Study On Chinese Real Eastate Tax System Reform

The real estate industry has become a pillar industry in the national economy inChina after many years of fast development. But many problems have also come with thefast development of the real estate industry, including such problems as structuralimbalance between supply and demand, high real estate price, too much speculation inthe market, etc. To solve these problems the government has implemented a series ofregulation measures including tax regulation. The current real estate tax system wasestablished during the tax reform in1994and has not changed since then. The tax systemhas become more and more incompatible with the fast development of the real estatemarket and the implementation of regulation measures. The real estate tax system hasreached the crossroad for reform.This paper first analyzes the background for the reform in real estate tax system inChina, elaborates the situation of study on the theories of real estate tax in China andabroad, and puts forward the ideas for the study. This paper then reviews the history ofreform in China’s real estate tax system, points out the problems with the current taxsystem and analyzes these problems. After analysis of the data of real estate tax in thelast decade and the establishment of mathematical models, this paper quantitativelyanalyzes the impact of the change in real estate tax on different subjects in the real estatemarket. This paper also compares the real estate tax system in China with the tax systemsin foreign countries. The advantages and characteristics of foreign real estate tax systemsare summarized so as to provide references for the reform in China. Finally, on the basisof the analysis and summarization, this paper puts forward ideas and ways for the realestate tax system reform in China.