Talk about the healthy development of real estate regulation and tax policy

Abstract: that the real estate tax regulation should focus on establishing long-term mechanism, real estate property tax is to maintain the healthy development of long-term system, we must seriously study the introduction of or determined to proceed with reform of the current real estate tax and land transfer system.

Keywords: real estate property tax reform tax policy long-term mechanism

Correct understanding of the status of real estate and tax regulation
(A) the healthy development of the real estate industry needs straightened position, determined to reverse the "real estate addiction"
Real estate since 2003, was recognized as a pillar industry of national economy, its status has been under special attention to central and local government, but the real estate industry "over the irrational development" will produce a series of negative effects, leading to Some local governments at illegal sites; real estate "over the irrational development", the population increased, land, resources and environment conflict between; soaring housing prices increased distribution of income inequality, social instability, discordant elements; High prices will inevitably suppress the legitimate residents of other areas of consumption, is not conducive to boosting domestic demand, consumption; local income "real estate addiction" to other industries the crowding out of capital and land, so that other industries may be ignored, so do not conducive to Economic restructuring and industrial upgrading, accelerate the transformation of Economic development will inevitably be affected; most of the central control of policy implementation will ultimately depend on local government, and the "land finance" and the over-reliance on real estate only able to make local government construction of affordable housing, but also inadvertently effect of high prices, it can be said that the role of the current macro-control policy failure is an important reason, therefore, must put the status of real estate, real estate prices rise and the blind "thriving" the healthy development of real estate development is by no means the model must reverse this fundamental knowledge and situation.

(B) Real estate tax regulation should focus on establishing long-term mechanism, to improve tax control methods
Real estate industry with a "capital intensive" and the high dependence on land characteristics, determines the land policy and monetary policy is the most important real estate market means, and tax regulation only as an aid, not frequently used , a relatively stable tax system more conducive to the healthy development of the industry.

In the real estate market can take a common regulatory policy, tax regulation has obvious advantages, because the financial and credit control policies are often "one size fits all", and tax policies more structural adjustment. Thus, although only as a tax regulation an aid, but the role of regulation in the real estate is increasingly important in respect of tax regulation, the question now is: The current real estate tax policy, no one from the perspective of the real estate market, the introduction of long-term development .


Of the previous stage of sorting out the real estate tax policy
(A) Since 2005, the implementation of the real estate tax policy
China's real estate tax policy since 2005 has gone through several stages: the first phase, from 2005 to 2008 in the first half, during which the response to high prices, relatively fast growth phenomenon, the state issued a series of austerity policies; the second stage, second half of 2008 to the end of 2009, this phase in response to the international financial crisis, with the country's expanding domestic demand, growth and improve people's guidelines, to encourage people to buy homes and support the real estate business development, policy-oriented tax policy in order to loose from these two phases of view, despite macro-control measures had a positive effect, but from a tax policy perspective, does not achieve the desired results, the domestic price fluctuations in most cities , while in general, continues the trend of rising third stage, since the end of 2009, prices in some cities and to curb excessive growth occurs, tightening of macroEconomic policy began, the corresponding tax policy began to tighten.

(B) Since 2008, the state has adopted a specific real estate tax policy
March 2008, in order to support low-cost housing and affordable housing construction, the state relief low-cost housing and affordable housing construction and operation involved the tax .2008 11 months, in order to reduce the burden on individual buyers, to promote personal housing consumption, the first individual to purchase 90 square meters of the following ordinary housing deed tax rate down to 1% of unity, while also providing for individual housing can be exempt from stamp duty when buying and selling, personal selling homes can also be exempted from land value-added tax introduced in December .2008 The Office of the State No. 131, provides for the transfer of part of the housing business tax breaks for the provisional year policy that individuals purchase of ordinary housing more than 2 years (including 2-year) transfer exempt from sales tax; the individual purchase of ordinary housing transfer of less than 2 years , to purchase a home of their original income less transfer of the business tax. individuals to purchase non-ordinary housing more than 2 years (including 2-year) transfer income minus transfer to purchase a home of their original price of the business tax; individuals to purchase non-ordinary housing for less than 2 In the transfer, based upon the transfer of full charge sales tax revenue, this time the original tax policy adjustment and implementation of the policy compared to the adjustment of the housing part of the business tax exemption of the transfer period, while increasing the intensity of tax incentives by the sales tax policy changes can reduce the transaction costs of housing transfer, and promote the development of second-hand housing market, encourage the general housing consumption.


Links to free download http://www.hi138.com January 1, 2009, the state abolished <<city real estate tax regulations>> to eliminate the property tax levy in domestic and foreign aspects of the "dual track" In 2009 December 22, the state issued tax [2009 ] No. 157, with effect from January 1, 2010, individuals will purchase less than 5 years of non-ordinary home sales, the business tax in full; individuals will purchase more than 5 years (including 5 years) or non-ordinary housing less than 5 years of ordinary home sales, according to its sales revenue minus the purchase price of housing after the business tax; individuals will purchase more than 5 years (including 5 years) outside the ordinary home sales exempt from sales tax. The policy adjusted after the transfer of individuals to purchase ordinary housing sales tax exemption for 2 years from the time back to the previous five years, reflecting the tightening of policy than before the beginning.


The next stage of improving the real estate tax policy proposals
(A) early introduction of a comprehensive property tax, reform of the current real estate tax and land transfer system

Introduction of property tax is the need to improve the tax system, while regulating the distribution of income, optimize resource allocation, improve the tax system and to curb real estate speculation can also play a positive role. As for the regulation of prices, although the short-term effect remains to be investigated, But in the long run to maintain phase of the real estate tax increase, the reform of the current "land lease" system, certainly for the rationalization of prices and avoid excessive growth has a positive role in pressing task is the need to carefully study the real estate tax reform practical problems, including real estate tax revenue target and the taxpayer, tax basis, tax items, tax breaks, tax collection and the transition period the old system specific issues such as convergence, study and solve these problems one by one. taking into account the difficulty of reform can be taken step by step, easy to difficult approaches to, consider first the introduction of "vacant housing tax" and "idle land tax" and other simple tax, a gradual transition to a future comprehensive property tax. China's real estate the need to reform the tax system in China there are many problems of real estate tax, the tax system is unreasonable constraints of the real estate market has become a major reason for the healthy development of .2010 "two sessions", some members have raised real estate taxes related to 12 kinds of taxes, 50 fee, a suite 62 of the total tax levy, which is one of the reasons high prices.

(B) adjusting the rental tax, to develop the rental market
In theory, the property tax the taxpayer is the owner of the property owners, but owners will not put this tax onto tenants? In fact, from our point of view, the owners of property tax will generally be passed on to tenants body. tenants in addition to undertaking the rent, but also pay more taxes, property tax can be levied by the Government from the tenants who received the money order to avoid such a situation, the rental must be adjusted when the tax burden, reduce leasing costs active rental market. China's tax law to levy six individual rental housing tax a fee, not more taxes, heavy tax burden, but also in the actual collection in a very serious problem of tax evasion is recommended that a unified tax rate for ordinary residential lease individual housing unified by a certain percentage of rental income taxation, in order to make an inventory of vacant housing, improve housing efficiency.

(C) of inheritance tax and gift tax, property tax levy to meet
Property tax levy from the world situation, most of them will together with the complete estate and gift tax to make property tax levy not to fall or there are loopholes in the gift or the owner was still alive after the death of the children inherited the property from the levy inheritance tax, which can effectively reduce the property's long-term earnings expectations linked to China's reality, if the large collection of estate duty, to a certain extent, the rich will certainly reduce the original motivation for the purchase of fixed assets. then you should be able to play the corresponding reduce the role of demand, and thus play a role in affecting prices.


References:
1. The State Council. On the promotion of the real estate market is stable and healthy development of, 2010 (1)
2 Chen sincere. Does not mean position will not levy property tax. Legal Daily, 2010 (2)
3 [English] Simon • James, etc. tax Economics, China Financial and Economic Publishing House, 2002
4 Liu Huiyong. Property tax analysis of the specific elements of Liaoning Economy, 2005 (11)

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