How to calculate inheritance tax in China and how much is inheritance tax in China

At present, there is no inheritance tax in China. So it is not possible to calculate inheritance tax at this time.

In 2010, China promulgated the Draft of the Inheritance Tax of the People's Republic of China, but the draft has not yet entered the legislative process, so it has not yet taken legal effect, and the calculation method of inheritance tax stipulated in it has not yet taken effect.

There is currently no inheritance tax in China.

As early as the beginning of 2013, there was a rumor on the Internet that "Shenzhen will pilot the introduction of inheritance tax", and at that time, the mayor of Shenzhen personally refuted the rumor that "Shenzhen took the lead in implementing inheritance tax" was not true. In November 2015, the Shenzhen Special Zone Daily also published the news that "the inheritance tax will be officially levied in 2016" is false information.

There is no inheritance tax in China.

Inheritance tax is a tax levied on the heirs and legatees of the estate that is levied on the property left behind after the death of the deceased. Theoretically speaking, if the inheritance tax is levied properly, it has certain significance for regulating the wealth distribution of members of the society and increasing the financial resources of social welfare undertakings. Inheritance tax is often established and levied in conjunction with gift tax.

However, in order to attract investment and capital inflows, some countries and regions deliberately do not establish inheritance tax or abolish inheritance tax.

Legal basis: Article 7 of the Provisional Regulations of the People's Republic of China on Inheritance Tax for Lost Sheds (Draft) The exemption amount of inheritance tax is 200,000 yuan.

Article 9 The formula for calculating inheritance tax is as follows: the amount of inheritance tax payable - the net amount of taxable inheritance x the applicable tax rate - the amount of quick deduction.

Article 10 The amount of inheritance tax exemption and the amount standard of allowable deductions shall be adjusted in a timely manner according to the changes in social and economic development.

Article 11 The inheritance tax shall be calculated and rebated in accordance with the "Five-level Progressive Tax Rate Table for Inheritance Tax" attached to the Rules.

At present, China has not begun to levy inheritance tax, and there has been no regulation or draft on inheritance tax. According to the "Letter on the Reply to Proposal No. 0107 of the Fifth Session of the Twelfth National Committee of the Chinese People's Political Consultative Conference" released by the Ministry of Finance, China has not yet levied inheritance tax, nor has it ever issued regulations related to the sale of property tax or the draft regulations.

Legal basis: Article 1122 of the Civil Code: Posthumous leased property is the personal legal property left behind by a natural person when he or she dies. An inheritance that is not allowed to be inherited in accordance with the law or by its nature shall not be inherited.

Legal analysis: At present, China has not issued relevant laws and regulations on inheritance tax, so there is no collection standard. Inheritance tax is still in a state of debate, first of all, it is difficult to grasp the real property situation, resulting in the inability to clarify the amount of inheritance, and secondly, the threshold of inheritance tax has not yet been implemented.

However, there is no need to pay taxes on the inheritance of real estate.

Legal basis: Notice on Individual Income Tax Issues Concerning Individual Donated Housing Article 1 The following circumstances shall not be subject to individual income tax on both parties for the free gift of housing property rights: (1) The owner of the housing property rights will donate the property rights to his spouse, parents, children, grandparents, grandchildren, grandchildren, and brothers and sisters of the Bird Brigade free of charge; (2) The owner of the property right of the house gives the property right of the house free of charge to the guardian or supporter who bears the obligation of direct support or support; (3) The legal heirs, testamentary heirs or legatees who have obtained the property rights of the house in accordance with the law after the death of the owner of the property rights.

Legal analysis: the collection method of inheritance tax: if the net amount of taxable inheritance in the annex to the excess cumulative tax rate table of the new draft does not exceed 800,000, the tax rate is 0; The applicable tax rates of 800,000-2 million, 2 million-5 million, 5 million-10 million and more than 10 million are respectively %, and the corresponding quick deductions are 50,000, 250,000, 750,000 and 1.75 million respectively, and the formula for calculating inheritance tax is "applicable tax rate - quick deduction for net taxable estate".

Legal basis: The "Outline of the Implementation of the National Tax Administration" regards inheritance tax as one of the taxes to be levied, but it is not levied due to the conditions at that time. The new tax reform of 1994 included inheritance tax as one of the possible taxes imposed by the state.

In 1996, the National People's Congress approved the Ninth Five-Year Plan for National Economic and Social Development (the Ninth Five-Year Plan) and the Outline of the Long-Range Objectives for the Year 2010, which proposed to "gradually introduce inheritance tax and gift tax". Total amount of inheritance tax payable = net taxable estate Applicable tax rate - quick deduction 1, the tax rate for the part not exceeding 500,000 yuan is 10% for the quick deduction 0 yuan 2, the tax rate for the part exceeding 500,000 to 2 million yuan is 20%, the quick deduction is 50,000 yuan 3, the tax rate for the part exceeding 2 million to 5 million yuan is 30%, the quick deduction is 250,000 yuan 4, the tax rate for the part exceeding 5 million to 10 million yuan is 40%, the quick deduction is 750,000 yuan 5, and the tax rate for the part exceeding 10 million yuan is 50% Quick deduction of 1.75 million yuan, inheritance tax subject to inheritance: all property left by the decedent at the time of death + donated property occurred within 5 years before death, net taxable estate = total amount of inheritance tax payable - total amount of taxable estate not included in taxable estate (Article 5) - amount allowed to be deducted from the total taxable estate (Article 6) - exemption amount (200,000).