Study On Tax System Of China Real Estate

In recent years, with the rapid development of the real estate industry, it has been a highlight of the country. The real estate industry also has become one of the pillar industries in the country. Meanwhile, the real estate industry has been one of the most important sources of local taxation. But, many problems have gradually been revealed, such as high house prices, real estate speculation. Besides, local finance relies too much heavily on real estate industries. As the main method of modulate the economy, taxation should play its important role on the real estate industry’s healthy development.Since the tax system reform in1994, tax system related to real estate has not been a big adjustment. It has significantly lagged behind the development of the real estate industry. In this paper, I suggest ideas and measures to reform the tax system in China’s real estate using correlative theories and foreign successful experiences for reference.This paper is divided into the following sections:The first part:we introduce the concept related to the real estate industry, the characteristics of the real estate industry and its important role in the national economy. The second part:we describe the two basic theories of real estate taxes, public economics and land economics which set up the theoretical basis for follow-up study. The third part:we describe the details of the development, the reform process and the current situation of the real estate tax system in china. The fourth part:we analyze the details of the problems in real estate tax system, such as taxes chaos, complex fees and problems in tax collection. We also detailed analyze the existing problems of the kinds of tax in real estate. Then, we put forward the objectives and requirements in order to reform and improve the property tax system. Part Ⅴ:we introduce the tax system of the foreign real estate. First of all, we introduce by type. Then, we describes its influence on Chinese tax reform on the real estate industry. Part Ⅵ:we suggest the basic principles of China’s real estate tax system for reforming: fairness and efficacy, expansion of tax base, simplifying the taxation system, optimization of real estate tax structure, reasonably clear fees and amend taxes and reform the charging system of administration fees. At last, we suggest the principles to reform the taxation system in Chinese real estate sector from the following four parts:the owning procedure, the getting procedure, the income procedure and the other parts.