Urban maintenance and construction tax law, deed tax law is coming!

Xinhua News Agency reporter Yu Qiongyuan

Urban maintenance and construction tax law, deed tax law is coming! The two tax laws passed by the 21st session of the Standing Committee of the 13th National People's Congress on the 11th have further promoted the process of "tax legality" in China.

What are the changes of the urban construction Tax Law compared with the Provisional Regulations on Urban Construction Tax? According to Wang Jianfan, director of the tax Administration Department of the Ministry of Finance, the urban construction tax law has cancelled the special purpose provisions.

"With the continuous reform of the budget system, since 2016, the urban construction tax revenue has been arranged by the general public budget and is no longer designated for special purposes." At the same time, considering that the allocation and use of tax revenue is a matter of fiscal system and budget management, it is generally not stipulated in the tax law, so the urban construction tax law no longer stipulates the special purpose of urban construction tax." Wang Jianfan said.

At the same time, the urban construction tax law has increased the relevant provisions of the VAT rebate involving the urban construction tax.

Wang Jianfan said that in order to avoid increasing the burden of tax refund enterprises, in 2018, the Ministry of Finance and the State Administration of Taxation issued a clear document, allowing taxpayers who implement VAT tax rebates at the end of the period to deduct the refunded value-added tax from the tax calculation basis for urban construction tax. The urban construction Tax law elevates the current provisions into law, and clearly deducts the value-added tax amount of the end-of-period tax rebate from the tax calculation basis of the urban construction tax.

In addition, in order to regulate the collection and management of urban construction tax, the urban construction tax law clearly stipulates the occurrence time of the urban construction tax obligation, the withholding agent and the occurrence time of the withholding obligation.

In order not to increase the tax burden of taxpayers, the urban construction tax legislation has shifted the current tax rate provisions. Considering that the urban construction tax is a local tax and the actual situation varies from place to place, the urban construction tax law does not make uniform provisions for the location of the taxpayer, and the provinces, autonomous regions and municipalities are authorized to specify it.

"To determine the location of the taxpayer is to determine the specific applicable tax rate of urban construction tax, and the tax place is not a concept, such as offshore oil and gas exploration and development in the sea, does not belong to the urban area, county or town, applicable 1% tax rate, but its tax place is not at sea." Wang Jianfan said.

Compared with the interim regulations on deed tax, Deed Tax Law appropriately expands preferential tax policies. Wang Jianfan said that the Deed tax law basically continued the provisions on tax incentives in the Interim Regulations on deed tax, and at the same time added other preferential tax policies: in order to reflect the support for public welfare undertakings, it added provisions on exemption of deed tax for non-profit schools, medical institutions and social welfare institutions to acquire land and houses for office use, teaching, medical treatment, scientific research, old-age care and relief.

Tax filing is simpler! The deadline for tax declaration shall be declared within 10 days after the occurrence of the tax obligation stipulated in the Interim Regulations on Deed Tax, and the tax shall be paid within the time limit approved by the tax authorities, and shall be amended to be declared and paid before the registration of land and house ownership.

The deed tax law also added tax refund provisions. In order to protect the rights and interests of taxpayers, the Deed Tax Law stipulates that before a taxpayer goes through the registration of land or house ownership according to law, if the contract is not effective, invalid, revoked or cancelled, the taxpayer may apply to the tax authorities for a refund of the tax already paid, and the tax authorities shall handle the tax refund according to law.

Wang Jianfan said that the deed tax law combines deed tax declaration and payment time into one, reducing the burden on taxpayers, promoting tax compliance and improving the efficiency of collection and management.

Wang Jianfan said that the deed tax law authorizes provinces, autonomous regions and municipalities to determine differential tax rates for different subjects, different regions and different types of housing ownership transfers. This regulation reflects the reform ideas of the sound local tax system, gives local tax administration authority, and is conducive to mobilizing the enthusiasm of local governments to strengthen tax administration, and promotes the healthy development of the real estate market due to city policies.

(Xinhua News Agency, Aug. 11)