The taxes required at the receiving stage and a future transfer stage for individually gifted houses, as well as whether they qualify for tax incentives etc., are issues of urgent concern to many people who have received or are planning to receive gifted houses. In order for grassroots tax officials to correctly collect taxes on individually gifted houses and for both parties involved in house gifting to legally fulfill their tax obligations, the author has consulted relevant laws and regulations to provide a detailed introduction to the tax handling of individually gifted houses.
I. Tax treatment at the acquisition stage
(A) Exemption from business tax for individual house gifting
According to Article (1) of the first clause in the "Notice of the State Administration on Issues Related to Strengthening the Administration of Taxation on Real Estate Transactions and Individually Gifted Real Estate" (Guoshui Fa [2006] No. 144), individual house gifting is exempt from business tax. However, the following genuine documents must be provided to the local tax department to process the business tax exemption procedures:
1. For inherited real estate, the inheritor shall provide...