Most purchase second-hand rooms, knowing that they are subject to taxes when dealing. But there are a lot of questions about what taxes to pay. What taxes are paid by the buyer for second-hand house transactions? Which ones are the sellers? This is in the interest of both the seller and the buyer. Here's to find out what taxes are paid by second-hand sellers and sellers。
In accordance with the laws and regulations governing the taxation of houses and the regulations governing them, the taxes and fees for the purchase and transfer of second-hand houses are divided into the following categories:
Buyer:
1 deeds: a bargain or assessed price (high) x 1. 5 per cent (3 per cent tax on commercial premises or more than 144 square metres)
2. Transaction services: building area (m2) x $3
3 trade stamp duty: the sale price or the assessed price (higher) x 0. 5 per cent
4. Transfer registration fee: $50 (plus $10 per person and $80 per buyer)。
Seller:
According to the provisional regulation on business tax, an individual transfer of housing is subject to a turnover tax of 5 per cent under the tax on “sale of immovable property”. Also, in accordance with the circular of the national tax administration directorate of the ministry of finance on the adjustment of the business tax policy on transfer of individual housing (customs no. 12), individuals who purchase housing for a period of less than five years will be subject to a full turnover tax; individuals who purchase non-ordinary housing for a period of more than five years (including five years) for a foreign sale will be subject to a turnover tax based on the difference between their income from the sale and the price of the purchase of the house; and individuals who purchase a general housing for a period of more than five years (including five years) for a foreign sale will be exempt from the turnover tax。
General housing, which is subject to preferential measures, must meet the following three conditions at the same time: housing in small areas has a construction capacity of more than 1. 0, individual housing units of less than 140 m2 or less, and real prices are less than 1. 2 times the average price of housing on the same level of land. Non-general housing which does not meet the above conditions at the same time。
Stamp duty, land value added tax
As of 1 november 2008, a stamp duty is temporarily waived for the sale or purchase of housing by individuals and a land value added tax for the sale of housing by individuals。
The transfer of second-hand rooms is subject to personal income tax. The balance after deducting the original value of the property and reasonable expenses from its transfer income is taxable, and personal income tax is paid under the “earnings from the transfer of property” item at a rate of 20 per cent. Transfer of income is the actual transaction price。
According to the circular of the general state tax administration on matters relating to the collection of personal income tax from the transfer of personal housing (no. 108 of the state tax administration), a taxpayer who is liable for the payment of personal income tax on the transfer of housing income may, on the basis of valid documents such as the original contract for the purchase of the house, an invoice etc., be permitted to deduct from the transfer income the original value of the house, the tax payments made in the transfer of the house and the related reasonable expenses. Reasonable costs are those which the taxpayer actually pays in accordance with the regulations for housing improvements, interest on housing loans, fees, notaries, etc。
If the taxpayer does not provide a complete and accurate certificate of the original value of the house and is unable to correctly calculate the original value of the house and the taxable amount, the tax may be approved at a rate of 3 per cent. An individual transfers his/her own home for more than five years and is the only home for family life, and his/her income is temporarily exempted from income tax by verification by the local tax authorities。
Additional taxes and charges
When second-hand houses are transferred, the seller shall base the tax (fee) on the amount of the turnover tax payable, which shall be applied at the following rates:
The urban maintenance tax is calculated at 7 per cent in urban areas, 5 per cent in county towns and towns, and 1 per cent in the case of municipalities, counties or towns
2. Education fee plus 3 per cent collection rate
3. Local education is subject to an additional 2 per cent collection rate; urban maintenance taxes, education surcharges, and local education attachés are taxed with turnover taxes。
