What is the impact of the adjustment of the transaction tax on home buyers
Chongqing business journal, official account no. 2024. 11. 1500:26
In recent days, the ministry of finance, the general tax administration and the ministry of housing, urban and rural construction have issued a bulletin on tax policy for the smooth and healthy development of the real estate market, and the general tax administration has issued a bulletin on lowering the lower rate of advance tax on land, which was implemented since 1 december 2024。
“the emergence of a series of policies reflects not only the refinement and flexibility of government regulation of the real estate market, but also the determination to regulate markets and stabilize expectations through tax policy.” lee xuhong, vice-president of the beijing national school of accounting, said。
What is the content of this new policy on taxation of housing transactions? What will be the impact on buyers
Increased tax incentives to support residents ' rigid and improved housing needs
In accordance with the relevant bulletin, the new deal has increased tax incentives on the transaction of housing, and has actively supported the development of demand for affordable housing. To raise the current size rate of the 1 per cent low tax rate from 90 square metres to 140 square metres, and to clarify that beijing, shanghai, guangzhou and shenzhen could apply the second family housing tax credit policy in a uniform manner with the rest of the country, i. E., that, after adjustment, they would pay the tax rate of 1 per cent for the purchase of a family's sole home and a family's second home, provided that the area does not exceed 140 square metres。
“the real estate chain, and in particular the second-hand housing transaction, is mainly related to deed and value-added tax (vat), which will increase the size rate of the 1 per cent low tax premium to 140 square metres, and will reduce the tax cost of the transaction by adjusting the tax rate of the beijing, shanghai, guangzhou, shenzhen 2 flats to 1 per cent and more than 2 per cent within 140 square metres. For example, the purchaser of a 100 square metre second flat in beijing, at a total cost of $5 million, compared to 3 per cent in the past, or $150,000, will receive 1 per cent, or $50,000, of the new policy。
It was explained that, if a taxpayer applied for tax benefits, he should submit to the competent tax authorities a family member information certificate and a written search of the taxpayer's home by the real estate administration in the place where the house was purchased. In order to increase the number of taxpayers benefiting from the policy dividend, tax dues are payable on individual housing purchases after 1 december 2024, as well as on the purchase of housing before 1 december 2024 but the declaration of tax due after 1 december 2024, which is subject to the new public notice。
Currently, our tax preference policy distinguishes between ordinary and non-ordinary dwellings, with corresponding standards in some places. The new deal clearly sets out the value-added tax (vat) and land value-added tax (vat) preferences that are linked to the elimination of ordinary and non-ordinary residential standards。
In particular, following the cancellation of the general and non-general residential standards in the municipality concerned, the value-added tax (vat) was waived for the purchase of housing for a period of more than two years (including two years) for personal sales, and the provision that vat (including two years) had been imposed on private sales for more than two years (including two years) in beijing, shanghai, guangzhou and shenzhen was suspended。
According to zhang, the policy aims to encourage consumption and, in particular, to encourage improved replacement by residents of existing houses. For example, a 160 square metre second-hand house in beijing, although it had been in possession for more than two years, was subject to differential value added tax because it was a non-ordinary dwelling. If, however, the distinction between ordinary and non-ordinary dwellings is eliminated, then the tax fee will be saved。
“these policies help to simplify the tax system, reduce the tax burden and compliance costs on enterprises and individuals, thereby stimulating market dynamism and promoting a balance between supply and demand in the real estate market.” lee xuhong said。
Lower floor of 0. 5 percentage points of advance tax on land value added tax (vat) to alleviate the financial difficulties of housing enterprises
Land value added tax is required for land development by real estate enterprises. In 2010, in order to better perform the role of pre-regulating land value-added tax (vat) tax, the directorate-general of taxes issued a circular on strengthening the administration of land value-added tax (vat), which established a lower rate of pre-collection, with the exception of secure housing, at 2 per cent in the eastern provinces, 1. 5 per cent in the central and north-eastern provinces and 1 per cent in the western provinces. At present, with changes in the real estate market situation, the level of value added for different real estate projects is structurally differentiated, and in some cases the rate of value added for real estate items has fallen significantly. It is necessary to adjust the lower limit of the forecast rate in order to provide space for the scientific adjustment of the rates and to promote the smooth and healthy development of the real estate market。
This time, the general tax administration announced a reduction of 0. 5 percentage points in the minimum pre-recruitment rate, which is 1. 5 per cent in the eastern provinces, 1 per cent in the central and north-eastern provinces and 0. 5 per cent in the western provinces, with the exception of secure housing. Moreover, local authorities may adjust the actual rates of advance collection to local realities, which need to be adjusted by establishing specific rates for each type of real estate on the basis of scientific estimates, in conjunction with local government guidance from the local tax authorities, taking into account, inter alia, the actual tax levels of local real estate projects。
Previously, there was a distinction between ordinary and non-ordinary dwellings in respect of land value-added tax benefits. The new deal explicitly abolished ordinary and non-ordinary housing standards in cities and continued to implement the land value-added tax (vat) waiver policy for the construction of general standard housing for taxpayers whose sales value does not exceed 20 per cent of the project amount。
In his view, the above-mentioned policy adjustments have helped to ease the financial pressure on real estate enterprises and support the promotion of the real estate sector。
Increased facilities for taxpayers to benefit from relevant preferential policies
The head of the relevant department of the general tax administration stated that, in order to ensure that taxpayers benefit from the tax incentives in a timely manner, the tax administration will take a series of measures with the relevant authorities to continuously optimize the tax service and increase the taxpayer's satisfaction and access。
Further enhance the effectiveness of window services. Local tax administrations will further optimize the offline window set-up and online operation, based on the “one-window” model of real estate tax processing, and provide a “one-stop shop” for the purchasers of their homes with taxes and certificates for “one-off”. In addition, tax authorities will provide tax services to those in need, depending on demand, through additional windows and extended tax processing times。
Further optimization of information delivery. :: continue to increase collaborative information-sharing in the sector, using shared information to prefill data and reduce the burden on taxpayers to provide and fill in information. In cases where information-sharing conditions are not available and the taxpayer is unable to submit the relevant documentation, the taxpayer may choose to apply the notification promise system in accordance with the current provisions。
Further strengthening of policy advocacy and interpretation. Local tax administrations, in conjunction with the relevant departments, will provide taxpayers with professional policy content interpretation and tax process counselling services through the tax service office's tax counsellors and the 12366 tax service hotline to respond quickly to taxpayers' concerns and ensure orderly tax administration。
Lee said that the “one-stop” tax service, the pre-filling of data using shared information, the ease of the tax process and the optimization of tax services would facilitate the timely access of taxpayers to the dividends of tax incentives。
Relevant
Some cities, new mortgage rates, go back to "3"
Since october, when the lpr (lending market quote rate) fell by 25 basis points, the mortgage rate in some cities has moved to the “2” level. In recent days, cities have been participating in the return of interest rates on mortgages, including in guangzhou, hangzhou, nanjing and suzhou. Journalists have learned from several banks in the above-mentioned cities that the interest rate for new mortgages is currently 3 per cent。
On 6 november, guangdong published a communication indicating that, as of 7 november, the main commercial banks in guangzhou region had either unified or adjusted their interest rates on housing loans at a minimum of 3 per cent。
On 7 november, journalists learned from a number of bank mortgage managers in guangzhou that the interest rate for new mortgages had now been increased to 3 per cent. For example, the housing manager of a guangzhou branch told journalists that the bank had been informed that the “new mortgage rate must not be less than 3 per cent” and that the new mortgage rate would be 3 per cent effective 7 november。
With the exception of guangzhou, which has sent a letter confirming that the interest rate for new mortgages should not be lower than 3 per cent, several banks in nanjing and suzhou have confirmed recently that the interest rate for new mortgages has been implemented at 3 per cent。
According to wang qing, the chief macroanalyst of oriental kincheng, the increase in interest rates for new housing loans in this part of the city was the most important reason for avoiding a reversal of the interest rates for commercial mortgages and public capitalization loans。
The vice-president of the shanghai institute of emigrant real estates has made a drastic leap forward, indicating that the increase in the interest rate for the new mortgage in guangzhou to 3 per cent will be maintained at this level for a longer period of time and that there may be no subsequent upward adjustments. In general, mortgage rates will remain low。
“the interest rate on new mortgages must not be less than 3 per cent, meaning that there is still room for a downward adjustment in the interest rate on provident fund loans.” it refers to chen weng jing, director of policy studies of the institute, who indicated that there was room for downward adjustments in policy trends in the share of down payment of provident fund loans and interest rates on loans。
According to the people's daily news, the union, etc
