Beijing: Including the Unit Price of Housing as a Deed Tax Preference

The Beijing Housing and Urban Construction Commission responded to “protected by luxury houses” rights owners, the new deed tax concession plan is still within the framework of the three taxation preferential standards stipulated by the Ministry of Housing and Urban Development, but will be adjusted to the regional average unit price of housing transactions this year according to the total regional housing price calculation. The specific plan is expected to be introduced by December.

The owner of the Beijing Five Rings has been dissatisfied with the “mansion” and has demanded adjustment of the deed tax standards for rights protection activities for some time. Today, the person in charge of the Beijing Municipal Housing and Urban Construction Committee responded that the new plan will include the unit price of housing in the deed tax preferential standard.

On November 22, 2011, the owners of the 10 communities in Beijing's Wuhuan, including the oceanside party and the Poly Lion House, gathered in the Beijing Construction Commission and asked the Beijing Construction Commission to give a timetable and specific plan for adjusting the deed tax incentives.

The staff of the Beijing Housing and Urban Development Committee who drafted the document stated to the rights owners that the new plan is still within the framework of the three taxation preferential standards stipulated by the Ministry of Housing and Urban Development. However, the original average price of the housing transaction will be adjusted according to the regional total housing price. The plan is expected to be introduced before December, and the owners will use the tax payment date as the basis for collecting time. 70% of the owners in Beijing can enjoy tax benefits.

The owners of the communities outside the five-ring community are bothered by the “3% deed tax” to be paid when purchasing a house. According to the current regulations, if an individual purchases an ordinary house and the house belongs to the only house in the family, the deed tax will be halved; if the house is less than 90 square meters, the deed tax shall be levied at a rate of 1%. However, it is necessary to satisfy the three conditions of “the volume ratio is above 1.0, the single construction area is below 140 square meters, and the actual transaction price is less than 1.2 times the average housing price in the same area”.

According to the “Circular on Announcement of the Average Housing Prices for Beijing Enjoying Preferential Policies” issued by the Beijing Municipal Construction Commission at the end of 2008, “the total price within the Third Ring is *** 2.15 million yuan/set, and between the Third Ring and the Fourth Ring is RMB 1.75 million/ Sets, between the four rings to the Fifth Ring 1.65 million yuan / set, outside the five rings 1 million yuan / set "is the price of housing to enjoy preferential policies. This means that as long as there are more than 1.2 million houses outside the Five Rings, tax benefits cannot be enjoyed.

However, “House prices have skyrocketed since 2008, and the number of houses in a residential area is more than 1.2 million. We are all in the 80s and live in small-sized apartments. Why should we pay taxes in accordance with the standard of luxury housing?” Many owners expressed dissatisfaction.

From November 12th onwards, the owner of the community in Beijing’s Wuhuan District initiated the “Responsible for a Mansion Relay” from the Poly Group’s residential district in the South Fifth Ring.