Discussion: Taxes Related to House Property Mr. Wang purchased an apartment of 100 m2 at the price of 8000 /m2 in May, 2014 and sold the apartment at the price of 12000 /m2 in August,2015. During Jan.,2015 to August,2015, He rent out the apartment and get RMB4000 per month as rents. He kept the invoice while buying the house. Question: what are the taxes payable for the purchase, holding and sale of the apartment? 12:03:46 Dr.DU Li,Depertment of Pulbic Economics,Fudan University

Dr.DU Li,Depertment of Pulbic Economics,Fudan University Discussion: Taxes Related to House Property Mr. Wang purchased an apartment of 100 m2 at the price of 8000 /m2 in May, 2014 and sold the apartment at the price of 12000 /m2 in August,2015. During Jan.,2015 to August,2015, He rent out the apartment and get RMB4000 per month as rents. Deed Tax Sole home Ordinary <90 M2 1% >=90 M2 1.5% Non-ordinary 3% Second and other (For non-residential house property, the Deed Tax rate is 3% and Stamp tax rate is 0.05%.) 12:03:46 Dr.DU Li,Depertment of Pulbic Economics,Fudan University

Discussion: Taxes Related to House Property Mr. Wang purchased an apartment of 100 m2 at the price of 8000 /m2 in May, 2014 and sold the apartment at the price of 12000 /m2 in August,2015. During Jan.,2015 to August,2015, He rent out the apartment and get RMB4000 per month as rents. Business Tax Residential >=2 years Ordinary Non-ordinary (selling price-buying price) ×5% <2 years selling price×5% Non-residential (selling price-buying price)×5% 12:03:46 Dr.DU Li,Depertment of Pulbic Economics,Fudan University

Discussion: Taxes Related to House Property Mr. Wang purchased an apartment of 100 m2 at the price of 8000 /m2 in May, 2014 and sold the apartment at the price of 12000 /m2 in August,2015. During Jan.,2015 to August,2015, He rent out the apartment and get RMB4000 per month as rents. Individual Income Tax Residential <=5 years or second home Without buying invoice Ordinary Selling price×1% Non-ordinary Selling price×2% With buying invoice (Selling price-buying price-taxes-expenses) ×20% >= 5 years and sole home Non-residential 12:03:47 Dr.DU Li,Depertment of Pulbic Economics,Fudan University

Discussion: Taxes Related to House Property Mr. Wang purchased an apartment of 100 m2 at the price of 8000 /m2 in May, 2014 and sold the apartment at the price of 12000 /m2 in August,2015. During Jan.,2015 to August,2015, He rent out the apartment and get RMB4000 per month as rents. Ordinary house Style New-style Apartments of 5 stories and above Old-style apartments of less than 5 stories Price Within Inner ring <=RMB4.5 million Inner ring to outer ring <=RMB3.1 million Outside outer ring <=RMB2.3 million Construction Area <=140 M2 12:03:47 Dr.DU Li,Depertment of Pulbic Economics,Fudan University

Dr.DU Li,Depertment of Pulbic Economics,Fudan University Discussion: Taxes Related to House Property Mr. Wang purchased an apartment of 100 m2 at the price of 8000 /m2 in May, 2014 and sold the apartment at the price of 12000 /m2 in August,2015. During Jan.,2015 to August,2015, He rent out the apartment and get RMB4000 per month as rents. What taxes to consider? The local Deed Tax rate is 3%. The Business Tax rate for renting out houses by individuals is 1.5%，and for transfer of property is 5%. The local City Maintenance and Construction Tax rate is 7%. The Education Surcharge rate is 3%. The Stamp Tax rate for house purchase and sale contracts is 0.05%, but the tax is temporarily exempt for individuals buying and selling residential houses. Land Appreciation Tax and Urban and Township Land Use Tax are temporarily exempt for individuals selling residential houses. House Property Tax rate for renting out houses by individuals is 4%. Individual income tax rate for rents is 10%, for income from transfer of house is 20%. 12:03:47 Dr.DU Li,Depertment of Pulbic Economics,Fudan University

Dr.DU Li,Depertment of Pulbic Economics,Fudan University Discussion: Taxes Related to House Property Mr. Wang purchased an apartment of 100 m2 at the price of 8000 /m2 in May, 2014 and sold the apartment at the price of 12000 /m2 in August,2015. During Jan.,2015 to August,2015, He rent out the apartment and get RMB4000 per month as rents. Taxes at the time of purchasing the house : Deed Tax： 800，000×3%=24，000 Taxes for the rents per month: Business Tax：4000 ×1.5%=60 City Maintenance and Construction Tax: 60×7%=4.2 Education Surcharge:60×3%=1.8 House Property Tax:4000×4%=160 Individual Income Tax: (4000–800–60–4.2–1.8–160) × 10%=297.4 12:03:47 Dr.DU Li,Depertment of Pulbic Economics,Fudan University

Discussion: Taxes Related to House Property Mr. Wang purchased an apartment of 100 m2 at the price of 8000 /m2 in May, 2014 and sold the apartment at the price of 12000 /m2 in August,2015. During Jan.,2015 to August,2015, He rent out the apartment and get RMB4000 per month as rents. Taxes at the time of selling the house : Business Tax: 1,200,000 ×5%=60,000 City Maintenance and Construction Tax: 60,000×7%=4,200 Education Surcharge: 60,000 ×3%=1,800 Individual Income Tax: (1,200,000–800,000–60,000–4200–1,800–24,000) ×20%=62,000 The individual has held the house for 2 years, so the Business Tax is levied on the full value at the rate of 5%. Deed tax in purchasing the house 12:03:47 Dr.DU Li,Depertment of Pulbic Economics,Fudan University