“The re-sale of the inherited house requires a tax of 20% of the total house price” is an ancient super rumor. I myself have been asked by relatives, friends, classmates, and customers more than ten times or dozens of times. this problem. And whenever the government introduces some policies on the property market and individual taxes, this rumor will follow the trend and cause chaos. For example, on June 13, 2019, the State Administration of Taxation issued the “Announcement on Individual Income Taxable Income Items Applicable to Individual Income”, clarifying that “If real estate is given to others, the recipient needs to be calculated according to the “incidental income” item. Personal income tax is paid. But gifts to spouses, immediate family members, brothers and sisters do not need to pay. Those who inherit the house do not need to pay individual tax.”. At this time, a bunch of articles came out, saying, “Although you are exempt from paying a tax when you receive a house as a gift or inherit a house, when you want to sell it, you have to pay a tax of 20% of the total sale price. 1. I can’t escape fifteen!” I even passed by a real estate agency once and saw a set of second-hand housing listing information posted on the glass window that said, “Inheriting the real estate, the 20% tax will be borne by the buyer!”. How to pay the tax on the re-sale of the inherited house or the donated house? Is there a “20% tax on the total house price”? What is the legal basis? This kind of professional question really cannot be answered by everyone. You must listen to the professional answers of lawyers. 1. Is there a “20% personal tax on the total house price”? Conclusion: There is indeed a “20% personal tax”, but the total house price is not the taxable income. According to the provisions of my country’s “Individual Income Tax Law”, the income from the transfer of property shall be subject to personal income tax, and the applicable tax rate is 20%. The difference between the transfer income and the original value of the property shall be regarded as the taxable income. This is actually very easy to understand. I bought a house for 1 million, sold 2 million, and earned 1 million. How much income I earned. If I sell it for 1 million, there will be no income without making money, and I don’t need to pay income tax. . As for why there is such a rumor that “20% of the total price of the transfer of personal tax”, I believe that many people think that the inherited or donated real estate is obtained without compensation, so the original value of the property is 0. Therefore, when paying income tax, there is no difference between the transfer income and the original value of the real estate, and the transfer income is directly used as the taxable income. There are many such claims, and rumors have formed over time. In fact, according to Article 4 of the “Notice of the State Administration of Taxation on Several Specific Issues in the Implementation of Real Estate Tax Policies” (Guo Shui Fa  No. 172), individuals will use non-purchase forms such as donation, inheritance, and divorce property division. The purchase price of the acquired house for external sale shall be determined according to the original purchase price before the act of donating, inheriting, or dividing the property of divorce. Therefore, it can be seen that when transferring the donated or inherited real estate, the original value of the real estate is calculated based on the original purchase price, not zero. Therefore, even if you pay a 20% personal tax, the 20% personal tax is calculated based on the “transfer income minus the original purchase price”. 2. The personal tax rate of 20% is too high. Can it be reduced? When some friends see this, they will feel that “Parents bought the house more than ten years or even decades ago. The house price is very low. Even if the original purchase price can be subtracted, it will not be reduced much. In fact, it is the total price of the property transfer. 20% of the country’s population is not far away, and the tax burden is too heavy!”. Is there any way to lower the applicable personal income tax rate and reduce the tax burden? Conclusion: There really are! As mentioned above, there is an important prerequisite for calculating the 20% personal tax based on the “transfer income minus the original purchase price”, that is, there must be a clear “origin purchase price”, which is estimated or when I remember to buy No amount of money is counted. At this time, the homeowner is required to provide a complete and accurate proof of the original value of the house. If it cannot be provided, the original price of the house cannot be determined, and the 20% tax cannot be calculated based on the difference. At this time, the state stipulates that the total value of the house transfer price can be calculated. 1%-3% (the specific ratio is determined by the taxation bureaus of each province and city) to determine the amount of personal income tax payable. Legal basis: “Notice of the State Administration of Taxation on Issues Concerning the Collection of Individual Income Taxes on Income from the Transfer of Individual Housing” (Guo Shui Fa  No. 108) 3. Taxpayers fail to provide complete and accurate proof of the original value of the house and cannot calculate the original value of the house correctly And taxable amount, the taxation authority may implement the assessment and levy according to the provisions of Article 35 of the Tax Collection and Administration Law of the People’s Republic of China, that is, the amount of personal income tax payable shall be assessed according to a certain proportion of the taxpayer’s income from housing transfer . The specific ratio is determined by the provincial local taxation bureau or the prefecture-level local taxation bureau authorized by the provincial local taxation bureau based on factors such as the area, geographic location, construction time, housing type, and average housing price level where the taxpayer sells the house. The transfer income is determined within the range of 1%-3%. Taking Shanghai as an example, if a complete and accurate original value certificate of the house cannot be provided, and the original value of the house and the tax payable cannot be calculated correctly, the ordinary house shall be transferred, and the personal income tax shall be assessed at 1% of the transfer income; the transfer of non-ordinary houses, The amount of personal income tax payable is determined at 2% of the transfer income. Legal basis: Operational opinions on this Municipality’s implementation of the “Notice of the State Administration of Taxation on Issues Concerning the Collection of Individual Income Taxes on Income from Individual Housing Transfers” (Hudi Shui Suo 2  No. 12) 1. Taxpayers failed to provide complete and accurate housing principles If the original value of the house and the tax payable cannot be calculated correctly, the tax shall be assessed and levied in accordance with the provisions of Article 3 of the “Notice”. For taxpayers who transfer ordinary houses and self-built houses, economically affordable houses, purchased public houses and urban resettlement houses, 1% of the transfer income shall be used to determine the personal income tax payable; for taxpayers who transfer non-ordinary houses, they shall be transferred 2% of the income is approved for personal income tax. If the inherited or donated real estate is too old and the purchase certificate cannot be found, and there is no record in the housing transaction center system, then the personal income tax can be calculated based on 1%-3% of the total price of the house transfer, and the tax burden will not be much lower. That’s it. 3. The sale of inherited or donated houses are exempt from individual tax. If they meet the statutory conditions, they can be exempted from individual tax. I believe many people know this condition, and even understand it well: the only one with full five. The so-called five-year-old only means self-use for more than 5 years, and it is the only living room for the family. Legal basis: “Notice of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Construction on Issues Concerning the Collection of Individual Income Taxes on Income from Individuals Selling Houses” (Caishuizi  No. 278) 4. Transfer to individuals for personal use for more than 5 years and is the only life of the family The income obtained from housing use will continue to be exempt from personal income tax. “Notice of the State Administration of Taxation on Issues Concerning the Collection of Individual Income Tax on Income from the Transfer of Individual Housing” (Guo Shui Fa  No. 108) 5. The individual is exempted from the individual’s income from the transfer of personal use for more than 5 years and the only living room of the family Income tax. 4. What is the starting point for self-use for more than five years? We know that in the sale of second-hand houses, the five-year period of the five-year period basically depends on the registration time of the real estate certificate, and based on this, it is judged whether the five-year period has passed. So if it is a house inherited or gifted by parents, once the property right is changed, the registration time of the real estate certificate will become the date of the inheritance or gift. If you want to meet the five-year requirement, do you have to wait another 5 years? In fact, for non-purchase housing such as donation, inheritance, divorce analysis, etc., the purchase time is determined by the time of purchase before the donation, inheritance, divorce analysis, etc., rather than the time of registration of the real estate certificate. In other words, the starting point of five full in this case is the same as the starting point of selling the house when the parents are still alive or when the parents have not donated the house. Legal basis: “Notice of the State Administration of Taxation on Several Specific Issues in the Implementation of Real Estate Tax Policies” (Guo Shui Fa  No. 172) 4. Individuals will obtain housing through non-purchase forms such as donation, inheritance, and divorce property division. The relevant provisions of the “Notice” are also applicable to sales activities. The purchase time of the house is determined according to the purchase time before the property division of donation, inheritance and divorce occurs, and the purchase price of the house is determined according to the original purchase price before the property division of the donation, inheritance, or divorce occurs. Ending: Family housing is related to the fundamentals of people’s livelihood. my country’s tax policies for individual housing, especially for properties acquired by inheritance and gifts from relatives, are more humane, whether it is taxation at the time of acquisition or collection at the time of resale. , It is biased towards the people’s consideration. In the face of such rumors and gossip, Attorney Xu reminded everyone that they must be based on facts and the law as the criterion.