On january 24, the people's government of chongqing city issued a decision on the revision of the provisional regulations for the city of chongqing on the piloting of a housing tax reform for some individual housing units and the regulations for the administration of a housing tax for the city (hereinafter referred to as the decision)。
It is understood that the decision includes, inter alia, the following: as of 1 january 2024, the tax basis for the city's individual housing tax is adjusted from the “price of the property transaction” to “70 per cent of the value of the property transaction”。
The second is the adjustment of the three-storey rate of 0. 5 per cent, 1 per cent and 1. 2 per cent for single-commodity housing and high-end housing units between different trading price zones, to a uniform rate of 0. 5 per cent。
Thirdly, the tax-free area for families that have purchased new single-commodity housing since the pilot has been adjusted from 100 square metres to 180 square metres。
Fourth, the formula for the calculation of taxable amounts is adjusted to the following: taxable amounts = taxable building area multiplied by the unit value of the building area traded x 70 per cent x tax rate (where taxable building area is the area of the taxpayer's taxable housing less the area of taxed space)。
Fifth is the addition of a bottom clause “other cases where the municipality considers that tax relief or exemption is necessary”。
In order to help the public better understand the decision, the relevant head of the chongqing city finance bureau also cited six cases。
Example 1: taxable single-commodity housing over 180 m2
The king of chongqing holds the first home of a family with a single taxable commodity, purchased in 2018 in the new regions of the two rivers. In that year, a real estate title certificate was issued covering 200 square metres of construction at a trade price of 3. 2 million yuan, at an original rate of 0. 5 per cent. Before and after the adjustment of the policy, wang was required to pay the personal property tax on the house as follows:
Tax payable in 2024 as a result of policy adjustments:
=(200-180) x (3200000 ÷ 200) x 70% x 0. 5% = $1120
Prior to the policy adjustment, tax payable in 2023:
= (200-100) x (3200000 ÷ 200) x 0. 5% = 8,000 yuan
Example 2: taxable single-commodity housing with a construction area not exceeding 180 m2
Zhongqing citizen zhang holds the first home with a single taxable commodity, purchased in 2017 in the kowloon poe district. In that year, a real estate title certificate was issued covering 170 square metres of construction at a trade price of $3. 23 million, at an original rate of 0. 5 per cent. Before and after the policy changes, a personal property tax on the house was payable as follows:
Tax payable in 2024 after policy adjustment = 0 yuan
Prior to the policy adjustment, tax payable in 2023:
= (170-100) x (3. 23 million x 170) x 0. 5 per cent = 6650 yuan
Example 3: high taxable housing with an area exceeding 180 m2
Zhongqing citizen li holds the first taxable home of a family purchased in 2017 in the northern district of sumatra. In that year, a real estate title certificate was issued, covering 190 square metres and a trade price of $2. 85 million, at an original rate of 0. 5 per cent. Before and after the policy changes, li should pay the personal property tax on the house as follows:
Tax payable in 2024 as a result of policy adjustments:
= (190-180) x (285000 ÷190) x 70% x 0. 5% = 525 yuan
Prior to the policy adjustment, tax payable in 2023:
= (1900-100) x (285000 ÷190) x 0. 5% = 6750 yuan
Example 4: high taxable housing with a building area not exceeding 180 m2
Chongqing citizen liu xiao holds the first taxable home of a family purchased in the chu region in 2017. In that year, a real estate title card was issued for 160 square metres of construction at a trade price of 2. 4 million yuan, at an original rate of 0. 5 per cent. Before and after the policy changes, liu should pay the personal property tax on the house as follows:
Tax payable in 2024 after policy adjustment = 0 yuan
Prior to the policy adjustment, tax payable in 2023:
=(160-100) x (2. 4 million x 160) x 0. 5% = 4,500 yuan
Example 5: second and higher taxable dwellings
(resumed 4) citizen liu xing is also in possession of high-taxable housing purchased in the northern province in 2018. In that year, real estate titles were issued, with an area of 160 square metres and a trade price of 2. 56 million yuan, with an original tax rate of 0. 5 per cent. This is the second class of high-tax housing held by liu's family, which is deducted from the family's share of the taxable area, and a family can only deduct the taxable area from one set of dwellings. Before and after the policy changes, liu should pay the personal property tax on the house as follows:
Tax payable in 2024 as a result of policy adjustments:
=(160-0) x (2560,000 ÷160) x 70% x 0. 5% = $896
Prior to the policy adjustment, tax payable in 2023:
=(160-0) x (2560,000 ÷160) x 0. 5 per cent = 12,800 yuan
Example 6: in the city of chongqing, more than 2 new taxable general housing units have been purchased by individuals with no domicile, no business and no work
In chongqing city, zhao, who has no domicile, no business and no employment, holds a taxable general housing permit purchased in the south coast district in 2022. In that year, he issued a real estate permit with an area of 90 square metres and a trade price of 1. 08 million yuan; this is zhao's second common housing unit held in chongqing (as of october 2023, zhao's first common housing unit held in chongqing no longer pays a personal housing property tax). Before and after the policy changes, zhao was required to pay the personal housing tax for the second common housing unit as follows:
Tax payable in 2024 as a result of policy adjustments:
=(90-0) x (1. 8000 x 90) x 70% x 0. 5% = 3780 yuan
Prior to the policy adjustment, tax payable in 2023:
=(90-0) x (1. 8000 ÷90) x 0. 5% = $5,400
In this regard, the director of research at the chongqing branch of the institute, xiao hung, indicated that this was an improvement after september 2023, when it was made clear that the first flat of “three zeros” would no longer be subject to real estate taxes. The adjustment focused mainly on improved products, with a view to reducing the cost of buying an improved product in terms of tax criteria, tax rates and the multi-dimensional dimension of the tax exemption, thus contributing to the release of improved demand。
