Tax optimization policies promote sustained release of housing demand
2024-11-20
Recently, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban Rural Development issued a notice on tax policies to promote the stable and healthy development of the real estate market, clarifying multiple tax optimization measures related to the real estate market. For both homebuyers and real estate companies, these "real money" discounts help reduce the cost of home ownership for homebuyers, alleviate financial pressure on enterprises, further stabilize market expectations, boost homebuyer confidence, and add momentum to the real estate market's stabilization and stabilization. The preferential measures for deed tax in the housing transaction process will be increased. The new tax policy will increase the area standard that currently enjoys a 1% low tax rate preferential treatment from 90 square meters to 140 square meters, and clarify that Beijing, Shanghai, Guangzhou, and Shenzhen can apply the preferential policy of deed tax for second homes of families uniformly with other regions. That is, after the adjustment, individuals who purchase the only home of a family and the second home of a family with an area not exceeding 140 square meters will be subject to deed tax at a unified rate of 1% nationwide. The reduction of value-added tax will alleviate the financial expenses of homebuyers. The new tax policy clarifies that in Beijing, Shanghai, Guangzhou, and Shenzhen, where the standards for ordinary and non ordinary residential properties are cancelled, a unified personal sales value-added tax policy will apply to other regions of the country after the cancellation of the standards for ordinary and non ordinary residential properties. Individuals in these cities who purchase housing for more than 2 years (including 2 years) and sell it to the outside world will be exempt from value-added tax. On November 18th, Shanghai and Beijing announced the cancellation of standards for ordinary and non ordinary residential properties. Taking the purchase of a second-hand residential property in Beijing for 8 million yuan as an example, assuming it was identified as a non ordinary residential property before the policy adjustment, the landlord purchased the property for 5 million yuan many years ago, and the buyer needs to pay a value-added tax of 5% of the price difference, which is 150000 yuan. After canceling the standards for ordinary and non ordinary residential properties, the 150000 yuan value-added tax can be completely waived. The policy of exempting value-added tax on the sale of houses sold for more than 2 years after canceling the standards for ordinary and non ordinary residential properties is particularly beneficial for the circulation of large and medium-sized new houses in first tier cities. It will reduce the tax burden and cost of home buyers, unblock the bottleneck of residents' demand for improved housing, and improve the circulation of new and second-hand houses, which will play a significant role in promoting smooth circulation. The benefits of improving sexual needs are most evident. The new tax preferential policies have significantly reduced the transaction costs of housing ranging from 90 square meters to 140 square meters and below. Prior to this new tax policy, in cities other than first tier cities, houses over 90 square meters were divided into first and second homes, with deed tax rates of 1.5% and 2%, respectively. After the implementation of the new tax policy, the deed tax for purchasing housing below 140 square meters can be reduced to 1%. The reduction in deed tax for purchasing a second home is the largest in the four first tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen. In the past, second homes in four first tier cities were subject to a deed tax of 3%. This time, it has been uniformly adjusted to 1% for those with 140 square meters or less and 2% for those with 140 square meters or more. Buyers can pay a maximum of 2% less deed tax than in the past. Based on the purchase of a second home for a family in Beijing, with an area of 100 square meters and a total price of 5 million yuan, the previous deed tax required a payment of 3%, which is 150000 yuan. After the new tax policy, a payment of 50000 yuan will be made at a rate of 1%, which can reduce the payment of deed tax by 100000 yuan. According to statistics, the main transaction area for existing housing in first tier cities is between 90 square meters and 140 square meters. Therefore, the scope of the new tax policy to reduce the burden on homebuyers is relatively large, and the policy effect will be more obvious. Reducing land value-added tax will help alleviate financial difficulties for real estate enterprises and inject confidence into their future development. The new tax policy specifies that the lower limit of the pre tax rate for land value-added tax in various regions will be uniformly reduced by 0.5 percentage points. In recent years, there have been significant changes in the supply and demand relationship in the real estate market, and the profit margin of real estate development enterprises has declined. Lowering the lower limit of the pre tax rate for land value-added tax can significantly reduce the amount of capital occupied by the pre tax on development enterprises and alleviate financial pressure. The new policy also specifies that cities that cancel the standards for ordinary and non ordinary residential properties will continue to implement the preferential policy of exempting land value-added tax for taxpayers who construct and sell ordinary standard residential properties with a value-added amount not exceeding 20% of the deducted project amount. This measure can also effectively reduce the land value-added tax burden of some real estate enterprises. Land value-added tax is a tax type with a relatively high tax amount for real estate enterprises, and the new tax policy will reduce the expenses of real estate enterprises. At the same time, the "whitelist" of the real estate financing coordination mechanism will make real estate enterprise loans smoother. This one decrease and one increase is expected to better help real estate companies overcome their business difficulties. With the further release of the effectiveness of various real estate policies, the momentum to promote the stabilization of the real estate market will be enhanced. Therefore, we should maintain an optimistic attitude towards the future trend of the real estate market. (New Society)
Edit：Yao jue Responsible editor：Xie Tunan
Source：Economic Daily
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