tax includes corporate income tax, personal income tax; property taxes: property taxes,deed; Specific behaviors taxes: stamp tax.The Second Part. Related taxes and legal issues on individual housing transactions andits have five modes: sold leased, inheritance, gift, and exchange. Individual housing tradingincludes trading of commodity housing and second-hand housing transactions. In trading ofcommodity housing process, the seller should contribute payable taxes mainly as the businesstax and surcharges, corporate income tax, stamp tax and land value-added tax.Correspondingly, the buyer pays the tax on deed. In second-hand housing transactions, theseller must afford business tax and surcharges, personal income tax, and the buyer pays thetax on deed. In personal rental housing, people should pay property tax, business tax andadditional personal income tax; in individual housing inheritance transfer registration, peopleare required to pay stamp tax. And if he is non-legal heirs according to intestate succession,he needs to pay the deed tax; When he presented houses to others, he has to hand in businesstax and its additional and stamp duty, the donee should pay personal income tax, deed tax andstamp tax; In exchange of individual housing, he is required to pay stamp tax, if the exchange price is equal, no need to pay for the tax on deed, if not, the people who deliver currency moreis to pay the deed tax, business tax and surcharges and personal income tax.The Third Part. Static holding tax and legal issues affecting individual housingtransaction costs. The so-called static holding tax is a property tax. Shanghai and Chongqingboth collect tax according to the individual housing transactions. Relatively speaking,Shanghai only taxes on newly purchased house, not on the stock of housing, implementing ofdifferentiated proportional tax; Chongqing only taxes on high-end residential, villas and otherstock of housing tax, for ordinary housing, only the increment shelter tax. The governmentlaunching the real estate tax makes the tax law system of our country perfect, which is goodfor the entire real estate structure adjustment control. It has impacts in regulating incomedistribution, guiding the market and changing housing consumption habits. But real estate taxhas various malpractices in legislation, the impact on real estate prices and the tax on the basisof assessment fields. Therefore, it put forward proposal to perfect legislation, expand theproperty tax ranges, the implementation of targeted policies to strengthen the restraintmechanism and determination the real estate assessment tax basis.With distinctive theme, strict structure, trenchant arrangement, criterion language, richmaterial, this paper researches hot issues of society using good comprehensive of the theoriesand the professional knowledge. The author makes instructions, argumentations anddemonstrations on individual housing taxes and related legal system on daily ordinary lives ofpeople. From the promotion of China’s real estate market healthy development andimprovement of individual housing transaction tax legal system angle, the author puts forwardreasonable suggestions, correctly reflecting the party and state’s policies.