Laws of the People's Republic of China

PROVISIONAL REGULATIONS OF THE PEOPLE'S REPUBLIC OF
CHINA ON REAL ESTATE TAX

  (Issued on September 15, 1986 by the State Council)

 

 

SUBJECT: REAL ESTATE; TAXATION

ISSUING-DEPT: STATE COUNCIL OF CHINA

ISSUE-DATE: 09/15/1986

IMPLEMENT-DATE: 10/01/1986

LENGTH: 591 words

TEXT:

[Article 1] Real Estate Tax will be levied in cities, county towns, State designated townships and industrial and mining areas.üü [NOTE: Real estate excludes land (as all land in China remains the property of the State)]

[Article 2] Real Estate Tax will be paid by the owner of the property rights.üü Where title belongs to the entire people, the management unit will pay the Tax.üü Where the property has been mortgaged, the Tax will be paid by the mortgagee.üü Where neither the owner nor the mortgagee lives in the locality, where ownership of the property is yet to be established or where disputes concerning the rental or mortgage of the property are yet to be settled, the Tax will be paid by the custodian or the user of the property.

The owners, management units, mortgagees, custodians or users listed in the above paragraph will be referred to collectively as obligatory taxpayers (hereinafter referred to collectively as taxpayers).

[Article 3] The Tax will be calculated on the residual following the subtraction of between 10% and 30% of the original value of the property.üü Details of the scope of the subtraction will be determined by the provincial, autonomous region or directly administered municipal people's government.

Should the property's original value not be available as a basis, the local tax organ will examine and decide on an amount with reference to the value of other real estate of a similar nature.

Where the property is leased, the rental income from the property will be used as a basis for Tax calculations.

[Article 4] The Tax will be calculated on the residual value of the property at a rate of 1.2%, or on the rental income from the property at a rate of 12%.

[Article 5] The following categories of real estate will be exempt from paying the Tax:

(1) Real estate for the private use of State organs, people's organisations and the armed forces;

(2) Real estate for the private use of institutions whose operating expenses are allocated by State finance departments;

(3) Real estate for the private use of religious temples and shrines, parks and places of historic interest and scenic beauty;

(4) Real estate owned by individuals for non-business purposes;

(5) Other real estate approved by the Ministry of Finance as tax exempt.

[Article 6] With the exception of those included in Article 5 of these Regulations, taxpayers who have bona fide difficulties in meeting tax payments may enjoy a reduction of or exemption from the tax for a set period to be determined by the provincial, autonomous region or directly administered municipal people's government.

[Article 7] The Tax will be collected annually with payment by instalments.üü Payment deadlines will be determined by the provincial, autonomous region or directly administered municipal people's government.

[Article 8] Control of the collection of the Tax will be carried out in accordance with the "Provisional Regulations of the People's Republic of China on the Control of Tax Payment Collection".

[Article 9] The Tax will be collected by the taxpayer's local tax organ.

[Article 10] The Ministry of Finance is responsible for the interpretation of these Regulations.üü Detailed implementing rules will be formulated by the provincial, autonomous region or directly administered municipal people's government and a copy will be filed with the Ministry of Finance.

[Article 11] These Regulations shall come into force on October 1, 1986.