The Research On The Tax Base Of Property Tax In China

There is more people advocate to promote the speed of property tax legislation in recent years.Premier Li Keqiang mentioned in the "Government Work Report" of 2018 and 2019 that China needs to steadily advance the process of property tax legislation.How to establish and to operate the tax system had become a hot topic in China.Therefore,this article mainly analyzes tax base of property tax through researching the basic national conditions of China and related taxation theories.At present,the property tax implemented in China just levied on the houses which are used in business like renting or commercial operations among the urban areas.The tax usually used the original value of house and the income of renting real estate in one year.In the pilot project of property tax reform in Shanghai and Chongqing in 2011,Shanghai was converted to use trading price of real estate.The personal housing property tax in Chongqing is taxed on the area of the house minus the tax-free area and multiplied by the transaction price per unit area.Although China has continuously reformed the property tax system,there are still many problems in the current situations.China urgently needs to reconstruct the system on real estate and to a certain extent property tax can provide a stable economical source for local finance.For this reason,we need to research on how to design the tax base of property tax.The first part mainly describes the background and significance of this paper.It also explains the research purpose,research methods and innovation points.The second part is the theoretical analysis of property tax.Firstly,after briefly describing the concepts of property tax,it analyzes the legislative objectives and the taxation principles of property tax that should be abided by.Then it summarizes the opinions of different scholars on the property tax and its tax base.The third chapter mainly shows the different types of property tax base in different areas,and gains the relevant experiences in how to establish property tax system in China.The fourth part is to compare the advantages and disadvantages of different types of taxation base.Firstly,the article chooses the tax fairness,income growth,management efficiency,and public recognition as the indexes to test the tax base.They are set with different weights according to their importance and feasibility,and then the performances of the three kinds of tax base whose are annual rent value,real estate size and evaluated market value are quantified under four indexes to get a comprehensive score.The final result is the annual rent value is the best tax base of China's property tax.Except those,the last part is the suggestions on the establishment or improvement of various supporting facilities such as the evaluation method on tax base,how to better the related system and how to build a professional team.