Friends: hello! Your questions have been received and the following is the answer: according to your description, when you have five years of trading in a house over 90 m2, which is not the sole home of the family, the transaction involves the following taxes: the above policy applies to areas outside beijing, shanghai, guangzhou and shenzhen. 1. The personal income tax law of the people's republic of china and its implementing regulations provide that an individual who transfers a dwelling, with the amount of his or her transferred income less the original value of the property and the balance of reasonable expenses, shall be the amount of taxable income and shall pay 20 per cent of the personal income tax in accordance with the item “property transferred”. Taxpayers may, on the basis of valid documents such as the original purchase contract, invoices and subject to review by the tax authorities, permit the deduction of the original value of the house from their transfer income, the amount of taxes paid during the transfer of the house and the related reasonable expenses. 2. According to the circular of the general state tax administration on matters relating to the collection of personal income tax on the transfer of personal housing (state tax) [2006] article 3 provides that: “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 amount due, the tax authorities may impose an authorized tax on the taxpayer in accordance with article 35 of the law of the people's republic of china on the administration of tax collection, i. E. The amount of personal income tax payable in proportion to the income transferred from the taxpayer's housing. According to the circular of the ministry of finance, the state tax administration, the ministry of housing, urban and rural construction, on the adjustment of the tax on transactions in real estate, the revenue tax incentives (customs 2016) (b) regulation no. 23: (i) taxes are levied on individuals who purchase the sole home of the family (family members include the purchaser, spouse and minor children, the same amount) for an area above 90 square metres, less the rate of 1. 5 per cent. (ii) taxes reduced by 2 per cent for the purchase by individuals of a second set of improved housing units for families over 90 square metres. (iii) a third home is purchased by an individual at a tax rate of 3 per cent. Thank you for your interest and support in our work! If there is any lack of clarity, please contact the tax office of the city of sanan, tel. 0564-3342636, and the tax service at the real property sub-centre of the city of six, tel. 0564-3950277. State tax administration, san city tax administration, 29 april 2022
