Transfer property to next of kin

No personal income tax is levied.

The Ministry of Finance and State Taxation Administration of The People's Republic of China issued a report on

Individuals obtain relevant income.

Applicable personal income tax

Announcement of taxable income items

According to the announcement >>

Personal income tax is not levied on property owners who give their property to their spouses, parents, children, grandparents, grandchildren, grandchildren and brothers and sisters. ...

In order to implement the revised Individual Income Tax Law of People's Republic of China (PRC) and do a good job in policy convergence, the relevant matters concerning the application of taxable income items of individual income tax to individuals are hereby announced as follows:

One, individuals to provide security for the unit or others to obtain income, should be calculated according to the "accidental income" project to pay personal income tax.

Second, if the real estate owner gives the real estate to others free of charge, the donation income obtained by the donee from the donated house shall be subject to personal income tax according to the "accidental income" item.

According to Article 1 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on the Collection of Individual Income Tax on Individual Donated Houses (Caishui [2009] No.78).

In any of the following circumstances, neither party shall collect individual income tax:

(1) The property owner gives the property to the spouse, parents, children, grandparents, grandparents, grandchildren, grandchildren, brothers and sisters free of charge;

(two) the owner of the house property gives the house property to the supporter or the supporter who has the direct maintenance or maintenance obligation;

(three) after the death of the owner of the house property, the legal heir, testamentary successor or legatee who has obtained the house property according to law.

Donation income mentioned in the preceding paragraph shall be calculated according to the provisions of Article 4 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Individual Income Tax on Individual Donation of Houses (Cai Shui [2009] No.78).

When the news came out, netizens commented one after another.

A good policy needs popular support.

But Bian Xiao also wants to remind you.

Although real estate inheritance and free gifts

There is no tax on both sides,

But you still have to pay some taxes!

▼

First, the way of inheritance.

Through the way of immediate family inheritance, that is, the way of legal inheritance. In this way, deed tax, value-added tax and its additional tax and personal income tax are exempted, and only a certain notary fee is needed.

Second, the way to give gifts.

Although personal income tax is exempted by donation, both donors still need to pay deed tax and stamp duty. The deed tax paid by the transferee is generally about 3% of the property price, and both parties have to pay 0.05% stamp duty. In addition, the gift to immediate family members does not need notarization, and the gift to non-immediate family members may involve notarization fees.

Third, the transaction method

The transaction method is more complicated.

The first is deed tax, depending on whether it is the first set of housing, and the tax rate borne by the size of the real estate is different.

Followed by the value-added tax, the real estate license is exempted for two years, and the value-added tax needs to be paid according to the specific situation in less than two years (there is a corresponding difference between ordinary housing and non-ordinary housing).

Finally, personal income tax. Personal income tax is not required if the real estate license is over five years and it is the only house in the family. If it is not the only house with five years, it needs to pay certain taxes according to the relevant situation.

Source: People's Republic of China (PRC), Ministry of Finance, official website, China Real Estate Association.