What taxes do I need to pay for a home sale transaction? New system vs old system

Are you a first-time buyer ready to trade? Or are you an investor buying a home? In the transaction of house sales, it can be said that the house transaction tax is a very important part. Here is a brief introduction to the current basic house tax and the difference between the new system and the old system of the real estate integration tax 2.0 !

How do I report the general housing transaction tax for buying a house?

Step 1: Confirm that the conditions are met (one of the following conditions is applicable to the old system)

● Those who acquired a house before January 1, 103.
● Those who acquired housing transactions between January 2, 2010 and December 31, 2010, and held for more than 2 years.

Step 2: Select the reporting method (choose one of two)

At present, there are two ways to declare housing transaction tax, namely "verification and identification method" and "standard identification method". When you choose the declaration method, you can choose one of these two methods.

Step 3: Online trial calculation

Then, you can go to the Ministry of Finance's tax portal to try to calculate your transaction tax amount.

Consolidation tax 2.0 new system vs old system

In addition, if you have a housing transaction, there may also be a real estate integration tax in the middle. It is recommended that you also know the difference between the new system of real estate integration tax 2.0 and the old system of 1.0 in the past!

● Increase the domestic corporate tax rate: The old version stipulates that the tax rate for the sale of real estate is 20%. The new version is adjusted to apply the "short-term transaction" heavy tax and must be held for more than 5 years before the tax rate can be returned to 20%.

● Extend the heavy tax period for "short-term transactions": from the old version of the original holdings within 1 year, the sales charge will be 45% to 2 years. Hold for more than 2 years and less than 5 years.

Include pre-sale houses into the taxation object: Heavy taxation must be applied to the sale within 5 years of holding. In the case that the general holding period of pre-sale houses is only 2 to 3 years, almost as long as investors resell pre-sale houses for profit in the short term , you have to pay 35% or 45% of the tax burden.

● Make up for the tax avoidance loophole in the old version: the new version newly stipulates that when trading unlisted or unlisted stocks or capital contribution, if the transaction amount exceeds half of the total shares or total capital contribution, and more than 50% of the company's equity or capital contribution is The composition of domestic real estate must also be included in the new version of the taxation, in order to prevent tax avoidance through the use of the name of the company's equity transfer to conduct real estate transactions.

Basic document preparation & reporting timing:

Then when you want to declare the real estate integration tax 2.0 , the documents you need to prepare include a copy of the sales transaction contract, and the relevant documents to prove the expenses you want to deduct. These two things must be prepared!

The reporting times are as follows:

- Pre-sale house transaction: Complete the declaration within 30 days from the day after the transaction day of the pre-sale house and its base
- Equity transaction: Complete the declaration within 30 days from the day after the transaction day of the shares or capital contribution deemed as real estate transaction
- General Existing Home Transaction: Complete the declaration within 30 days from the day after the registration date of the completion of the transfer of ownership of the property
- Right to use housing transaction: Complete the declaration within 30 days from the day following the day of the housing use right transaction

Further reading :
3 factors push up housing prices, and the 2.0 tax on the combination of real estate and land is still useful!
Differences and comparisons between the old and new systems of the 2021 real estate integration tax