What are the fees to be paid for the transfer of the gifted property?
(i) under the existing temporary vat regulations and the relevant provisions of their implementing regulations, an entity or an individual may hand over real property or a non-reimbursable gift to another unit or individual as if the taxable act had occurred. In principle, the grantee is subject to vat at a rate of 5 per cent。
1. The granting of property between close relatives and persons in relationship, as well as the granting of property in the event of inheritance or acquisition, is exempt from vat。
2. Property gifts between other persons shall be subject to vat in accordance with the law. However, vat may still be waived if the property granted by another person has reached a certain number of years and meets the conditions for exemption from vat. For example, vat may be waived if the individual is to purchase a home for five years。
(ii) the surcharge is a granter's burden and is only levied if it is subject to taxes such as vat, vat, etc., paid in proportion to the vat due (7 per cent) and fee plus (3 per cent)。
(iii) in accordance with article 1, paragraph 2, of the circular of the state tax administration on enhancing the regulation of non-remunerated gifts and real estate taxes by individuals in real estate transactions, it is made clear that: “in the case of non-reimbursable gifts by individuals and real estate, the grantee shall be taxed in full.” thus, the recipient of the property is required to pay the full amount of the tax due, which is paid at a rate of 3 per cent。
(iv) stamp duty, which is payable in full, by the contracting parties at a rate of 0. 05 per cent。
(v) under article 1 of the circular of the ministry of finance and the state tax administration on personal income tax in respect of private income taxes in respect of private non-remunerated houses, no personal income tax shall be levied on the parties in respect of the following cases:
1. The owner of the home grants property rights free of charge to spouses, parents, children, grandparents, grandchildren, grandchildren, siblings;
2. The owner of the home grants property rights free of charge to the person to whom he or she is directly dependent or dependent;
3. The death of the owner of the home and the legal acquisition of the home, the person or the bequest。
In addition to the above, gifts between other persons are subject to personal income tax in accordance with the law, at a rate of 20 per cent。
(vi) fees and household transfers require notarization before the notarial office, where the notarial certificate is released and a share of the gift is made with the former owner. The notary is required to pay the corresponding fee, usually 0. 3 per cent。
(vii) other costs are based on survey fees: 1. 36 yuan/similiary registration fees and evidentiary fees: up to $150。
Ii. Relevant legal provisions
Circular of the ministry of finance, the state tax administration department on personal income tax issues in relation to non-remunerated properties
Article 1 provides that no personal income tax shall be levied on the parties if:
(i) the owner of the home grants property rights free of charge to the spouse, parents, children, grandparents, grandparents, grandchildren, grandchildren, siblings;
(ii) the owner of the home grants the right to the property free of charge to the person to whom the maintenance or maintenance is owed;
(iii) the death of the owner of the home and of the legal heir, heir or bequest who acquired the property in accordance with the law。
The amount of income due under the grant referred to in the preceding paragraph is in accordance with the circular of the ministry of finance? General state tax administration on personal income tax in respect of non-reimbursable gifts (fiscal) [2009] article 4 provides for calculation。
It is hoped that the above-mentioned article will help you resolve the legal issues relating to the fees to be paid for the transfer. In fact, there are legal problems everywhere in life, so we should learn more about the law so that we do not know how to solve them when we encounter legal problems. After reading the above, if your questions remain unanswered, you can click the “ask now” button below to consult professional lawyers online。
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