Following last year’s 325 “Shanghai Nine Articles” and 1128 loan restriction upgrades, Shanghai’s housing purchase and loan restriction policies are the most stringent in the country. Many home buyers are optimistic about real estate or are in urgent need of housing, but due to purchase restrictions, they have to think of "saving the country through curves", such as buying a house in the name of a company.

However, buying a house in the name of a company is not as beautiful as it seems. Sohu Focus editor learned from the tax department, second-hand housing agents, senior real estate lawyers, etc. that buying and selling real estate in the name of a company has high transaction costs and high risks. Some methods that seem to be able to avoid taxes are very troublesome in practice. .

High initial investment cost:

One-time payment, deed tax is 3% in total

For many foreign investors who want to "save the country", using a company Although buying a house in name can circumvent the purchase restriction policy, most banks' mortgage loan business is only for individual house buyers, and companies need to make a one-time payment to purchase real estate, which means that the initial investment cost is very high. A mortgage loan cannot be obtained until the property ownership certificate is obtained.

Moreover, regardless of whether it is non-residential, ordinary residential or non-ordinary residential, as long as the house is purchased in the name of a company, the deed tax must be paid at 3% of the house price, and does not enjoy the halved tax rate; in addition, it is necessary to pay 0.05% stamp duty. According to the concise table of real estate transaction taxes and fees printed by the Hangzhou Municipal Local Taxation Department in May this year, when purchasing commercial housing, the tax rates are different for individual house buyers and unit buyers, as follows:

Real estate holding costs Gao:

Real estate tax must be paid every year

Although there has been much discussion about the need to fully levy property tax on properties held by individuals in the future, including the official launch of the levy by the Shanghai Local Taxation Bureau two days ago. Issues related to the personal housing property tax in 2016 have triggered a wave of heated discussions, but so far, this policy is still limited to a few regions across the country. Zhejiang has not yet levied property tax on individuals.

However, according to the "Interim Regulations of the People's Republic of China and the State on Property Tax" promulgated in 1986, property tax under the name of the company must be paid every year. The specific tax is: the original value of the property per year ×70%×1.2%. In the specific operation process, different regions may have property tax exemptions for three years for enterprises of different natures (such as high-tech enterprises, poverty alleviation units, etc.).

In addition, there are many tax items that a company needs to pay when purchasing a house, and the calculation is more complicated. It is best for house buyers to consult the relevant tax authorities for detailed information on the specific tax amount.

There is a lot of information to prepare for the procedure:

A shareholder meeting resolution is required

To purchase a house in the name of a company, you must prepare more information than when purchasing a house by an individual. The relevant staff of Centaline Real Estate made a basic list: a copy of the business license, a copy of the tax registration certificate, a copy of the organization code, the official seal, a copy of the legal representative’s ID card, the shareholders’ meeting resolution, etc.

Individuals purchasing real estate in the name of a company:

You also need to meet the purchase conditions

According to the "Nine Shanghai Articles" new regulations: Commercial housing purchased by an enterprise must be listed for trading again. For three years or more, if the transaction object is an individual, the city’s purchase restriction policy will be followed.

Reselling real estate under the company’s name at the original price:

Can you avoid high taxes?

Currently, the local tax department mainly levies the following levies on individual sellers selling residential real estate:

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1. Value-added tax and surcharges. Among them, it is exempted for more than 2 years (inclusive), and is levied at 5.6% of tax-exclusive income for less than 2 years;

2. Personal income tax. Among them, the transfer of the family's only home is exempt from personal income tax; if it is not the family's only home, personal income tax is levied at (transfer income - original value of the house - reasonable expenses - taxes paid during the transfer) × 20%, or based on the house transfer income 1% approved personal income tax.

In contrast, for the sale of real estate under the company's name, you need to pay during the transaction process:

1. Value-added tax and surcharges. It is levied at (tax-excluding income - original purchase price ex-tax) × 5.6%;

2. Land value-added tax. It is levied at a progressive tax rate of (transfer income - amount of deduction items) × four-level super rate; or it is levied by the tax authorities at a rate of 5% of the transaction price;

3. Stamp tax. It is levied at the transaction price × 0.05%.

In addition, corporate income tax must be paid when reselling real estate under the company's name. Currently, it is generally levied at the rate of transfer income × 25%.

Corporate income tax is usually prepaid quarterly and settled at the end of the year.

Someone discovered that - comparing the two, if you sell a property under your company's name at the original price of the house, you can avoid high business tax and corporate income tax. So, is it feasible to operate like the yin-yang contract in ordinary second-hand house sales (that is, the total price of the house is lowered in the formal contract, and a supplementary contract is signed for the remaining balance)?

In this regard, Chen Zhong, senior partner of Zhejiang Tengfei Golden Eagle Law Firm and senior real estate lawyer, believes that first of all, this practice involves tax evasion and is illegal; secondly, every account of the company has It is not easy to falsify the entry and exit details; moreover, during the house transaction process, relevant departments will conduct house price assessments, and if the price is too low, it will generally fail.

Taken together, buying a house in the name of a company is very costly and risky. It seems that it is really not that easy for ordinary people to buy a house in the name of a company to avoid purchase restrictions.

(The above answers were published on 2017-02-17, please refer to the actual current relevant home purchase policies)

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