Accurate transaction values and the correct tax base are central to a property-transfer explainer published by the Government News. It separates individual and corporate obligations and stresses responsibility for truthful information supplied to tax authorities.
Percentages apply to different bases
The article describes individual income tax at 2% of the transfer price. Where a contract value is below the relevant provincial land or registration-fee valuation, it says the state-prescribed value becomes the basis.
It describes the buyer’s registration fee at 0.5% of property value, using the contract price when that exceeds the provincial valuation. For businesses, property-transfer income is declared separately, with the article giving a 20% corporate-income-tax rate on taxable income.
That income base deducts the property’s cost and related eligible expenses from the selling price. The VAT explanation gives 10% on the transfer value after the permitted land-value deduction. The four percentages therefore should not be applied as though they shared one calculation base.
Filings depend on the transaction type
The report distinguishes certified properties from future housing or buildings when discussing filing periods. It also separates registration filings from fee-payment deadlines following a tax notice.
Potential responses to violations include reassessment, administrative penalties or referral where there are signs of a crime, depending on the conduct. Its stated next task is truthful, timely documentation under the corresponding procedure. The explainer is not an announcement that all rates change on publication day and does not determine an individual taxpayer’s case.