Public rental tax burden or encourage private enterprises to participate

Jahai, Pei Qingquan September 28 Night, the Ministry of Finance's website issued "on the support of public rental housing construction and operation of the relevant tax preferential policy notice" (hereinafter referred to as "notice"), which proposed a three-year relief of public housing construction and operation of 6 tax concessions.　　Chen Baoqun, deputy dean of the Joint Research Institute, said that from September 27, the Ministry of Housing and Ministry of land two ministries and departments issued a joint policy to strengthen real estate control, the relevant implementation of the "Country 10" ministries issued a joint policy, is a daily new deal speed launch.　　The above "notice" is also issued jointly by the Ministry of Finance and the State administration of taxation two ministries.　　"I love my Family" vice President Hu Jinghui, who has been involved in Beijing's public rental promotion work, said notice "The proposed tax relief measures will be conducive to attracting private enterprises to participate in public rental housing construction and operation, especially insurance funds, such as the pursuit of low risk, low return of funds to participate in the construction of public housing," notice "for it to solve a part of the income barrier.　　or encourage private enterprises to participate in public rental housing public rental tax preferential policies to private real estate enterprises to intervene in public rental housing construction and operation opened a door.　　September 28 afternoon, Green Town Group vice Chairman Luo Zhao Ming is on a business trip, heard the Ministry of Finance and other two ministries and committees issued a "notice" policy of the news, appears very excited. Luo Zhao said that these policy concessions, although not to the extent developers expect, but has let developers see the market prospects.　　Whether for social responsibility, or for the sake of stabilizing the cash flow of enterprises, many developers have advantages in development and construction will consider intervention in public rental housing development. July 2010, Greentown and Shenyang South New district signed the housing construction orders, the land to 600 yuan per square meter purchased, 500,000 square meters to build the protection of housing, to 2750 yuan per square metre of the price back to the government.　　Overall, the profit margin for the project was only 3% to 5%, well below the average profit margin of 20% industries. "Notice" mentioned that in the next three years, public rental housing construction land and public rental after the completion of the land, exemption from the use of town tax.　　In other words, each square metre can pay a few yuan to dozens of yuan unequal tax. The stamp duty on the construction of public rental housing for public rental management units shall be exempted.　　This part mainly includes five out of 10,000 of construction engineering investigation and design contract cost and three out of 10,000 stamp duty of construction and installation project contract. The Public rental management unit to buy housing as a public rental, exemption from the deed, stamp duty, the public rental rental agreement between the two parties involved in the signing of the stamp duty shall be exempted. Public rental management units to buy housing as a public rental of the deed and stamp duty are 5% and five out of 10,000 respectively.　　and rental of public rental tax for the lease amount of 1 per thousand.　　At the same time, "notice" also put forward the public rental housing acquisition, the collection of housing tax concessions. In the view of Yang Ping, executive director of Everbright Ashmore, the "notice" proposed in the tax concessions, are conducive to the holding of public rental housing and operators, tax relief can improve the operating rate of rental housing, to achieve a stable fund toDegree of acceptance. Yang Ping in Everbright Ashmore and the joint venture to establish commercial real estate company press conference told reporters, insurance funds, banks and other stable funds to pursue a smooth cash flow of funds, is very active, the scale is very large. These funds do not pursue high returns but require low risk.　　The only way to achieve inflation and control risk is to invest in commercial real estate and public rental housing.　　Implementation of the "State 10" serial measures Shanghai easy to live real estate Research department Minister Yang Hongxu said, "notice" the significance lies in the recent continuous implementation of the "Country 10" policy, and next city. September 27, the Ministry of Land and Resources and the Ministry of Housing jointly issued the "on the further strengthening of real estate and construction management regulation of the notice", it is proposed that the local government must implement the land of affordable housing, formulate good land planning, in the lease before the sale of the units, the size of affordable housing.　　In the case that the guarantee housing does not complete the land supply, no land shall be provided to the upscale room. This is considered to the public rental housing, led by the provision of protection.　　And September 28 by the Ministry of Finance and the State Administration of taxation jointly issued the "notice" content, and again for public rental housing construction and operation of the provision of tax relief.　　Hu Jinghui said that in the middle of 2009, Beijing Housing Security Office has organized the Beijing state-owned real estate enterprises and some institutions to participate in public rental housing construction, when the relevant enterprises entrusted to the third party to enter the public housing business feasibility study. The results show that even if the operation management is good, the rate of return of public rental projects is only 3%, if the operation management is not good, there is the risk of losing money.　　In this case, the state-owned real estate enterprises have said that temporarily do not invest in public rental housing. Chen Baoqun said that public rental housing if only rely on central finance and local financial investment construction, will be unsustainable.　　The local government is lack of enthusiasm for the public housing project whether it is investment construction or holding operation.　　However, the central mass push public rental housing is very strong, since June this year, the State Council has held three consecutive public rental housing as the theme of the Conference to promote public rental housing construction.　　At present, local construction of public rental housing mainly local state-owned enterprises, private enterprises rarely participate. Hu Jinghui said that public housing construction has two problems: first, the source of land and cost. The local government is unwilling to give public rental housing, nor is it willing to allocate land free to public rental housing.　　The method adopted by Beijing City is the annual land rent system, or the collective land construction to share the way, in order to reduce land costs, if the land cost is not reduced, public rental housing can not guarantee the income, followed by tax relief, especially to reduce the annual pay for urban land use tax, each square meter to the public rental let 10 yuan. "Notice" after the content issued, tax relief issues in 3 years for the temporary effective. Basically solves the problem of the tax burden of the public rental operation. The problem of land use, in addition to the Ministry of Land and Resources issued by the need for the notice of the land, the local government can take ownership of the annual rent system, collective land transfer shares and other means,Reduce the cost of land use for public rental housing. The "notice" also stipulates that the rental income obtained from operating public rental housing is exempt from business tax and real estate tax. At present, sales tax and property tax account for 5% and 12% of rental income respectively. As a result of the provision of rental rent can not be higher than the market rental price of 70%, in the current rental ratio so low, operating public rental housing can not bring too much profit. This reduction can effectively improve the income of public rental operators, improve their enthusiasm for operating public rental housing.　　It will also encourage more private capital to be put into public rental operations. "Chain Home Real Estate" chief analyst type builded with that, due to tax concessions, a large number of public rental housing market for the overall rental prices in Beijing can play a better role in stabilizing.