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How much can owners save after tax reduction?

Li Fenghe
February 21, 2019 08:16 | Source: Guangzhou Daily
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Original title: How much can owners save after tax reduction?

Citizens are in the tax hall.

Recently, the news about taxes and fees has been closely watched by citizens. During the period from 20:00 on February 22, 2019 to 24:00 on February 28, 2019, the front desk of various tax service offices of tax authorities at all levels in Guangdong Province (excluding Shenzhen City), tax windows of administrative service centers, tax windows of real estate registration centers and other tax service places suspended handling of non social security related tax (fee) business; Self service tax terminals, electronic tax bureaus and other services are suspended simultaneously. Local tax bureaus remind taxpayers and payers to properly arrange business processing time and handle relevant tax (fee) related matters at off peak.

Among them, the real estate transaction is also affected by the suspension of service for this upgrade, and the buyer and seller should reserve sufficient time to pay taxes at the beginning of March. During this period, the real estate registration center can receive documents normally. According to the principle of "certificate before tax", taxes will be paid normally from March 1.

   Property tax reduction mainly benefits owners

In addition to the adjustment of tax handling time, owners and buyers also benefited from the "tax reduction package for small and micro enterprises". On January 19, the country launched another batch of inclusive tax reduction measures for small and micro enterprises, in which provincial (district, city) governments are allowed to reduce resource tax, urban maintenance and construction tax, stamp tax, urban land use tax, farmland occupation tax and other local taxes and education surcharges within 50% for small-scale VAT taxpayers.

Real estate people told reporters that they had noticed that in the tax bills issued by residential owners and commercial property owners whose certificates have been issued for less than two years recently, the value-added tax was reduced from 5.6% to 5.3%. The reduction of this tax rate reflects the favorable policy of halving the value-added tax surcharge.

In addition, the owners who rent houses also get a good tax cut. For those who rent 20 to 30000 yuan per month, the tax rate of rental property will be reduced from 6% to 4%; If the monthly rent of residence is between 30000 yuan and 100000 yuan, the tax reduction will be more powerful, down from 7.9% to 4.295%; If the monthly rent of commercial property is 30000 to 100000 yuan, the tax rate will be reduced from 13.7% to 8.35%.

   Focus

   Half of VAT surcharge ≠ half of VAT

When hearing the news that "VAT surcharges will be halved", some owners thought that it was "VAT halved" and were particularly happy. In fact, this reduction is "VAT surcharge", not VAT itself. In brief, before January 1, 2019, the residential value-added tax rate involved in real estate transactions was 5.6%, of which 0.6% was value-added tax surcharges. The tax reduction benefit was based on the half charge of 0.6% surcharges. Therefore, from January 1, 2019 to December 31, 2011, the residential value-added tax rate will be 5.3%. Taking an ordinary house with a certificate of 4 million yuan and less than two years as an example, 224000 yuan of VAT should be paid before 2019, but only 212000 yuan will be paid from 2019 to 2021, saving 12000 yuan.

He Zhixiong, director of mortgage business of Huihan, said that most of the second-hand houses currently traded were properties with certificates of two years or more. According to tax regulations, ordinary residential houses with certificates of two years or more can be exempt from VAT. Therefore, the VAT surcharge in this tax reduction will be halved, which will not affect most second-hand housing transactions. Ordinary residences with certificates of less than 2 years can enjoy a preferential tax rate of 5.3%. Non ordinary residential buildings with an area of more than 144 square meters also benefit from this. For non ordinary residential buildings with a certificate of less than two years, 5.3% value-added tax will be levied in full. For non ordinary residential buildings with a certificate of more than two years, 5.3% value-added tax will be levied on the value-added part.

According to the staff of the mortgage institution, they have found that the tax reduction is reflected in the tax bill in the transaction of assisting the owner to handle the transfer recently, and the value-added tax is indeed reduced from 5.6% to 5.3%.

Liang Wenyao, a senior manager of Hefu Real Estate Trading Center, told the reporter that in addition to the VAT surcharge, the fee for real estate transaction decals was also halved. The decals are similar to stamps, which are pasted on the newly issued real estate certificate. Previously, the decals of a real estate certificate charged 5 yuan, but now they charge 2.5 yuan.

   Monthly income of 30000~100000 high-end rental is the most beneficial

Thanks to the tax reduction package for small and micro enterprises, rental housing tax is the most obvious tax type benefiting from real estate. In terms of residential buildings, the average monthly rent of residential buildings in the central urban area of Guangzhou last year was 55.41 yuan/m2, and the monthly rent of a 60 square meter two bedroom apartment was about 3400 yuan. According to the tax rate corresponding to the previous rental property tax, the monthly rent is between 20 million yuan and 30000 yuan, and the rental property tax rate is 6%, that is, 204 yuan is required to be paid each month. However, since January 1 of this year, the tax rate of rental property tax corresponding to the monthly rent of 20 to 30000 yuan has been reduced to 4%, that is, the monthly tax rate of a house with a monthly rent of 3400 yuan is 136 yuan.

Housing and shop owners with a monthly rent of 30000 to 100000 yuan are the most favored group, and the payable tax rate of housing is reduced from 7.9% to 4.295%; The commercial property tax rate was reduced from 13.7% to 8.35%.

At present, high-end residences with a monthly rent of 30000~100000 yuan are mainly concentrated in Zhujiang New Town, Ersha Island and some villas. According to the reporter, the monthly rent of a 236 square meter three bedroom apartment in Huiyuetai, the top high-end apartment in Zhujiang New Town, is 70000 yuan, and the monthly rent of a 348 square meter five bedroom apartment is 100000 yuan. Before 2019, the owners of these high-end rental flats had to pay about 5600~7900 yuan of rental property tax per month, but only 3006~4295 yuan this year.

For commercial properties, the monthly rent of a 150 square meter office building is basically more than 30000 yuan based on the monthly rent of 200 yuan/m2 of office buildings in Zhujiang New Town, so most office building owners in Zhujiang New Town will benefit from this tax reduction.

   Can I get a tax refund? Notice the announcement

Can owners who have paid tax at the old tax rate before issuing documents enjoy tax refund? A real estate person said that because the tax department is upgrading the system recently, no tax refund related matters have been announced. It is suggested that the owners should pay close attention to it, or check with the tax department after the beginning of March. (Li Fenghe)

(Editor in charge: Kong Haili, Liu Ran)

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