How to Calculate the Transfer Taxes and Fees for a Second-hand Parking Space?
2 Answers
Parking spaces are classified as non-residential properties. During the transfer process, the buyer is required to pay a deed tax of 3% and a transaction service fee of 5 yuan per square meter. Below are some key points to note when handling the transfer of a parking space: 1. Price: The contract price for the parking space should be based on the original purchase invoice price provided by the seller. The deed tax window at the property bureau generally accepts this, resulting in a price difference of zero. With no price difference, there will be no business tax and surcharges, personal income tax, or land value-added tax. The buyer only needs to pay the 3% deed tax, a transaction service fee of 5 yuan per square meter (shared by both buyer and seller), and the seller pays a stamp duty of 0.05%. 2. Submission of Documents: When submitting documents for the parking space transfer, the buyer must provide a property ownership certificate in their name for the same residential community, as parking spaces can only be sold to owners within the same community according to regulations. 3. Issuance of Documents: When processing the issuance of documents for the parking space, the original purchase invoice for the parking space must be provided. If this invoice is missing, it must be reissued by the developer, as retrieving it from the property bureau archives can be difficult. 4. Parking Space Transfer Agreement: Some parking spaces do not have property rights but come with a 70-year usage right. These cannot be formally transferred, and no taxes or fees apply. The seller and buyer must sign a parking space transfer agreement and update the contact information with the property management. The seller should then hand over the parking space contract and invoice to the buyer.
Last year, I sold a residential parking space, and the transfer tax calculation mainly involved deed tax, value-added tax, and personal income tax. The deed tax is a basic fee, generally levied at 1%-3% of the transaction price or the government-assessed value of the parking space, with 1.5% being common in our city. Value-added tax may be exempt if the parking space has been held for two or five years, depending on local policies. Personal income tax is calculated based on the difference between the selling price and the original purchase price, and a 20% tax applies if the difference is significant. Don’t forget stamp duty and transfer registration fees—stamp duty is about 0.1% of the transaction amount. Before the transaction, it’s best to discuss tax allocation with the buyer and include it in the contract to avoid disputes. I recommend checking the latest rules with the tax office beforehand—don’t rely solely on agents; verify the details yourself for peace of mind. Ensure all required documents, such as the property certificate and ID, are ready during the transfer process, and don’t skip any steps to avoid late payments later. Also, look out for local incentives, as some areas may have new policies offering tax reductions.
