2. Business tax: 5% of the property value, paid by the donor. It does not include gifts to legal heirs, dependents, supporters and inheritance.
3. Deed tax: 3% of the property value shall be paid by the donee. Except that the couple changed their names.
4. Stamp duty: 0.05%, to be paid by both parties. Individuals who donate real estate for free are required to pay the full deed tax (the current tax rate is 4%) and stamp duty. Personal income tax is exempted in three cases: the house is donated to immediate family members, dependents or dependents, and the legal heir of the house heritage. If the donee transfers the property again within 5 years, it needs to pay business tax. Business tax may be exempted if it has been levied for more than 5 years. The donee must pay 20% personal income tax when transferring the property. The calculation formula of personal income tax payable for selling houses in normal transactions is: personal income tax payable ×20%. Taxable income, income from property transfer-original value of real estate-reasonable expenses.
Legal basis: People's Republic of China (PRC) Tax Collection and Management Law.
Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.
Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.
Article 3 The collection, suspension, reduction, exemption, refund and supplementary payment of taxes shall be carried out in accordance with the law. Where the State Council is authorized by law, it shall be implemented in accordance with the provisions of administrative regulations formulated by the State Council.
No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.