Study On Tax Issues Land Property Transactions

According to the gist of the regulations and policies concerning land trading market promulgated by the State Council and other departments concerned, following the principle of adjusting the land market through taxation, based on the issues aroused in the taxation during Land Property Trading in our country, and referring to the examples and experiences shared by developed regions and foreign countries of market economy, the paper deeply and comprehensively researched the taxation of Land Property Trading through connecting theories with practices, combining literature references with actual investigations and comparative study. Hereon, the paper offered relevant suggestions for the enhancement of the taxation status of our Land Property Trading. Specifically, there are two objectives:first, enrich and expand the basic theories concerning the taxation of Land Property Trading and provide material and ideas for researches of domestic academia; second, enable a more efficient adjustment of the land property market via taxation thus enhance the utilization efficiency of our land resource; regulate the trading activities in the Land Property market and finally optimize the allocation of land resource.Through analyzing the status quo of the taxation of Land Property Trading in our country and the real situation of Dalian’s Land Property Trading Taxation, the paper summarized6problems existed in domestic Land Property Trading activities. First, the tax categories are not properly set up; second, too much tax load is burdened on the trading process of land property; third, the land value increment tax is collected over a limited scale and the nominal tax ratio is too high; fourth, some of the tax items are too complex in their calculation method to avoid difficulties during collection; fifth, taxes has been mixed with and replaced by all kinds of fees in the field of real estate; sixth, some of the tax items are implemented with flatter rates which limited the increments of tax revenue.Finally, through the comparison and analysis of the land taxation system of developed countries and regions, the paper proposed three suggestions in terms of tax categories, tax rate and tax base set-up respectively according to the principles of land tax reform. In terms of tax item set-up, the government should consummate existing land value increment tax. The investors’ return of investment and inflation factors should be considered and properly taken off when collecting the land value increment tax; replace the land utilizing tax and the housing estate tax with property tax; set up vacant land tax. In terms of tax ratio, property tax should be collected with proportional tax rate; vacant land tax can be implemented with differentiated rates by time and grades. In terms of tax base set-up, the tax bases for land taxes should be determined by the estimated price of the land property; the same with the property tax and the vacant land tax.