The housing loan interest tax credit is a process in which the housing loan interest is used as a tax deduction item. The housing loan interest tax credit mainly refers to the housing loan interest item in the special additional deduction of personal income tax. According to the Interim Measures for Special Additional Deduction of Individual Income Tax, the first housing loan interest incurred by a taxpayer or his spouse who purchases housing in China for himself or his spouse using a commercial bank or housing provident fund individual housing loan alone or jointly shall be deducted at a standard quota of 1000 yuan per month in the year when the loan interest actually occurs, The maximum deduction period shall not exceed 240 months. Taxpayers can only enjoy the interest deduction of the first housing loan once.
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What is the meaning of housing loan offsetting individual income tax
The so-called housing loan offset individual income tax is to deduct the housing loan interest from the salary before paying the tax. In this way, the individual income tax to be deducted each month will be reduced. According to the Interim Measures for the Special Additional Deduction of Individual Income Tax, the taxpayer or his/her spouse alone or jointly uses the commercial bank or housing provident fund individual housing loan to purchase housing in China for himself/herself or his/her spouse. Article 14 of the Interim Measures for Special Additional Deduction of Individual Income Tax, if a taxpayer or his or her spouse uses a commercial bank or housing provident fund individual housing loan alone or jointly to purchase housing in China for himself or his or her spouse, the interest expense of the first housing loan incurred shall be deducted at the rate of 1000 yuan per month in the year when the loan interest actually occurs, The maximum deduction period shall not exceed 240 months. Taxpayers can only enjoy the interest deduction of the first housing loan once. The term "first house loan" as mentioned in these Measures refers to the housing loan that can enjoy the first house loan interest rate when purchasing a house.
What is the meaning of personal tax deduction housing loan
It means that the interest on housing loans is deducted as a deduction before tax.
1. The so-called mortgage interest deduction of individual income tax refers to the deduction of mortgage interest as a pre tax deduction. That is to say, on the day of monthly salary payment, when calculating how much tax you should pay and how much interest your mortgage generates, you can subtract how much from your salary to calculate your tax.
2. The biggest beneficiaries are actually urban residents. The deduction of individual income tax from housing loan interest can directly improve the housing demand of urban residents and alleviate the situation of heavy housing loan pressure, large contributions and high interest.
3. From the policy perspective, the deduction of individual income tax from housing loan interest meets the needs of financial and tax system reform under the economic system reform; From the perspective of development, it can reduce the mortgage loans of home buyers, which is in line with the current de stocking orientation of the property market; From the perspective of consumption, reducing the cost of housing purchase is equal to increasing disposable income, which can stimulate consumption outside the real estate industry.
Can mortgage be tax deductible
Legal analysis: Yes. The interest of personal mortgage loan can be deducted from the income from selling the house, that is, to offset personal income tax in disguised form. Housing loan interest offset individual income tax refers to the payment of individual income tax after deducting housing loan interest from each month's salary, so that the base of the amount of tax payment becomes smaller, and the individual income tax paid is correspondingly smaller. Individual income tax is the general term of the legal norms that regulate the social relations between the tax authorities and natural persons (residents and non residents) in the process of the collection and management of individual income tax. Taxpayers of individual income tax include both resident taxpayers and non resident taxpayers. Resident taxpayers have the obligation to pay full tax and must pay individual income tax on all their income from sources inside or outside China; Non resident taxpayers only pay individual income tax on their income from sources within China. Individual income tax is an income tax levied by the state on the income of its own citizens, individuals living in its own territory, and foreign individuals from their own sources. In some countries, the individual income tax is the main type of tax, accounting for a large proportion of fiscal revenue, and has a greater impact on the economy.
Legal basis: Individual income tax shall be paid on the following items of individual income in Article 2 of the Individual Income Tax Law of the People's Republic of China:
（1） Income from wages and salaries;
（2） Income from remuneration for labor services;
（3） Income from author's remuneration;
（4） Income from royalties;
（5） Business income;
（6） Income from interest, dividends and bonuses;
（7） Income from lease of property;
（8） Income from property transfer;
（9） Accidental income.
Individual income tax shall be calculated on a consolidated basis according to the tax year for income derived by individual residents from items 1 to 4 of the preceding paragraph (hereinafter referred to as "comprehensive income"); Individual income tax shall be calculated monthly or sub item by item for non resident individuals who obtain income from items 1 to 4 of the preceding paragraph. Taxpayers who derive income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this Law.
