Taxes on property inheritance taxes, taxes on property inheritance

Provisional Regulations of the People's Republic of China on Estate Tax (Draft).

The direct necessary expenses for the execution of the will and the administration of the estate shall be calculated at 0.5% of the total taxable estate, but the maximum shall not exceed 5,000 yuan.

If the decedent's estate is inherited in the first order as stipulated in Article 10 of the Inheritance Law of the People's Republic of China, each heir may deduct 20,000 yuan from the total taxable estate; For subrogation, deductions can be given according to the first-order heirs. If one of the heirs has lost the ability to work and is supported (protected) by the deceased during his lifetime, an additional 5,000 yuan per year may be deducted according to the number of years he is 75 years old at that time; If one of the heirs is over the age of 18 and is raised by the deceased before his death, an additional 5,000 yuan per year may be deducted according to the number of years he or she has reached the age of 18 at that time. If the estate of the deceased is inherited by the second-order heirs specified in Article 10 of the Inheritance Law of the People's Republic of China, each heir may deduct 10,000 yuan from the total taxable estate; If one of the heirs has lost the ability to work and is supported (raised) by the deceased during his lifetime, an additional 3,000 yuan may be deducted per year according to the number of years since his or her age reached 75; If one of the heirs is under the age of 18 and is raised by the deceased before his death, he or she may be deducted 3,000 yuan per year according to the number of years he or she has reached the age of 18 at that time.

If any of the above-mentioned heirs renounces their inheritance rights or loses their inheritance rights, they shall not be deducted.

Donated property that occurred within five years prior to the decedent's death and did not exceed 20,000 yuan in aggregate.

An indivisible house in which the person is admitted to ownership and lives in it with his or her spouse, children or parents, and whose value does not exceed $500,000. If the value exceeds 500,000 yuan, only 500,000 yuan is allowed to be deducted.

The amount of inheritance duty exemption is $200,000.

The formula for calculating inheritance tax is: amount of inheritance tax payable - net amount of taxable estate x applicable tax rate - quick deduction.

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

Inheritance tax shall be calculated and levied in accordance with the "Five-Level Progressive Tax Rate Table for Inheritance Tax" attached to these Regulations.

Real estate inheritance taxes and fees refer to the taxes and fees collected by the tax authorities and generated in the act of transferring the real estate left by the decedent to the heirs in accordance with the provisions of the Inheritance Law. Such as: deed tax (levied by non-legal heirs), inheritance tax, etc. (not levied in China at present).

The inheritance of real estate property rights is premised on the deceased's lack of will, and the necessary condition is that the immediate family members can have the right to share the inheritance rights. The State Administration of Taxation has made provisions on the levy of deed tax on the ownership of inherited land and housing, and has > the law p-p stipulated in the Inheritance Law of the People's Republic of China

Legal analysis: Real estate inheritance is subject to deed tax, contract stamp duty, warrant stamp duty, business tax and personal income tax. Real estate inheritance and transfer refers to the legal act of transferring the ownership of the decedent's house and its land use right to the heir in accordance with legal procedures, and the inheritance and transfer of real estate are subject to tax.

Legal basis: Article 2 of the Individual Income Tax Law on income from property transfer. Individual income tax is payable.

The income from royalties, interest, dividends, and bonuses, income from property leasing, income from property transfer, incidental income, and other income shall be subject to a proportional tax rate of 20 percent. Article 9 of the Provisional Regulations of the People's Republic of China on Deed Tax shall, within 10 days from the date of occurrence of the tax liability, file a tax declaration with the deed tax collection authority where the land or house is located, and pay the tax within the time limit approved by the deed tax collection authority.

The standard of real estate inheritance tax: pay % of the deed tax and stamp duty and personal income tax of 20% of the difference or 1% of the house price, of which, if it is a statutory inheritance, it can be exempted from deed tax. Among them, the registration of the immovable property inherited by the real estate town is handled by the registration agency where the immovable property is located.

[The basis of the law of the law].Article 209 of the Civil Code of the People's Republic of China provides that the creation, alteration, transfer and extinction of immovable property rights shall take effect upon registration in accordance with law; Without registration, it shall not take effect, unless otherwise provided by law. The ownership of natural resources that belong to the State in accordance with the law may not be registered. Article 210 The registration of immovable property shall be handled by the registration authority at the place where the immovable property is located.

The State implements a unified registration system for immovable property. The scope of unified registration, registration bodies, and registration methods shall be prescribed by laws and administrative regulations. Article 3 of the Provisional Regulations on Deed Tax stipulates that the deed tax rate is 3-5%.

The applicable tax rate of deed tax shall be determined by the people of provinces, autonomous regions and municipalities directly under the Central Government within the range specified in the preceding paragraph in accordance with the actual situation of their respective regions, and shall be reported to the Ministry of Finance and the State Administration of Taxation for the record.

The above is only the current information combined with my understanding of the law, please refer to it carefully!

If you still have questions about this issue, it is recommended that you sort out the relevant information and communicate with a professional in detail.

The tax on the inheritance of real estate includes deed tax, contract stamp duty, etc., and the notary fee for the notarization of real estate inheritance is also charged, which is charged at 2% of the inherited area. Legal heirs (including spouses, children, parents, siblings, grandparents, and maternal grandparents) who inherit the ownership of land and houses are not subject to deed tax. In addition, if the inheritance is subject to tax in accordance with the law, the tax shall be paid according to the law.

[Legal basis].Article 1122 of the Civil Code of the People's Republic of China.

An estate is a personal legal property left behind by a natural person upon his or her death.

An inheritance that is not allowed to be inherited in accordance with the law or by its nature shall not be inherited.

Article 1159.

The division of the estate shall pay off the taxes and debts that the decedent shall pay in accordance with the law; However, the necessary inheritance should be reserved for the heirs who lack the ability to work and do not have a livelihood.

Legal analysis: Real estate inheritance taxes and fees refer to the relevant taxes and fees collected by the tax authorities and generated in the act of transferring the real estate left by the decedent to the heirs in accordance with the provisions of the law. 1. Deed tax; 2. Individual income tax; 3. Value added tax; 4. Stamp duty.

Legal basis: Article 6 of the Deed Tax Law of the People's Republic of China shall be exempted from deed tax under any of the following circumstances:

1) State organs, public institutions, social organizations, and military units that receive land and housing ownership for office, teaching, medical treatment, scientific research, and military facilities;

2) Non-profit schools, medical institutions, and social welfare institutions that receive land and housing ownership for office, teaching, medical treatment, scientific research, pension, and assistance;

3) Inherit the right to use barren mountains, wastelands, and barren beaches for agriculture, forestry, animal husbandry, and fishery production;

4) Changing the ownership of land or houses between husband and wife during the existence of the marital relationship;

5) The legal heirs inherit the ownership of land and houses through inheritance;

6) Foreign embassies and consulates in China and representative offices of international organizations in China that shall be exempt from tax in accordance with the law shall inherit the ownership of land and houses.

According to the needs of national economic and social development, the deed tax may be exempted or reduced for the guarantee of residents' housing needs, enterprise restructuring and reorganization, post-disaster reconstruction, etc., and shall be reported to the Standing Committee of the National People's Congress for the record.

Article 1 of the notice of the Ministry of Finance and the State Administration of Taxation on individual income tax issues related to individual free donation of housing shall not be subject to individual income tax on both parties in the following circumstances

1) The owner of the house will donate the property right to his spouse, parents, children, grandparents, grandchildren, grandchildren, brothers and sisters 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 heir, testamentary heir or legatee who has obtained the property right of the house in accordance with the law after the death of the owner of the house property.

Taxes and fees for real estate inheritance include personal income tax, value-added tax, deed tax (except for statutory inheritance), etc. According to the relevant laws and regulations, the deed tax of 3% to 5% shall be paid in accordance with the law for the sale, gift and exchange of houses, except for statutory inheritance.

[Legal basis].Article 1 of the Deed Tax Law of the People's Republic of China, which came into effect on September 1, 2021.

Units and individuals who transfer the ownership of land and houses within the territory of the People's Republic of China are taxpayers of deed tax and shall pay deed tax in accordance with the provisions of this Law.

Article 2. "Transfer of land and housing ownership" as used in this Law refers to the following acts:

1) the transfer of land use rights;

2) the transfer of land use rights, including **, gifts, and exchanges;

3) Sale, gift, and exchange of houses.

The transfer of land use rights in item (2) of the preceding paragraph does not include the transfer of land contract management rights and land operation rights.

Where the ownership of land or houses is transferred by means of investment (shareholding), debt repayment, transfer, reward, etc., deed tax shall be levied in accordance with the provisions of this Law.

Article 3. The deed tax rate is 3% to 5%.