Legal basis: When calculating the taxable income of individual income tax on the income from individual housing transfer in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), the taxpayer can deduct the original value of the house, the tax paid in the process of housing transfer and related reasonable expenses from the original valid documents such as house purchase contracts and invoices after being audited by the tax authorities. Taxpayers can not provide complete and accurate proof of the original value of the house, and can not correctly calculate the original value of the house and the tax payable, and the tax authorities will approve the collection. For taxpayers who transfer ordinary housing, self-built housing, affordable housing, purchased public housing and urban demolition and resettlement houses, the personal income tax payable shall be verified at 1% of the transfer income; For taxpayers who transfer non-ordinary housing, the personal income tax payable shall be verified at 2% of the transfer income.
For taxpayers who sell their own houses and intend to re-purchase houses at market prices within 1 year after the sale of existing houses, the personal income tax paid for the sale of existing houses shall be paid in the form of tax deposit first, and then the tax deposit shall be refunded in full or in part depending on the relationship between the amount of re-purchased houses and the sales of original houses; Income from the transfer of houses that have been used for more than 5 years and are the only living rooms for families shall be exempted from personal income tax.