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Estate tax is paid on the property left by the decedent or owner of the property at the time of death
impose
Object: a dynamic property tax levied on the heirs of an estate at one time.
[1]
- Chinese name
- Inheritance tax
- Foreign name
- Inheritance tax
- Basis for sentencing
- Economic law
catalogue
- 1definition
- 2Types of estate tax
- ▪(1) Comprehensive "Total Estate Tax System"
- ▪(b) Separate inheritance tax system
- ▪(3) Mixed inheritance tax system
- 3System design of inheritance tax legislation in our country
- ▪(1) Taxpayers of estate tax and gift tax
Estate tax is a kind of dynamic property tax which is levied on the inheritors of the estate at the time of the death of the decedent or the property owner.
According to the differences of estate tax payers and specific taxation systems, there are mainly three types of inheritance tax levy modes in the world:
"Total estate tax system" is generally referred to as "estate tax system" or "death tax system". In this tax system, the death is the nominal taxpayer and the executor or administrator is the actual taxpayer, and the entire net estate left by the death (that is, the balance of the total estate after deducting various deductions) is taxed at a progressive rate. Its main feature is that the estate tax design does not consider the destination of the estate, and the tax rate design is based on the net amount of the estate, without considering the number of heirs and the close relationship between the heir and the decedent. In theory, the death is the duty payer, which has the advantages of simple tax system, guaranteed tax source, convenient collection and management, and low tax cost. Its disadvantage is that it is unfair and unreasonable. Currently, the United States, the United Kingdom, Korea, and Singapore have a total estate tax system.
The "inheritance tax system", also known as the "inheritance tax system", is that after the death of the decedent, the estate is first distributed to the heirs, and then each heir is the taxpayer, and the inheritance tax is levied on the estate that is divided. This mode takes each inheritor as the duty payer, the tax rate generally adopts progressive tax rate, and the level of tax burden considers the close and distant relationship between the heir and the decedent. Its main feature is that in the inheritance processing, it is manifested as "first division and then tax". The inheritance tax system is more complicated than the total inheritance tax system, and the collection cost is higher, but it is more fair and reasonable. Germany, Japan, Poland, the Netherlands, Bulgaria and so on are the main countries that implement the inheritance tax system.
The mixed estate tax system means that the total estate tax is levied on the estate of the decedent first, and then the inheritance tax is levied on the property inherited by each inheritor as the taxpayer. This mode is a comprehensive application of the above-mentioned two modes of taxation, which is not only conducive to source control, but also reflects tax fairness, but the practical operation is not easy. Its main feature is to adopt "tax first and then tax" in the inheritance processing. At present, countries that adopt a mixed inheritance tax system include Italy, Canada, the Philippines, Iran and so on.
Considering that the legal system of property inheritance, property registration and property evaluation is not perfect and the level of tax collection and administration is low, the total estate tax system should be adopted in our country. In this way, it is conducive to monitoring tax sources, facilitating collection and management, and preventing tax evasion. At the same time, because inheritance tax and gift tax are two closely related taxes, they should be levied at the same time and implemented in a supporting manner to achieve effective results. Corresponding to the total inheritance tax system, the gift tax system should also be adopted in our country, so as to achieve the effect of taxation, which is not only simple and easy, but also can effectively prevent tax evasion.
Based on China's national conditions and drawing on the successful experience of foreign advanced estate tax and gift tax tax systems, the legislative design of estate tax and gift tax in China is as follows:
The estate tax and gift tax in our country should adopt the general bequest tax system. The theory of inheritance tax (nominal) tax liability is the owner of the property left behind, that is, the deceased. The principle of combining personalism and territorialism should be adopted to define the scope of the taxable property of the taxpayer, which can refer to the standard of determining whether the taxpayer is a resident or a non-resident in the individual income tax. For resident taxpayers, estate tax shall be levied on all their estates within and outside China, and for non-resident taxpayers, estate tax shall be levied on their estates within China. But at the same time, it must be coordinated with the provisions of Article 36 of the Succession Law of the People's Republic of China. Article 36 of the Act stipulates that the law of the place where the decedent resides shall apply to movable property and the law of the place where the immovable property is located shall apply to immovable property.
The specific duty payer of estate tax may be determined in the following order: (1) If there is an executor, it is the executor; (2) If there is no executor, the heir and legatee; (3) If there are no such two categories of persons, the estate administrator shall be selected according to law. The obligation to pay gift tax is the donor.
Estate tax shall be levied on the property left by the decedent at the time of death. It specifically includes all movable, immovable and intangible property of value. Gift tax is levied on the property donated by the donor to another person during the tax year.
The tax rate of estate tax and gift tax should be excessive progressive tax rate, not too many levels, to about 5 levels is appropriate, the tax rate should be slightly higher than the personal income tax rate. Among them, the tax rate of gift tax should be slightly higher than that of estate tax, so as to prevent property owners from taking advantage of the convenience of low tax rate to disperse their property several times in a planned way, so as to pay less or no estate tax.
Inheritance tax is calculated on the basis of the balance of the total amount of the estate after deducting legal deductions and deductions, and gift tax is calculated on the basis of the balance of the value of all the property donated by the donor to others within the tax year after deducting certain legal deductions.
Drawing on the practice of most countries in the world, the following deduction items should be considered in the calculation of the tax payable for inheritance tax and gift tax in China:
1. Taxes, fines and late fees payable by the decedent before his death and the donor before the gift.
(2) Funeral expenses at the time of the decedent's death, and related expenses incurred by both parties as a result of the donation.
3. The cost of executing the will and administering the estate.
4. Give donations to public welfare and charitable organizations that do not exceed a certain amount limit.
(5) After the death of a serving civil servant, his heirs receive death benefits, etc.
(6) The undivided housing and other property shared by the spouse, children and parents of the decedent before his death.
7, for people with disabilities or living difficulties or recipients to give certain special deductions.
8. Provide different tax allowances for heirs with different blood relationships with the decedent.
9. Paid overseas estate tax and gift tax.
10. Other deductions provided by law.
In addition, a tax threshold may be set.
To collect estate tax and gift tax, the following systems shall be established and improved:
(1) Implement the citizen income declaration and property registration system
Citizens' income should be "two-way declaration", one is that individual citizens take the initiative to declare their income to the tax department, and the other is that units and individuals who pay salaries to individuals should also declare the amount paid to the tax department. The adoption of "two-way declaration" is conducive to the tax authorities to grasp the personal income and property status and avoid the loss of tax sources. At the same time, we should renew the traditional concept of property and gradually implement the real name registration system of personal property to prevent tax evasion.
2. Improve and perfect all kinds of property evaluation systems and systems
The key of levying inheritance tax and gift tax is to evaluate all kinds of real estate, important movable property and other property rights scientifically and reasonably, and to determine the value of taxable estate and gift property correctly. The tax authorities should make full use of the existing appraisal forces of relevant departments and social intermediaries, and set about establishing a high-level, lean and non-profit property appraisal institution, so as to reduce the cost of property appraisal on the whole, and maintain the scientific, authoritative and fair assessment results, so as to lay a foundation for the standardized collection and administration of inheritance tax, gift tax and other taxes.
3. Establish and improve the mutual cooperation and coordination system with relevant departments
The taxpayer of estate tax shall, after the death of the decedent, declare and pay tax to the tax authorities within the statutory time limit, and the taxpayer of gift tax (the donor) shall declare and pay tax annually. Any department related to the management of personal property shall not go through the corresponding procedures for the transfer of property without the certificate of payment or exemption of inheritance tax or gift tax issued by the tax authority.
4. Other regulations
Estate tax and gift tax shall be collected and administered by the local tax authorities in the place where the taxpayer or the immovable property is located. Taxpayers shall declare and pay tax to the local competent tax authorities within the legal time limit from the date of the inheritance or the date of the donation. Estate tax and gift tax shall in principle be paid in monetary form in a lump sum, taxpayers in monetary form or lump sum payment has difficulties, can be paid in kind or pay in installments.
