Annex A.1 es on Property in Brazil Object payer Assessment base rate payment Exemptions IPTU (Imposto sobre a Propriedade oredial e Territorial Urbana) Urban land and buildings or corporation Market value of urban Defined by municipalities Possession (recurrent tax) Defined by municipalities ITBI (Imposto sobre Transmiss~ao de Bens Imóveis) Transfer of immovable and rights relating thereto or corporation Market value of real estate sold Defined by municipalities Transaction Property belonging to the Union, the Federal District and Municipality, churches of any denomination; political parties, including their foundations and unions of workers; education, social welfare and non-profit organizations ITR (Imposto sobre a propriedade Territorial Rural) Federal Property located outside the urban area or corporation Land value Progressive rates Possession Rural land... Under 100 hectares if located in the Western Amazon; Under 50 hectares if located in the Eastern Amazon; Under 30 hectares if located in another municipality; If the rural land is incorporated within the official program of land reform (continued) Springer International Publishing AG 2017 M. Salm, Property in BRICS Megacities, Contributions to Economics, DOI 10.1007/978-3-319-62671-0 209
210 Annex IRPF (Imposto de Renda das Pessoas Físicas) Federal ITCMD (Imposto de Transmiss~ao Causa Mortis e Doaç~ao) State Source: Author Object Income from immovable (renting or leasing) Transfer of and rights thereto payer or corporation Assessment base rate Income 2016 UptoR$ 22,499 0.0% From R$ 22,4499 to 33,478 7.5% From R$ 33,478 to 44,477 15.0% From R$ 44,477 to 55,374 15% Above 55,374 27.5% Maximum of 8% defined by the Federal State of Brazil, mostly levied at 4% payment Recurrent Transaction Exemptions If is used solely for housing the surviving spouse or heir; If the is in a rural area of up to 25 ha and its ongoing usage is the only means of sustenance for the family; If is for land reform; If the is used for approved housing programs (such as Minha Casa, Minha Vida)
Annex 211 A.2 es on Property in Russia Property Local Object payer Residences, apartments, rooms, country homes, or other structures, premises and buildings, as well as ownership shares in such Land Land plot Owners of land (organizations, individuals and individual entrepreneurs) Corporate Property Regional (50% assigned to local) Immovable and movable assets recorded in the balance sheet as fixed assets Assessment base rate Property owner Cadastral value specified in the state cadastre of real estate as of January 1 Businesses in possession of objects which are identified as taxable objects Cadastral value of the land plot as of January 1st of the tax period year Annual average value of Lower than 300,000 Rubles: 0.1% (inclusive) From 300,000 to 500,000 Rubles: 0.1 0.3 % (inclusive) Higher than 500,000 Rubles: 0.3 2.0% (inclusive) Rates are established by local legislative acts and cannot exceed the rates specified by Russian Code: 0.3% for agricultural, residential and utilities infrastructure lands; 1.5% for other types of land use rates may be differentiated according to use of land Is established by laws of the subjects (i.e. regions) of the Russian Federation and cannot exceed 2.2% of taxable value Recurrent Apartment: cadastral value minus cadastral value of 20 sq. m of total area Room: cadastral value minus cadastral value of 10 sq. m Residential building: cadastral value minus cadastral value of 50 sq. m of total area of the house Recurrent Recurrent Income Income from letting Residents Income Flat tax, 13% Recurrent Source: Author; Federal Service of Russia
212 Annex A.3 es on Property in India Property (sometimes there is a separate Vacant Land ) Object payer Assessment base rate Buildings and lands Owner, Occupier es on Income Self-occupied (excluding one ) Let-out Capital Gains s, companies, local authorities, artificial judicial persons Profit/capital gain Seller of ARV, CV, UAV Varies within tax rate corridors set by respective States Annual lettable value (ALV) minus municipal taxes paid & unrealized rent & standard deduction of 30% & interest on housing loan Transfer of less cost of acquisition and cost of improvement Sale price less cost of acquisition and cost of improvement Age below 60Yrs (2015/16): 0%: up to ` 250,000 10%: `250,001 500,000 20%: `500,001 1,000,000 30%: above `1,000,000 Property held... 3 years, individual tax rate (as per Income Slab Rates) > 3 years, 20%; reinvestments into specific fields are exempt from Capital Gains Recurrent Varies within tax rate corridors set by respective States Recurrent tax/31 July of assessment year for individuals One (continued)
Annex 213 Service on... Rent Sale of Property Wealth (abolished from Fiscal Year 2015 2016) Estate Duty (Inheritance ) Object payer Assessment base rate Rent Property under construction (construction service provided) before Issuance of Completion Certificate received Net wealth consisting of immovable and movable Abolished 1985 Paid by the buyer to the seller who deposits it with the government Size and purchase price 14% (if construction service cannot be shown separately, 25% of purchase price are tax base, taxed with 14%, resulting in an effective tax rate of 3.5%) s Net wealth (total value of assets minus debt related to assets) exceeding Rs. 30,000,000 1% in excess of Rs. 30,000,000 Recurrent tax/31 July of assessment year for individuals Vacant land, residential units let-out as Residence Single residential unit, and low cost housing (up to 60 sq. m) First house Gift Abolished 1998; however, the tax was revived partially in 2004. A new provision was introduced in the Income Act (section 56 (2)). Gift received in excess of ` 50,000 are taxable. Exempt are gifts from blood relatives Stamp Duty on Property (officially classified as tax) Property transaction Purchaser of Source: Author; Income Department, State Finance Commission Reports Rate differs from state to state, some states give concession if new owner is female. Maharashtra: 6.5% Transaction of
214 Annex A.4 es on Property in China House Property Object payer Assessment base rate Houses within cities, towns, industrial, mining districts (rural areas excluded) Foreign-invested enterprises, foreign enterprises & organizations, foreign individuals Ad valorem tax: Original value of the house minus 10 30% (¼ residual value) Gross annual rental value Proportional tax rate: Residual value 1.2% Rental value 12%, (4% for individuals that lease a house at market price) Urban Land Use All land within cities, counties, towns, industrial & mining districts Units (Enterprises, public institutions, social organizations, government offices, military) s (privately or individuallyowned businesses & other) Area of urban land occupied rates are set per year per sq. m according to city seize: 0.5 10 yuan in big cities, 0.4 8 yuan in medium-sized cities, 0.3 6 yuan in small cities, 0.2 4 yuan in county towns Possession (recurrent tax)/calculated annually and paid in instalments, time of payment is determined by the people s governments at all levels Possession (recurrent tax)/calculated annually & paid in instalments Residential housing, State organs, people s organizations, military, religious temples. Under the Department of Finance: schools, medical treatment & public health units, child-care centres, units of culture, sports & art, branches of People s Bank of China, elderly, service organizations, student hostels Privately-owned land, rental housing, government offices, mass organizations, military, religious temples Approved by Department of Finance: Urban Streets, green belts, productive land, People s Bank of China offices, civil aviation, railway, key industry (petroleum, electricity, water) (continued)
Annex 215 on the Use of Arable Land; sometimes referred as Farmland Occupation City Maintenance & Construction Land Appreciation Object payer Assessment base rate State-owned and collectivelyowned farmland Units & individuals Use of agricultural land for urban houses and non-agricultural construction purposes Average tax per sq. m: Shanghai: 9 yuan Beijing: 8 yuan Tianjin: 7 yuan Chongqing: 4.5 yuan Value added tax, consumption tax, & business tax paid (excluded consumption tax & VAT on imports) Transfer of State-owned land use rights & aboveground buildings & other attached objects Entities & individuals paying the three taxes Enterprises & individuals Certain proportion of the payment amount of the three taxes Increment value of transfer of Stateowned land use rights & above ground structures minus land transfer fees, development cost, & expenses for land improvement 7% urban area 5% county towns, towns & 1% elsewhere Four grades of progressive rates, i.e. 30%, 40%, 50% & 60% depending on the ratio of value added to the sum of deductible items Land Development (non-recurrent)/paid within 30 days upon the approval by the land administration department on the use of land The farmer revolutionary base areas, areas inhabited by minority nationalities, remote and border areas and poverty-stricken areas Transaction (non-recurrent)/paid together with VAT, consumption tax & business tax Transaction (non-recurrent): paid within limit designated by the tax authority, Within 7 days of contract signing (continued)
216 Annex Stamp Levied on securities & immovable Deed Transfers of land-use rights & ownership (house ) Income Object payer Assessment base rate Transfer of real estate (houses, buildings, & land use rights), lease of properties Entities & individuals Chinese & foreigners s with domicile in PRC Source: Author; State Administration of ation, Hong 2013 Contract price or fixed amount per document Transaction price determined in transfer contract Income obtained from transfer of, rental income Deductions: Lease yuan 800 if income less than yuan 4000; 20% if more than yuan 4000 Transfer original value and reasonable expenses Four proportionate tax rates (1, 0.5, 0.3 & 0.05 ), e.g.: 1 of the lease amount of leasing contracts 0.3 of the value of the purchase & sale Flat rate within a range of 3 5% determined by provinces & municipalities directly under central government (1% for houses less than 90 sq. m) Proportional tax rate (20%) Transaction (non-recurrent) Non-recurrent: paid within 10 days of contract signing Quarterly instalments
Annex 217 A.5 es on Property in South Africa Object payer Rates Land and improvements Landowners Market value Transfer duty Estate Duty Acquisition of legal title to a ; No transfer duty is payable if the transaction is subject to VAT Estate duty is levied on the death of a person and is not limited to residents; Certain admissible deductions from the total value of the estate are allowed Natural persons and legal entities Assessment base rate Value of the purchase price or fair value of immovable Beneficiary Dutiable amount of the estate exceeding R3.5 million Differential rates (residential, non-residential) possible but within a ratio set by national government. Ratios are set for agricultural properties (1:0.25), public service infrastructure (1:0.25) and public benefit organizations (1:0.25) Rate for all persons is on a sliding scale: 0 600,000 Rand: 0% 600,000 1 million Rand: 3% on the value above 600,000 1 1.5 million Rand: 12,000 Rand plus 5% on the value above 1 million Rand 1.5 million and above: R37,000 plus 8% on the value above 1.5 million Rand Exempt: Registered VAT vendor, Public benefit organization Recurrent Municipalities decide on exemptions and rebates Nonrecurrent Flat, 20% Nonrecurrent Nett estate in excess of R3.5 million (continued)
218 Annex Donations Capital Gains Source: Author Object payer Property Residential Value of Part of the income tax system and is based on capital gains made on the disposal of assets s, Companies, Trusts Assessment base rate Capital gain; difference between the proceeds and the base cost Flat, 20% Nonrecurrent Maximum effective rate for individuals 16.4%, companies 22.4% Nonrecurrent The first R 100,000 of the value of donated is exempt from donations tax R 2 million gain or loss on the disposal of a primary residence; annual exclusion of R 40,000 capital gain or capital loss is granted to individuals
Annex 219 A.6 Local and Central Revenue and Expenditure Assignments in China 0 0 1975 1976 1977 1978 1980 1979 1981 1982 1983 1984 1986 1985 1987 1988 1990 1989 1991 1992 1993 1994 1995 1996 1997 1998 1999 2001 2002 2003 2004 2006 2005 2007 2008 2009 2010 2011 2012 Total Revenue & Expenditure, Billion Yuan Government Revenue & Expenditure Ratio 14000 100 1 10000 8000 6000 4000 90 80 70 60 50 40 30 20 10 Total Revenue Central Government Revenue Ratio (%) Central Government Expenditure Ratio (%) Year Total Expenditure Local Government Revenue Ratio (%) Local Government Expenditure Ratio (%) Source: Author; National Bureau of Statistics China
220 Annex 2013 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008 2008 A.7 Development of Local Revenues in Sample Cities, 1999 2013 5000 4500 4000 3500 3000 2500 1500 1000 500 0 5000 Beijing 4500 Chongqing 4000 3500 3000 2500 1500 1000 500 0 2001 1999 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1999 2002 2003 2004 2005 2006 2007 2001 5000 4500 4000 3500 3000 2500 1500 1000 500 0 Shanghai Business House Property Urban & Township Land Use Deed 5000 4500 4000 3500 3000 2500 1500 1000 500 0 City Maintenance and Construction Stamp Land Appreciation Gross Regional Product Tianjin 2001 1999 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1999 2002 2003 2004 2005 2006 2007 2001 Source: Author; National Bureau of Statistics