Real Estate Tax

Provisional Regulations Governing Urban Real Estate Tax has been annulled since the 1st of January 2009. Foreign-funded enterprises, foreign enterprises and organizations and foreign people should pay real estate tax in accordance with the Provisional Regulations of the People's Republic of China on Real Estate Tax.

Real estate tax should be paid by the owner of the house, or by the management unit if the house is state-owned, or by the pawnee if the ownership is pawned, or by the house managing agent or user the owner or Pawnee is not at the place where the house is located, the ownership is unclear, or there is any pending pawn dispute.

Tax calculation basis and tax rate

• Real estate tax should be calculated as per the value with 10%-30% deducted from the original house value. The specific deduction percentage should be specified by the people's governments of respective provinces, autonomous regions and municipalities.
• House rents should be used as the basis for calculating the real estate tax of the rented house.

Real estate tax rate

• For the real estate tax calculated as per the residual value of the house, the tax rate should be 1.2%;
• For the real estate tax calculated as per the house rent, the tax rate should be 12%;
• For the house rented by individuals for living and the real estate tax calculated as per rent, the tax rate should be 4%.

Calculation method

Tax payable = Tax calculation basis × applicable tax rate

Tax payment deadline

• For the house built by taxpayer himself, the taxpayer should pay the real estate tax from the following month after establishment;
• For the house built by the appointed construction enterprise, the taxpayer should pay the real estate tax from the following month after the inspection and acceptance formalities have been completed;
• For the new commercial house purchased by the taxpayer, the taxpayer should pay the real estate tax from the following month after delivery of the house;
• For the stock house purchased by the taxpayer, the taxpayer should pay the real estate tax from the following month after the transfer of house ownership and change of registration formalities;
• The real estate tax is collected annually and paid in installments. The tax payment deadline is specified by the people's governments of provinces, autonomous regions and municipalities.

Tax discounts

• Personal non-operating houses are exempt from real estate tax.
• From 1 January 2009 to 30 June 2011, the premises used by enterprises for providing heat to residents and charging heat fees are exempt from real estate tax
• For the taxpayers incapable of paying the tax, the Regulations authorize the people's governments of provinces, autonomous regions and municipalities to regularly reduce or exempt them from real estate tax.

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