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What has changed for tax filing after the issuance of Deed Tax Law?
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A:
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The “Deed Tax Law” simplifies tax filing procedure by combining the tax declaration and tax payment into a single part. "Provisional Regulations on Deed Tax of the People's Republic of China" (hereinafter referred to as the "Regulations") stipulates that tax payers shall complete tax declaration within 10 days since they incurred tax obligation and pay deed tax within the declaration period required by local levying authorities of which land and houses are located. The “Deed Tax Law” changed the tax declaration regulation to “deed tax shall be declared and paid before register the ownership of land and houses.”
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Is there any change for the deed tax rate?
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Both the Regulation and the Deed Tax Law stipulate that deed tax adopts a flat rate within the range of 3%-5%, therefore, the deed tax rate has no change. The Deed Tax Law authorizes the governments of provinces, autonomous regions and municipalities to determine differential tax rates directly for different entities, regions and types of house ownership transfers.
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Does the tax base of Deed Tax include Value Added Tax?
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According to the “Notice on Tax Base Issues of Deed Tax, Property Tax, Land Increment Tax and Individual Income Tax after Business Tax Replaced by Value Added Tax” ([Caishui 2016] No.43), Article 1, the deed tax base of transaction price excludes value added tax.
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If the company pays deed tax for purchasing a house, but return it later, is it able to apply for the tax refund?
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According to the “Notice on Deed Tax Related Issues of Purchasers Returned Houses of The Ministry of Finance and State Administration of Taxation” (Caishui[2011] No.32), the companies and persons who have paid deed tax can apply for the tax refund, if they return the house before transfer the ownership of the house. If they transferred the ownership of the house before returning house, they won’t be able to apply for the tax refund.
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What are the preferential policies of the Deed Tax Law?
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The Deed Tax Law stipulates that the couples who change the ownership of land and house during their marriaging period , and legal heirs inherit the ownership of land and house, the deed tax can be exempted.
The Deed Tax exemption can be granted on the land and houses occupied by the non-for-profit school, medical institutions and social welfare organizations for the use of offices, lecturing, medical treatment, scientific research, pensions and succour.
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