Individual tax on second-hand housing sales in Zhongshan is reduced to 1! Non-residential is 1.5!

Breaking news, the personal tax on second-hand housing sales in Zhongshan is going to be reduced!

Just now, the Zhongshan Municipal Taxation Bureau of the State Administration of Taxation has publicly solicited opinions from the public on the "Announcement of the Zhongshan Municipal Taxation Bureau of the State Administration of Taxation on Issues Concerning the Income Rate and Approved Collection Rate of the Personal Income Tax Industry (Draft for Comments)" notification.

According to the announcement, Zhongshan City is about to adjust the approved collection rate of personal income tax and land value-added tax for the transfer of second-hand housing by individuals. The approved collection rate is adjusted to 1.5.

Effective from November 1, 2021.

The full text of the announcement is attached below:

Announcement of the Zhongshan Municipal Taxation Bureau of the State Administration of Taxation on Adjusting the Approved Collection Rate of Personal Income Tax and Land Value-Added Tax on the Transfer of Individual Second-hand Houses in Zhongshan City (Draft for Comments) .

In order to thoroughly implement the "Opinions on Further Deepening the Reform of Tax Collection and Administration" issued by the General Office of the CPC Central Committee and the General Office of the State Council, further promote the unification of tax law enforcement standards among regions, fair the tax burden on the transfer of second-hand houses, and improve the convenience of tax processing. , reduce collection costs, improve tax law compliance and social satisfaction, according to the "Notice of the State Administration of Taxation on Issues Concerning the Collection of Personal Income Tax on Income from the Transfer of Personal Housing" (Guo Shui Fa [2006] No. 108) and the "Notice of the Ministry of Finance and the State Administration of Taxation on "Notice on Several Issues with Land Value-Added Tax" (Finance and Taxation [2006] No. 21) and other relevant regulations, the city's adjustments to the personal income tax and land value-added tax assessment collection rates for personal second-hand house transfers are hereby announced as follows:

1. The approved personal income tax collection rate for individuals transferring second-hand residential properties is adjusted to 1, and the approved personal income tax collection rate for individuals transferring second-hand non-residential properties is adjusted to 1.5. Transfers under special circumstances such as auctions shall be carried out in accordance with relevant tax policies.

2. The approved land value-added tax collection rate for second-hand non-residential transfers by individuals is adjusted to 5.

This announcement will be effective from November 1, 2021. "Announcement of the Zhongshan Municipal Local Taxation Bureau on Adjusting the Preliminary Collection Rate and Approved Collection Rate of Land Value-Added Tax in Our City" (Zhongshan Municipal Local Taxation Bureau Announcement No. 1, 2010), "Zhongshan Municipal Taxation Bureau of the State Administration of Taxation on Personal Income Tax Industry Income Announcement on Issues Related to Tax Rates and Approved Collection Rates (State Administration of Taxation Zhongshan Taxation Bureau Announcement No. 3 of 2020) If there is any inconsistency with this Announcement, this Announcement shall prevail.

Interpretation of the announcement is attached below:

In order to facilitate the understanding and implementation of taxpayers and tax authorities, the Zhongshan Taxation Bureau of the State Administration of Taxation is hereby to adjust the personal income tax on the transfer of individual second-hand houses in Zhongshan City. "Announcement on the Assessment and Collection Rate of Land Value-added Tax" (hereinafter referred to as the "Announcement") is interpreted as follows:

1. Drafting background

In order to thoroughly implement the "Announcement" issued by the General Office of the CPC Central Committee and the General Office of the State Council "Opinions on Further Deepening the Reform of Tax Collection and Administration" to further promote the unification of tax law enforcement standards among regions, fair the tax burden on second-hand house transfers, improve the convenience of tax processing, reduce the cost of tax collection, and improve tax law compliance and social satisfaction. According to the "National Taxation Notice of the General Administration on Issues Concerning the Collection of Personal Income Tax on Income from the Transfer of Personal Housing (Guo Shui Fa [2006] No. 108), "Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning Land Value-added Tax" (Caishui [2006] No. 21) and other related According to regulations, our bureau has drafted this "Announcement" to clarify matters related to the adjustment of the personal income tax and land value-added tax assessment collection rates for personal second-hand house transfers in Zhongshan City.

2. Basis for formulation

(1) "Tax Collection and Administration Law of the People's Republic of China" and its implementation rules;

(2) " Notice of the State Administration of Taxation on Issues Concerning the Collection of Personal Income Tax on Income from the Transfer of Personal Housing" (Guo Shui Fa [2006] No. 108);

(3) "Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning Land Value-added Tax Notice" (Finance and Taxation [2006] No. 21);

(4) "Notice of the State Administration of Taxation on Strengthening the Collection and Administration of Land Value-Added Tax" (Guoshuifa [2010] No. 53).

3. Main content

The "Announcement" announces matters related to the adjustment of the personal income tax and land value-added tax assessment rates for the transfer of personal second-hand houses in our city:

(1) The approved personal income tax collection rate for individuals transferring second-hand residential properties is adjusted to 1, and the approved personal income tax collection rate for individuals transferring second-hand non-residential properties is adjusted to 1.5. Transfers under special circumstances such as auctions shall be carried out in accordance with relevant tax policies.

(2) The approved land value-added tax collection rate for second-hand non-residential transfers by individuals is adjusted to 5.

(3) Clarify the "Announcement of Zhongshan Local Taxation Bureau on Adjusting the Preliminary Collection Rate and Approved Collection Rate of Land Value-Added Tax in Our City" (Zhongshan Local Taxation Bureau Announcement No. 1, 2010), "National Announcement of the Zhongshan Municipal Taxation Bureau of the State Administration of Taxation on Issues Concerning the Income Rate and Approved Collection Rate of the Personal Income Tax Industry (Announcement No. 3 of the State Administration of Taxation, Zhongshan Municipal Taxation Bureau of 2020) and this Announcement, this Announcement shall prevail. allow.

4. Implementation Time

The "Announcement" will take effect from November 1, 2021.