Recently, the Ministry of Finance and State Taxation Administration of The People's Republic of China jointly issued the Land Value-added Tax Law of the People's Republic of China (Draft for Comment), which upgraded the Regulations into law and publicly solicited opinions from the public. The end time was August 15.
Regarding the feasibility and necessity of formulating the land value-added tax law this time, the Ministry of Finance and the State Administration of Taxation believe that the land value-added tax legislation is an important step to implement the statutory principle of taxation, and it is also an important content to improve the reform of local tax system, which is conducive to improving the land value-added tax system, enhancing the authority and rigidity of law enforcement, giving play to the role of land value-added tax in raising fiscal revenue, regulating the distribution of land value-added income, and promoting the healthy and stable development of the real estate market, and is conducive to improving China's real estate tax system.
Li Yujia, chief researcher of Guangdong Housing Policy Research Center, pointed out that the land value-added tax has been running in the form of temporary regulations, that is, the Provisional Regulations of the People's Republic of China on Land Value-added Tax issued in February 1993/kloc-0. Recently, the "Land Value-added Tax Law" began to solicit public opinions. The land value-added tax law has basically translated the current Provisional Regulations on Land Value-added Tax, and the scope of taxation, taxation methods and tax rates have remained basically unchanged. However, compared with the provisional regulations, there are many new contents.
At present, the market has the voice of "whether individuals need to pay land value-added tax when selling houses".
In this regard, Wang Huayu, deputy director of the Finance and Tax Law Research Center of Shanghai Jiaotong University, said that for individuals, in principle, land value-added tax will not be levied, and the "Draft for Comment" will not be significantly adjusted.
Personal housing is not levied at present.
Land value-added tax is a kind of tax paid by taxpayers when they transfer the right to use state-owned land, above-ground buildings and their attachments and obtain certain value-added income. Compared with the Provisional Regulations on Land Value-added Tax and the Land Value-added Tax Law, there is not much difference in the expression of the scope of collection.
Li Yujia said that according to the previous Provisional Regulations on Land Value-added Tax and the detailed rules for its implementation, the land value-added tax of real estate development enterprises will be levied in advance at the time of sale, liquidated at the end of the project, and the prepaid tax will be refunded more and replenished less. Individual housing is not included in the implementation.
According to the policy research report of China Index Academy, land value-added tax is not levied on individuals at present, and there is no additional explanation for soliciting opinions. In the future, it is still necessary to further clarify the overall tax reform, but the main direction is not to increase the overall tax burden.
However, in Li Yujia's view, at present, for enterprises and individuals, land or real estate may be the most important wealth, but there has been no proper tax law to regulate and regulate it. The land value-added tax has been running in the form of temporary regulations, that is, the Provisional Regulations of the People's Republic of China on Land Value-added Tax in February 1993/kloc-0. Later, based on the practice of encouraging development investment and moderately restraining, the Provisional Regulations on Land Value-added Tax issued an implementation rule. This detailed rule adopts the implementation principle of simple calculation, moderate deduction and exclusion of individual housing, with the purpose of conforming to housing reform and housing consumption, encouraging developers to purchase land and develop sales, and enterprises and individuals to purchase houses and buy their own homes.
In the future, the circulation of stock land and real estate will dominate the sales market. Legislation of land value-added tax will not only help to standardize the collection and management, but also help to curb the speculation of land assets, curb the inflow of funds into the real estate market, avoid developers hoarding land, and accelerate land development and sales. In addition, for individuals, in addition to the reduction or exemption of land value-added tax according to the needs of economic and social development (for example, ordinary housing with the added value not exceeding 20% of the deducted project amount), owning multiple houses, large-sized houses and luxury houses may also be subject to land value-added tax.
Li Yujia believes that with the growth of space value, supporting public services have contributed the most, and owners have benefited a lot, and they should be adjusted through taxation, which is the same as the "tax adjustment principle" of property tax.
Then, what are the differences between the land value-added tax legislation and the previous Provisional Regulations, and what impact will it have on the real estate industry?
Will transfer, transfer of collective land use rights of buildings and their attachments into the scope of taxation.
The biggest difference between this exposure draft and the previous provisional regulations is that the buildings and their attachments that transfer and transfer the right to use collective land are included in the scope of taxation. At the same time, it is proposed to cancel the land appreciation income adjustment fund currently levied on collective real estate.
The explanations issued by the Ministry of Finance and State Taxation Administration of The People's Republic of China show that the main consideration for adjusting the scope of taxation is to link up with the land system reform. In order to implement the decision of the Third Plenary Session of the 18th CPC Central Committee, in 20 14, the General Office of the CPC Central Committee and the General Office of the State Council explicitly requested the establishment of a system of collective construction land (hereinafter referred to as collective construction land) entering the market, and also requested the establishment of a land value-added income distribution mechanism that takes into account the state, the collective and the individual, so as to reasonably improve personal income. Since 20 15, 33 pilot areas across the country have carried out three reform pilots, namely, rural land expropriation, collective construction land entering the market and homestead system reform, allowing collective construction land to enter the market and transfer, with the same rights and prices as state-owned construction land. At present, the pilot area adjusts the land value-added income through the transitional method of collecting the land value-added income adjustment fund. The amendment to the Land Management Law has been submitted to the National People's Congress Standing Committee (NPCSC) for initial consideration, and the provision that state-owned land or the original collective land expropriated as state-owned land must be used for non-agricultural construction has been deleted. In order to establish a land value-added income distribution mechanism and link the tax system with the land system reform of establishing a unified urban and rural construction land market, the Draft for Comment has included collective real estate in the scope of taxation, and at the same time, it is proposed to cancel the adjustment fund for land value-added income, so that the burden of collective real estate is generally stable before and after legislation.
The tax system of the real estate industry will be more perfect.
According to the report of China Index Academy, the land value-added tax law will raise the Provisional Regulations into law, which will further improve the tax system of the real estate industry and help build a long-term mechanism. The further promotion of the real estate industry tax legislation, including the land value-added tax law for comments this time, and the real estate tax law that is currently brewing, will jointly have a lasting impact on the real estate industry, thus stabilizing the expectations of market participants and preventing the phenomenon of hoarding land, speculating land and hoarding houses. At the same time, the tax law has given the State Council and local governments certain decision-making space, which will enable the established real estate industry tax system to be more flexibly applied to the real estate market regulation process.
For housing enterprises, the financial pressure has increased. Judging from the overall financial pressure, the previous collection system was relatively extensive, leaving a certain flexible operating space for housing enterprises. The latest draft for comments clearly stipulated the tax payment period and collection management methods. Although this had little impact on the tax payment cost (the policy emphasized that the tax burden should remain stable in the short term), it compressed the operating space of enterprises and the overall financial pressure increased. Judging from the expected changes of land acquisition by real estate enterprises, the back-end tax payment policy changes, and it is more difficult to strengthen tax planning by supervision. The accounting method of enterprises investing in land acquisition at the front-end will change accordingly, which will cool down the land price expectation to a certain extent. Judging from the differentiated influence of different real estate enterprises, the adjustment of land value-added tax has obvious influence on developers with large land reserves, long development cycle and large product premium, but has little influence on fast-moving enterprises. In addition, preferential tax policies have increased the decision-making authority of local governments, and enterprises will face differentiated tax preferences in different regions and different business categories in the future, which requires in-depth study. On the whole, the further standardization of tax policy will further promote the pattern of the strong in the real estate industry, and enterprises with strong financial strength that can achieve scale growth at low profit margins will be more competitive.
Further improve the local tax system
The industry believes that for local governments, the local tax system can be further improved, the collection and management will be stricter, and the tax source will be more stable, which will become an important tax type for a long time to come. Land value-added tax has been controversial for many years, and the appearance of temporary regulations was also based on the uncertainty in practice. At present, from regulations to laws, it shows that land tax increase will become an important tax in the future, and it will be paid more and more attention in the future, and the corresponding supervision will become more and more standardized, and the punishment or protection of related subjects will be stricter. According to the data, the land value-added tax has increased steadily in recent years. The four major taxes, namely, value-added tax (business tax before camp reform), income tax, deed tax and land value-added tax, account for 35.22%, 17.4 1%, 15.26% and18.46, respectively. Land value-added tax accounts for a relatively high proportion, and the adjusted land value-added tax has become a more stable local tax source.
Li Yujia pointed out that over the past 20 years, the scale of land value-added tax revenue in China has been expanding. According to the data released by the Ministry of Finance, the income from land value-added tax of 20 18 reached 564.2 billion yuan, a year-on-year increase of 14.9%. The revenue in the first quarter of this year was166.7 billion yuan, a year-on-year increase of 14.7%.