3. Property inheritance without clear provisions in the Tax Law

(1) The VAT policy applies to inherited goods and intangible assets

The Provisional Regulations on Value-added Tax and the Rules for its Implementation provide that: Any entity or individual selling goods or processing, repairing and repairing services (hereinafter referred to as "services"), selling services, intangible assets, immovable property and imported goods within the territory of the People's Republic of China shall be a taxpayer of value-added tax and shall pay value-added tax in accordance with these Regulations; The following acts of a unit or individual industrial or commercial unit shall be regarded as selling goods:... The goods produced, processed or purchased by the company shall be given to other units or individuals free of charge.

In the VAT policy provisions, there is no clear VAT policy for inherited goods. In the author's opinion, the inheritance of goods should not belong to the scope of VAT taxation, there are mainly three reasons: first, inheritance and sales are two different concepts; Second, regarded as sales tax subject does not include "other individuals", even if the inheritance and gift equal, can not be regarded as the inheritance of the category of sales; Third, traditionally, VAT has never been levied on inherited goods.

(2) Inherited intangible assets (excluding land use right) shall be subject to VAT policy

Finance and taxation2016:36As stipulated in Document No. : Units and individuals selling services, intangible assets or immovable property (hereinafter referred to as taxable activities) within the territory of the People's Republic of China are VAT taxpayers and shall pay VAT in accordance with these Measures; An entity or individual transfers intangible assets or immovable property to another entity or individual free of charge, with the exception of those used for public welfare undertakings or targeted at the public.

From the current tax policy, it is difficult to see whether the inheritance of intangible assets (excluding land use rights) is subject to VAT. The author believes that from the principle of tax law and previous custom, there should be a difference between inheritance and transfer, so VAT should not be imposed.

(3) Individual income tax policies shall apply to inheriting property other than houses
According to the provisions of the Individual Income Tax Law of the People's Republic of China and its implementing regulations, individual income tax is levied only on the explicitly listed taxable income items. Therefore, no individual income tax shall be levied on the heirs and inheritors involved in inheriting other property other than the house.

4. Tax obligations stipulated in the Inheritance Law

The "Inheritance Law" stipulates that: Inheriting an estate shall pay off the taxes and debts payable by the decedent according to law, and the payment of taxes and debts shall be limited to the actual value of his estate, except for the part exceeding the actual value of the estate voluntarily repaid by the heir; A decedent who disclaims inheritance may not be liable to repay the taxes and debts payable by the decedent according to law; The execution of a legacy shall not prevent the payment of taxes and debts legally payable by the legatee.

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