Although mainland China still adopts foreign exchange controls to restrict the entry and exit of funds, for foreigners purchasing houses in the mainland, as long as they pay taxes and file tax records for external payments with the tax authorities where the property is located, the bank will not ask about the source of funds for the original purchase and will also allow the sale. The funds after the real estate are remitted abroad.
You will definitely be curious. You should pay a lot of taxes when remitting a large amount of house sales funds out of the mainland!
editor tells you, what taxes need to be paid in mainland China?
Tax issues for Taiwanese residents selling real estate in the mainland have different regulations in various places. Taking the sale of real estate in Shanghai as an example, currently the value-added tax and surcharges and personal income tax need to be paid, and land appreciation is temporarily exempted. Tax and stamp duty.
1. Value-added tax and surtax
The transfer of a house purchased less than two years ago must be paid in full at a levy rate of 5.3% (value-added tax and surcharge tax rate). However, if it is an ordinary house purchased for more than two years, it is exempted. Pay value-added tax; in addition, for the sale of non-ordinary housing that is more than two years old, the difference between the sales amount and the purchase price is 5.3% (value-added tax and additional tax rate).
2. Personal income tax
If an individual transfers the family’s only residence for five years or more and it is the family’s only residence, he or she is exempt from paying personal income tax. However, if the transfer is less than five years or the family’s only residence for five years or more, the profit will be calculated according to the income tax rate. Personal income tax is paid at the rate of 20%. If the accurate purchase amount of the real estate cannot be provided, personal income tax is paid at 1% of the total amount for ordinary residences, and 2% of the total amount for non-ordinary residences.
In the mainland second-hand housing market, there is an unspoken rule that all taxes and fees incurred by the landlord when selling the house are generally borne by the buyer.
What taxes do I need to pay in Taiwan?
Strictly speaking, Taiwanese residents are required to declare taxes in Taiwan whether they transfer, donate or inherit real estate in the mainland. Among them, gift tax and inheritance tax must be declared within a certain period, and the tax rate falls at 10% depending on the value. -20% between different levels, and the income from the disposal of real estate in the mainland must be regarded as equivalent to the income in Taiwan. You must actively declare personal comprehensive income tax in May of the following year. The tax rate falls between 5% and 40%. However, in practice, few people will take the initiative to declare.
It should be noted that, because individuals repatriate funds from the Mainland Area, income from sources in the Mainland Area should be incorporated into the total comprehensive income tax and taxed in accordance with Article 24 of the Ordinance on Relations between the People of the Taiwan Area and the Mainland Area. As follows:
This table is for New Taiwan Dollars
It is worth mentioning that income in mainland China is often misunderstood as overseas income (overseas income is one of the six major tax bases in the minimum tax system, and the basic income does not reach NT$6.7 million) No need to pay basic tax).
A Taiwanese friend once remitted the funds from the sale of his house directly back to Taiwan. As a result, he had to pay 40% income tax, which made him doubt his life. Of course, there are also legal ways to save taxes. Friends in need can seek consultation from experts recommended by the editor, or entrust experts to handle the sale of your property and analyze in detail how to remit funds.
Residential and commercial real estate He Jianqun Cross-Strait real estate expert
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