Research on Taxing Real Estate in China
|School||Hebei University of Economics|
|Keywords||Real estate tax Local Principal Tax Taxation elements Tax system Real Estate|
Because china was not able to form a system to improve the real estate tax system after the implementation of the tax system reform in1994, there resulted in two outstanding problems:First, the local financial system lacked of the main taxes, which resulted in financial difficulties. The local government had to rely on the land transfer of land finance to compensate for financial balance of payments gap, which posed a threat to local financial stability and sustainability.Second, because china’s taxation of the property to maintain links is too light, the current tax system lacks of regulations of residents’incomes, which results in that China’s increasingly serious widening wealth gap cannot be effectively inhibited, which increases negative impact to building a harmonious society. And in recent years, the house price rise in a high-speed, far exceeding the purchasing power of the general population in China,which plants a hidden danger to the healthy development of China’s economic.From theory and international experience, as a property tax levied on real estate to maintain links, the real estate tax has the function of organizing incomes, adjusting income distribution and influencing the real estate market. Above all, in order to provide theoretical supports for China’s levy of real estate taxes, the introduction of real estate taxes has a positive and practical significance.Through the application of norms analysis, this paper conducted a preliminary study to the theories of the real estate tax, then applied the analysis method to compare the world’s real estate tax systems of the different countries which summed up the experience with references, and in the end this paper analyzed the purpose and feasibility of levying real estate taxes in China by the methods of qualitative and quantitative analysis, and designed the real estate tax elements of assessment.This paper starts from introducing the theories of the real estate tax, and then clarifies the definition and the nature of the real estate tax, and holds the idea that real estate tax is a property tax levied on real estate to maintain links. Then this paper classed different types of real estate taxes by imposed targets, described in detail the content of various types, then analyzed and evaluated the advantages and disadvantages of various types. And then through the literature review this paper summarizes the current research status of domestic and foreign academic circles on the real estate tax. These elements lay a solid theoretical foundation for the further study of this paper. Secondly, this paper give the current real estate tax system a deep analysis, including basic overview of our existing real estate tax system and then pointed out that the problems of the current real estate tax system, for example, the tax function is not clear positioned, types of taxes is set unscientifically and assessment elements are designed irrationally. introduces an overview of the foreign real estate tax, sums up a number of useful experiences and provides theoretical supports for the next real estate lax levy purposes, taxable elements and supporting measures.Finally, combing the reality of our country, this paper analyzes the path, purpose and possible line of the introduction of the real estate tax, and then forwards supporting measures to improve the real estate tax elements designing considering feasible policy recommendations.