Research On The Reform Of Real Estate Tax System Of China

Since the reform and opening,Chinese real estate industry has released huge market demands and developed rapidly in the past 30 years. Well since 2004,the overheating of the real estate market especially the unprecedented high prices of the urban commercial houses make it a major concern which has been widely focused by our society.Since then the States have taken a number of macroeconomic control policies, including tax to regulate the real estate market.In recent years, the effects are beginning to show. The investment enthusiasm in real estate market especially in residential investment began to abate and the new project commenced area began to decline. However, the real estate market demand is still huge, and the supply and demand contradiction of urban housing is still serious.Real estate prices continue to run high.Our current property tax reform was formed in 1994. Thereafter it was gradually improved and revised which is now a giant system including ten taxes and covering the whole process of real estate development, circulation and possessing. The property tax plays an important role in regulating real estate prices,promoting balanced development of the real estate market, optimizing resource distribution, increasing local fiscal revenue and adjusting income gap.At the same time we should see that the current real estate tax system still exist many problems, and the reform of the system is an important subject of taxation reform in China.These utilizesliterature analysis, comparative analysis, combining the theory and empirical analysis methods to conduct the research with the logic structure from the theoretical analysis and practical investigation, the comparison of the experience, and the countermeasure suggestions. This comprehensive analysis framework is based on previous research results, practical experience, and related theory of tax which adjusts the related tax system and policy for comprehensive consideration, and assures its systemic and timeliness.The theoretical analysis clarifies the real estate tax system on the basis of related concepts, combs the evolution of real estate tax law system, and analyzes the functions of real estate tax system including organizing fiscal income, regulating the real estate market development, and adjusting the income gap.In the practical inspection part, this thesis divides the real estate tax system into three phases: the constructing phase, the circulating phase and the possessing phase. Based on what mentioned above, it analyzes the current real estate tax system situation and outlines the policy executed in the real estate system. The flaws of current tax system are summarized as follows: the tax categories are overlapping and the tax base is narrow; the support system is not sound and the tax policy comparatively lags behind the need of reforming; the administrative charge is tedious and the country overemphasizes on the currency of taxation and ignores the possessing phase of taxation. Then this thesis analyzes the pilot project of tax reform in Shanghai and Chongqing.In order to improve the real estate tax system in China, this thesis chooses the US, South Korea and Hongkong as the object of study because they are different both in developing stages conditions. Looking from the macroscopic angle, the real estate tax system overseas has some remarkable characteristics worth learning, that is, firmly executing the principle of “wide tax base, few categories of taxes, low tax rate” and “regular tax and few fees” and paying more attention on the legislation of taxation and the possessing phase.In the countermeasure research part, this thesis first puts forward the basic thought on how to improve the real estate tax system, that is, based on the principle of standard tax, crystal lease and few fees, to broaden the tax base, narrow the tax categories and lower the tax rate. Secondly, it gives suggestions on real estate tax system reform, which include the adjustments in the constructing phase, the circulating phase tax and the possessing phase. It specifically draws attention on the adjustment of the rent in the real estate industry and the adjustment of increment tax on land value; it also touches upon other issues such as the reformation of changing business tax into added-value tax. Thirdly, it analyzes the complementary reform in the tax system, such as enhancing real estate tax legislation and improving the taxation management system, especially improving our country‘s property legislation system, constructing and optimizing the assessment of the real estate system.