Anchorman: Good afternoon, welcome to our online talk, today our guest is Deputy Director of Local Taxation Bureau Lu Tingqing, and our theme is “Taxation policies related to pre-owned house and house leasing”.
Director Lu: Good afternoon, glad to chat with you, you are welcome to raise questions.
Question: Will housing preferential policies be adjusted in this year?
Director Lu: As we know, the preferential policies for pre-owned houses will be continued till the end of the year, and no notice of continuation has been received.
Question: What are the standards for ordinary residential houses in Huai’an?
Director Lu: 1. Plot ratio of residential district should be above 1.0 (including 1.0); 2. Construction area of individual apartment should be less than 144 m2 (including this figure); 3. Actual knock down price should be no more than 1.44 times of average price in the same area.
Question: Do we have to pay tax for pre-owned house transfer?
Director Lu: If people gain income from the transfer, he should pay individual income tax, 20% of the income.
Question: Do we have to pay tax for leasing houses?
Director Lu: Yes, the lessor should pay 5% of his rent in Taxation Hall of our bureau.
Question: Why set up sales tax and lease tax of pre-owned houses?
Director Lu: The state wants to keep housing market stable and promote health development of housing market.
Question: How much is the latest rate of sales tax of pre-owned house?
Director Lu: It's 5%.
Question: Do people have to pay stamp tax for sales of pre-owned houses?
Director Lu: Stamp tax is cancelled temporarily for sales of pre-owned houses.
Question: I bought a residential house in downtown in the 1st half year, and then bought a pre-owned house in Chuzhou, where can I transact drawback of individual income tax?
Director Lu: You can transact it in local taxation institute in the urban area.
Question: Tax of sales garage is paid as residential house or non-residential?
Director Lu: We should pay the tax for sales garage as non-residential house.
Question: Is there any network platform or hotline for consultation of Local Taxation Bureau?
Director Lu: Yes, our taxation hotline is 12366, and we also have an online consultation center of Local Taxation Bureau.
Question: Which taxes should enterprises pay when they sell houses?
Director Lu: When selling houses, enterprises should pay: sales tax, city construction tax, education tax plus, land added-value tax, business income tax, and stamp tax.
Question: Shall we pay the house lease rent tax once we lease a house?
Director Lu: Yes, according to current law, people should pay tax as they lease houses.
Question: Who makes the standards for house lease taxation? Are they the same all over the county?
Director Lu: The standards are made by the provincial government; they are not all the same in the country.
Question: Should the disabled pay individual income tax?
Director Lu: According to related documents of the provincial government, the disabled can enjoy preferential tax policies according to level of disability after approved by the local taxation institute.
Question: Is the state-stipulated high-temperature subsidy in the scope of individual income tax?
Director Lu: According to state standards, high-temperature subsidy is not in the scope of individual income tax currently.
Question: What's the tax rate of invoices when individual lease a house?
Director Lu: People should always pay tax whether they transact invoices or not, and comprehensive tax rate is 5%. You should pay the tax at: Huai’an Local Taxation Bureau Tax Collection Service Hall (No.3, Xiangyu North Avenue, Huai’an).
Question: Should experts who enjoy special governmental allowance pay tax during their extended retired period?
Director Lu: During extended retired period, when people draw their salary according to retiring standards, they do not pay individual income tax. And for various income and physical goods released by the unit, individual income tax should be paid.
Question: Should all tax payers go to Local Taxation Bureau to transact taxation registration certificate?
Director Lu: According to “Taxation collection methods of PRC” and "Taxation Registration Management Methods”, enterprises, branches of enterprises, production and business places, individual units of industry and commerce and institutions dealing with production and business should transact taxation registration within 30 days after having operation license. And State and Local Taxation Departments have achieved unified transaction, tax payers can apply for taxation registration at one of them.
Question: There is a saying on the internet that KFC and McDonalds would not pay taxes if customers do not ask for invoices.
Director Lu: That’s not true, taxes of KFC and McDonalds are calculated according to their actual monthly income, instead of amount of invoices.
Director Lu: Thank you very much for pay attention to our works. I'd like to communicate with you next time. See you!
Anchorman: See you next time!