The second-hand house transaction tax is an important part of the cost of buying the house, and understanding the calculation of the tax fees helps to budget well。
Taxes (paid by buyer)
First suite: 140 m2, 1% tax. Area >140 m2, rate 1. 5%。
Two flats: 140 m2, 1% tax. Area >140m2, 2% tax。
Three units and above: 3 per cent tax。
Formula: deduction = exchange x rate。
Value added tax and attachment (seller pays)
Up to two years: vat exemption. Less than two years: vat of 5 per cent and surcharge of about 0. 5-0. 6 per cent。
The two-year test: the date of registration of the property certificate or the date on which the tax will be paid shall be applied earlier。
Personal income tax (seller pays)
You are exempt from taxation。
The only five criteria are that of holding a family home for five years。
Other costs
Transaction fees: approximately $6/m2. Registration fee: approximately $80/set. Assessment fee: loan housing needs to be evaluated at approximately 0. 1 to 0. 5 per cent of the assessed price. Intermediary fees: 1-3 per cent of the bargain。
Example of calculation of taxes and fees
Housing: a total of $2 million, with an area of 100 m2, a first flat, with a five-year residence permit and only one。
Buyer's taxes and charges: = $2 million x 1 per cent = $20,000。
Seller's taxes and fees: vat and individual taxes。
(b) housing: 2 million yuan, 100 m2, first flat, less than two years of residence permit。
Buyer's taxes and charges: = $2 million x 1 per cent = $20,000。
Seller's tax: vat = 2 million x 5 per cent = 100,000 yuan, additional tax = approximately 66,000 yuan, each tax = 2 million x 1 per cent = 20,000 yuan。
Attention
The manner in which taxes and fees are to be paid may be agreed upon in the contract, and more often than not, the buyer will actually bear them. There is a clear underprice that may be approved for tax purposes. In some areas, there is a tax subsidy policy。
