Deed Tax Law of the People's Republic of China

Interim Regulations of the People's Republic of China on Deed Tax

Issuing authority: Standing Committee of the National People's Congress

Document number: Chairman's Order No. 52

Date of Issue: August 11, 2020

Effective date: September 1, 2021

Issuing authority: State Council

Document number: State Council Order [1997] No. 224

Date of Issue: July 07, 1997

Effective date: October 1, 1997

Article 1: The transfer of ownership of land and houses within the territory of the People's Republic of China, and the units and individuals who take over are taxpayers of the contract tax, and shall pay the contract tax in accordance with the provisions of this law.

Article 1: The transfer of land and house ownership within the territory of the People's Republic of China, and the units and individuals who take over are taxpayers of the contract tax, and shall pay the contract tax in accordance with the provisions of these regulations.

Article 2: The transfer of land and house ownership in this law refers to the following acts:

(1) Assignment of land use rights;

(2) The transfer of land use rights, including sale, gift, and exchange;

(3) House sale, gift and exchange.

The transfer of land use rights in Item 2 of the preceding paragraph does not include the transfer of land contractual management rights and land management rights.

Where the ownership of land or houses is transferred by means of investment (shareholding), debt repayment, transfer, reward, etc., the deed tax shall be levied in accordance with the provisions of this law.

Article 2: The transfer of land and house ownership in these regulations refers to the following acts:

(1) Assignment of the right to use state-owned land;

(2) The transfer of land use rights, including sale, gift and exchange;

(3) House trading;

(4) Housing donation;

(5) House exchange.

The transfer of land use rights in Item 2 of the preceding paragraph does not include the transfer of rural collective land contractual management rights.

Article 3: The deed tax rate is 3% to 5%.

The specific applicable tax rate of the deed tax shall be proposed by the people's government of provinces, autonomous regions, and municipalities directly under the Central Government within the tax rate range specified in the preceding paragraph, reported to the Standing Committee of the People's Congress at the same level for decision, and reported to the Standing Committee of the National People's Congress and the State Council for the record.

Provinces, autonomous regions, and municipalities directly under the Central Government may determine differential tax rates for the transfer of ownership of different subjects, regions, and types of housing in accordance with the procedures prescribed in the preceding paragraph.

Article 3: The deed tax rate is 3-5%.

The applicable tax rate of the deed tax shall be determined by the people's government of the province, autonomous region, or municipality directly under the Central Government within the range specified in the preceding paragraph in accordance with the actual situation in the region, and shall be reported to the Ministry of Finance and the State Administration of Taxation for the record.

Article 4: Taxation basis for deed tax:

(1) The transfer and sale of land use rights, the sale of houses, and the transaction price determined in the contract for the transfer of land and house ownership, including the currency to be delivered and the price corresponding to the physical and other economic benefits;

(2) The exchange of land use rights and house swaps is the difference between the exchanged land use rights and house prices;

(3) Land use right donation, house donation, and other non-price transfers of land and house ownership are the prices determined by tax authorities in accordance with the law with reference to the market prices of land use rights sales and house sales.

If the transaction price and swap price difference declared by the taxpayer is obviously low and there is no valid reason, it shall be verified and determined by the tax authority in accordance with the "Tax Collection and Administration Law of the People's Republic of China".

Article 4: Taxation basis for deed tax:

(1) The transaction price is the transfer of state-owned land use rights, the sale of land use rights, and the sale of houses;

(2) The donation of land use rights and house donations shall be determined by the expropriation agency with reference to the market prices of land use rights sales and house sales;

(3) The exchange of land use rights and house exchanges is the difference in the price of the exchanged land use rights and houses.

If the transaction price in the preceding paragraph is significantly lower than the market price and there is no legitimate reason, or the difference in the price of the land use rights or houses exchanged is obviously unreasonable and there is no legitimate reason, the expropriation agency shall check and determine with reference to the market price.

Article 5: The tax payable of deed tax is calculated by multiplying the tax basis by the specific applicable tax rate.

Article 5: The deed tax payable shall be calculated and levied in accordance with the tax rate stipulated in Article 3 and the tax calculation basis stipulated in Article 4. Calculation formula of tax payable:

Tax payable = tax basis × tax rate

The tax payable is calculated in RMB. If the transfer of land and house ownership is settled in foreign currency, it shall be converted into Renminbi at the central rate of the Renminbi market exchange rate announced by the People's Bank of China on the day when the tax liability occurs.

Article 6: Deed tax is exempted under any of the following circumstances:

(1) State organs, public institutions, social organizations, and military units take ownership of land and houses for office, teaching, medical treatment, scientific research, and military facilities;

(2) Non-profit schools, medical institutions, and social welfare institutions take ownership of land and houses for office, teaching, medical care, scientific research, pension, and assistance;

(3) Accepting the land use rights of barren hills, barren land, and barren beaches for agriculture, forestry, animal husbandry, and fishery production;

(4) Change of ownership of land and house between husband and wife during the marriage relationship;

(5) The legal heir inherits the ownership of land and houses through inheritance;

(6) Foreign embassies, consulates and representative offices of international organizations in China that should be exempted from taxes in accordance with the law shall inherit the ownership of land and houses.

According to the needs of the national economy and social development, the State Council can provide for exemption or reduction of deed tax for housing demand guarantee, enterprise restructuring and reconstruction, and post-disaster reconstruction, and report to the Standing Committee of the National People's Congress for the record.

Article 6: Under any of the following circumstances, the deed tax shall be reduced or exempted:

(1) State organs, institutions, social organizations, and military units are exempted from expropriation if land and houses are used for office, teaching, medical treatment, scientific research and military facilities;

(2) Urban employees who purchase public housing for the first time in accordance with regulations are exempted;

(3) Where the house is repurchased due to force majeure, the house is lost or exempted as appropriate;

(4) Other items of deed tax reduction and exemption stipulated by the Ministry of Finance.

Article 7: Provinces, autonomous regions, and municipalities directly under the Central Government may decide to exempt or reduce deed tax for the following situations:

(1) Re-acquisition of land and house ownership due to land and house expropriation or requisition by people's governments at or above the county level;

(2) Lost the house due to force majeure and re-inherit the ownership of the house.

The specific measures for exemption or reduction of deed tax stipulated in the preceding paragraph shall be proposed by the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government, reported to the Standing Committee of the People's Congress at the same level for decision, and reported to the Standing Committee of the National People's Congress and the State Council for the record.

Article 8: Taxpayers who change the use of relevant land and houses, or have other conditions that no longer fall under the exemption or reduction of deed tax as stipulated in Article 6 of this law, shall pay the already exempted or reduced tax.

Article 7: Taxpayers who have been approved for deed tax reduction or exemption change the use of relevant land and houses and no longer fall within the scope of the deed tax reduction or exemption provided in Article 6 of these regulations, and shall make up for the tax reduction or exemption. Taxes levied.

Article 9: The time when the tax obligation of the deed tax occurs is the day when the taxpayer signs the land and house ownership transfer contract, or the day when the taxpayer obtains other certificates of the nature of the land and house ownership transfer contract.

Article 8: The time when the tax liability of deed tax occurs is the day when the taxpayer signs the land and house ownership transfer contract, or the taxpayer obtains other certificates of the nature of the land and house ownership transfer contract.

Article 10: Taxpayers shall declare and pay deed tax before going through the land and house ownership registration procedures in accordance with the law.

Article 9: Taxpayers shall, within 10 days from the date of the occurrence of tax obligations, file tax declarations with the deed tax collection authority where the land and house are located, and pay taxes within the time limit verified by the deed tax collection authority.

Article 11: After a taxpayer handles tax payment matters, the tax authority shall issue a deed tax payment certificate. When a taxpayer handles land and house ownership registration, the real estate registration agency shall check the deed tax payment, tax reduction or exemption certificate or relevant information. If the deed tax is not paid in accordance with the regulations, the real estate registration agency shall not handle the registration of land and house ownership.

Article 10: After the taxpayer handles the tax payment, the deed tax collection agency shall issue the deed tax payment certificate to the taxpayer.

Article 11: Taxpayers shall hold the deed tax payment voucher and other required documents and materials, and go through the registration procedures for land and house ownership changes with the land management department and real estate management department in accordance with the law. If a taxpayer fails to issue a deed tax payment certificate, the land management department and the real estate management department shall not handle the registration procedures for the change of ownership of the land and house.

Article 12: Before the land and house ownership registration is handled in accordance with the law, if the ownership transfer contract or the nature certificate of the ownership transfer contract is not valid, invalid, revoked or cancelled, the taxpayer may apply to the tax authority to refund the paid Taxes shall be handled by tax authorities in accordance with the law.

Article 13: The tax authority shall establish a mechanism for sharing tax-related information and working cooperation with related departments. Natural resources, housing and urban-rural development, civil affairs, public security and other relevant departments shall provide tax authorities with information related to the transfer of land and house ownership in a timely manner, and assist tax authorities in strengthening the management of deed tax collection.

Taxation authorities and their staff shall keep the personal information of taxpayers known in the process of tax collection management confidential in accordance with the law, and shall not disclose or illegally provide it to others.

Article 14: The deed tax shall be collected and managed by the tax authorities where the land and houses are located in accordance with this Law and the "Tax Collection and Administration Law of the People's Republic of China".

Article 12: The deed tax collection agency shall be the financial agency or local tax agency where the land and house are located. The specific expropriation agency shall be determined by the people's government of the province, autonomous region, and municipality directly under the Central Government.

The land administration department and the real estate administration department shall provide relevant materials to the deed tax collection authority and assist the deed tax collection authority in collecting deed tax in accordance with the law.

Article 15: Taxpayers, tax authorities and their staff who violate the provisions of this law shall be investigated for legal responsibility in accordance with the "Tax Collection Administration Law of the People's Republic of China" and relevant laws and regulations.

Article 13: The collection and management of deed tax shall be implemented in accordance with the regulations and relevant laws and administrative regulations.

Article 14: The Ministry of Finance shall formulate detailed rules in accordance with these regulations.

Article 16: This law shall come into force on September 1, 2021. The "Interim Regulations of the People's Republic of China on Deed Tax" promulgated by the State Council on July 7, 1997 shall be repealed simultaneously.

Article 15: These regulations shall come into force on October 1, 1997. The "Interim Regulations on Deed Tax" promulgated by the Central People's Government Administration Council on April 3, 1950 shall be repealed at the same time.