What is personal income tax on housing?

Personal income tax on housing is the tax that sellers need to pay when they make profits in the process of buying and selling second-hand houses. It is called property tax, and its tax rate is 20% of taxable income. The tax payable needs to subtract the cost price of the last house purchase from the income from the sale of real estate. If it is impossible to prove that the relevant purchase bill voucher is provided, the personal income tax of the property will be levied at 1% of the transaction amount. If this second-hand house has been purchased for more than five years and is the only house under the owner's name, it can be exempted from personal income tax.

However, personal income tax is also paid by the seller according to the regulations, but in fact most of it is paid by the buyer.

Who will bear the personal income tax on housing?

When buying a house, the individual tax is borne by the seller. There is a formula for calculating individual income tax on houses, and the formula is: (the selling price of houses-the original value of houses-taxes related to deed tax-reasonable expenses) ×20%. When purchasing commercial housing, you should pay deed tax, personal income tax and other taxes in accordance with relevant national laws and regulations. Personal income tax is generally paid by the purchaser, and it is not required to be paid after five years of purchase. If the owner sells his house and buys it back at the market price within one year, he will have to pay personal income tax on the sold house.

How to declare and refund personal income tax on houses?

1. Taxpayers apply to the tax collection authorities, fill in the deed tax refund application review form, and submit relevant materials as required.

2. Those who meet the tax refund requirements will go through the tax refund formalities within 10 days. For the refunded part, the tax refund certificate will be issued after the tax payable is re-approved and the tax payment certificate is issued.

3. Before applying for tax refund, you must have a written application for tax refund, and you can only apply for tax refund if you hold a house sales contract. If you only refund some taxes and buy a new house within one year, you can apply for the unpaid tax, apply to the tax collection authority, get the application form and fill it out according to the regulations.

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