Q:
What expenses of taxation are payable on transactions of secondhand properties in Shenzhen?
A:
Expenses of taxation payable include:
- Business Tax, 5% of selling price (tax-free upon sale of common house purchased by individual person and inhabited for more than 5 years; those inhabiting less than 5 years shall be taxed on the basis of entire selling price, while uncommon house shall be taxed by price difference)
- Urban Maintenance and Construction Tax, 1% of Business Tax
- Stamp Duty, 0.05% of selling price
- Individual Income Tax at 20%, Corporate Income Tax at 25%
- Formula: Income/Profits Tax = Selling Price ¨C Original Price ¨C Business Tax - Urban Maintenance and Construction Tax ¨C Stamp Duty ¨C Land Value Added Tax
- Contract Tax, 1.5% or 3% of selling price
- Land Value Added Tax , from 30% to 60%
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