Research On Reform Issues Of Owning Real Estate Tax In China

In recent years, the national economy grows rapidly and the incomes of people increase significantly. Chinese real estate market has entered a rapid development stage. The problems of real estate are not only economic issues, but also livelihood problems which affect social stability. Prices are too high, which is rising too fast. It increases the pressure of residents'life and financial risk, which is not conductive to economic and social development. Our government has continuously improved tax system of real estate in order to stabilize the price of real estate and promote healthy and stable development of the economy. Transferring of part of the tax system reform did not achieve the purpose of reducing the housing price. However, it promoted the fast rising of the housing prices. Therefore, the reformation of owning real estate tax has become the main direction.Owning real estate tax has many problems. There are a few kinds of taxes, which only include property tax and urban land use tax. Tax level is too low. The owning real estate tax accounts for a small percentage of the total related tax. Owning real estate tax is to be issued in the form of provisional regulations, which has seriously affected the rigidity of law and legal effect. The power of the tax concentrates excessively in the central, which seriously impacts on the construction of the local tax system and the cultivation of the local main taxes. Inadequate management of owning real estate tax results in serious loss of revenue sources.Owning real estate tax in China aims to strengthen the management of land and housing. Full use of tax leverage improves the efficiency of real estate. The adjustment of national policy and the controlling of the investment of real estate properly regulate the income level of the owners and operators of real estate, which is able to achieve stable local revenue. At present owning real estate tax in China is still at the exploratory stage of tax reform. The theoretical study of this area has many differences. There is not a feasible option of property tax. There is a significant amount of resolution in the party's third plenum in 2003, which named "Decisions on a number of issues about perfecting market economy system". The main idea is that we should implement the reformation of owning real estate tax and cancel the charges correspondingly. This is a clear direction of the reformation of Chinese real estate tax. In this paper, there are four kinds of principle which are equity, efficiency, income and price adjustment. We should study the successful experience of developed countries of the real estate tax, which are maintaining the tax base, low tax rates, housing and land unified tax, and the assessment of the basis of real estate tax on the reformation of owning real estate tax. In the process of researching on owning real estate tax, firstly, we should consolidate the object of the tax, expand the basis of the tax, adjust the basis of the tax, set reasonable rates, standardize the relief provisions of the tax. Secondly, we should improve the management, assessment and the incorporation of all aspects of taxes in order to achieve a standardized form of property tax ultimately.This article is divided into four parts:The first part is the introduction. This part mainly describes the background, domestic and foreign opinions on the property tax.The second part mainly explains the need of reformation of owning real estate tax. First of all, it introduces the status of Chinese real estate tax and the status in the national income. Secondly, it focuses on elaborating the problems and the impact on the owning real estate tax.The third part is mainly concerned with the status and the experience of foreign real estate tax. It introduces the status of real estate tax of the Japan, the United Kingdom and the Korea. Then it elaborates a detailed analysis of the foreign real estate tax system. At last, it explains the inspiration to the reformation.The fourth part mainly explains the principle of the reformation of owning real estate tax in China. It includes equity, efficiency, income and price adjustment. There are some recommendations on tax object, the scope of taxation, taxpayers, tax rate, tax breaks and collection management, which ensure the implementation of owning real estate tax in China.