The Research On Tax Treatment Of Real Estate Investment Trusts Based On The 1^st Rental Housing REITs Of Poly Real Estate Group Co.,Ltd. In China

Real Estate Investment Trusts(REITs)refer to the securitization sponsor who put some fixed assets with a stable cash flow into a pool of assets,and then raise funds to public investors by issuing stocks or income certificates.REITs is a kind of securities investment method in which the funds raised are transferred to a professional institution for investment management,specifically invested in real estate industries or projects,and the investment income is proportionally returned to investors.As an equity investment tool,REITs mainly enjoy long-term holding income such as rent,which plays an irreplaceable role in stabilizing the real estate market and building a multi-level capital market system.In the 1960 s,REITs were born and started in the United States.After nearly 60 years of development,more than 30 countries around the world have issued REITs,and the market has reached 2 trillion US dollars.In 2005,China's first real estate trust investment fund Yuexiu REITs was issued in the Hong Kong stock market.Then China began to explore the Real Estate Investment Trusts market.As of March 2019,China has issued 46 types of REITs,with a scale of 93.921 billion yuan.At present,there are no standard REITs in China.The REITs currently on the market are called similar-REITs and only have one or several features of REITs.One of the important reasons is that the lack of tax policy that restricts the development of China's real estate trust investment fund market.The real estate trust investment fund has the characteristics of complex transaction structure,numerous participants,and cumbersome taxation process.The taxes involved in the development of real estate trust investment fund business mainly include: value-added tax,land value-added tax,stamp duty,deed tax,property tax,corporate income tax,etc.At present,China government has not issued a special policy for real estate trust investment funds.Therefore,imperfect tax policy and inappropriate tax treatment can bring the various participants problems such as high tax burden,repeated taxation,unclear taxation policies,lacking of investment motion and so on,which is not conducive to the healthy development of the trust investment fund market.Therefore,based on the tax system of the United States,Japan,Singapore and other countries,this paper sorts out and analyzes the applicable tax system of domestic REITs,and summarizes the relevant tax policies and tax treatment processes in China.Through the case of the 1st rental housing REITs of Poly Real Estate Group Co.,Ltd.in China,specific tax analysis was carried out from the dimensions of different taxes and different taxation links,and the current taxation policies and tax treatments for real estate trust investment funds existed.The main problems are: the establishment of the link land value-added tax is relatively high,there is a problem of repeated taxation of VAT during the period of existence,the physical taxation of the SPV is not clear,and the taxation policy affects the tax treatment of the private equity fund.Finally,based on the experience of other overseas countries,this paper proposes policy recommendations that the Chinese government should carry out a perfect tax policy,strengthen the supervision of taxation as soon as possible,build a good institutional environment,eliminate double taxation,increase tax incentives,as well as promote the development of rental housing REITs.