According to the announcement, Huizhou will soon adjust the approved collection rate of personal income tax and land value-added tax on the transfer of second-hand houses. The date for soliciting opinions on the announcement is 202 1 11October 21,and it will be implemented from 2021June1day. Among them, the approved personal income tax rate of individuals (excluding individual industrial and commercial households) transferring second-hand houses is adjusted to 1%, and the approved personal income tax rate of individuals (excluding individual industrial and commercial households) transferring second-hand non-residential houses is adjusted to 1.5%. In the case of transfer under special circumstances such as auction, it shall be implemented in accordance with relevant tax policies. In addition, the approved rate of land value-added tax for individuals (including individual industrial and commercial households) transferring second-hand non-residential land is adjusted to 5%. It is worth noting that the personal income tax on the sale of real estate in Huizhou is currently 2%, which will be halved after adjustment.
Coincidentally, Zhuhai City, to which Guangdong-Hong Kong-Macao Greater Bay Area belongs, recently lowered the personal income tax rate for the transfer of second-hand houses.
On September 16, the website of Zhuhai Taxation Bureau of State Taxation Administration of The People's Republic of China released the Notice on Soliciting Opinions of Zhuhai Taxation Bureau of State Taxation Administration of The People's Republic of China and Hengqin New District Taxation Bureau of Zhuhai City of State Taxation Administration of The People's Republic of China on Adjusting the Approved Collection Rate of Personal Income Tax and Land Value-added Tax on Second-hand Housing Transfer in Zhuhai (Draft for Comment). According to the announcement, Zhuhai will soon adjust the approved collection rate of personal income tax and land value-added tax on the transfer of second-hand houses. The announcement date is 202 1 10 17, and it will be implemented from 202 1 1.
It is reported that the announcement clarified the appropriate adjustments to the approved personal income tax rate on the sale of real estate in the Announcement of Zhuhai Taxation Bureau of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) and the Announcement of Hengqin New District Taxation Bureau of Zhuhai City, State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) (No.3 of 20 19). The approved personal income tax rate for individuals transferring second-hand houses is adjusted to 1%, and the approved personal income tax rate for individuals transferring second-hand non-residential houses is adjusted to 1. In the case of transfer under special circumstances such as auction, it shall be implemented in accordance with relevant tax policies. It is worth noting that the personal income tax rate of individuals transferring second-hand houses in Zhuhai was 2%.
Reduce the transaction cost of second-hand houses
Combing the above announcements in Huizhou and Zhuhai, we can see that "in order to further promote the unification of tax law enforcement standards between regions, fair the tax burden of second-hand housing transfer, improve the convenience of tax collection and management, reduce the cost of tax collection and management, and improve tax compliance and social satisfaction."
Since September, at least four cities in Guangdong Province, including Zhuhai and Huizhou, have reduced taxes on second-hand housing transactions.
Yan Yuejin, research director of the think tank center of Yiju Research Institute, said that from the reasons of adjustment, the contents of "deepening the reform of tax collection and management" were mentioned in the announcements of various cities, so the starting point of similar adjustment was not deeply related to real estate, but related to the reform of the tax department. From the perspective of deepening the reform of tax collection and management, according to the Opinions on Further Deepening the Reform of Tax Collection and Management issued in March this year, it is explicitly mentioned to reduce the collection cost and promote the unification of tax law enforcement standards among regions. From the perspective of the second-hand housing market, the previous tax collection may have different standards and complicated tax calculation methods, which obviously violates the requirements of reducing the cost of tax collection and unifying the tax collection standards. From the perspective of Guangdong market, the adjustment of tax and fee standards for second-hand houses has supported the construction of Guangdong-Hong Kong-Macao Greater Bay Area to some extent, and it is expected to be unified at least in the region.
According to the calculation of Leyoujia Research Center, taking the average transfer price in Zhuhai as an example, after the tax rate adjustment, a set of ordinary houses can save a full 20,000 yuan, a set of non-ordinary houses, that is, business apartments, office buildings and shops can save 1 10,000 yuan, and the land value-added tax can be reduced 1 10,000 yuan simultaneously, saving a total of 20,000 yuan.
In August, 40,720 first-hand residential buildings in Guangdong-Hong Kong-Macao Greater Bay Area Jiucheng were sold, down 18.0% from the previous month and 42. 1% from the same period last year.
Yan Yuejin pointed out that the adjustment of taxes and fees will also have an impact on second-hand housing transactions. First, the current second-hand housing transactions in various places are facing cooling pressure, and the adjustment of the second-hand housing tax policy has greatly reduced the transaction cost of second-hand housing and contributed to the circulation of second-hand housing. Second, it is necessary to prevent intermediaries and other institutions from speculating on such policies, especially on housing and housing prices.