Thoughts on Some Issues of the Imposition of Real Estate Tax in China

Abstract

Along with the full realization of the unified real estate registration in China, the preparation for the imposition of real estate tax goes one step further. This paper first analyzes the expected functions of real estate tax in China, including raising fiscal revenue, improving wealth distribution and regulating the housing market. Further, the paper indicates that the imposition of real estate tax needs to be based on a national real estate information registration and management platform, which should also enable the identification of households and real-time tracking of property values built upon the unified real estate registration. Finally, this paper discusses three specific issues on revenue attribution, pilot scope, and detailed deduction method for tax exemption for the imposition of real estate tax in China providing concrete suggestions on how to impose real estate tax in China.