Deed Tax Law of the People's Republic of China
(Adopted at the 21st Session of the Standing Committee of the Thirteenth National People’s Congress on August 11, 2020)
Article 1?Entities?and individuals, to?which or?whom the land?use rights?and house?ownership are?transferred within the territory of the People’s Republic of China,?are taxpayers of deed tax?and shall pay deed tax in accordance with?the provisions of?this Law.
Article 2?For the purpose of this Law, “transfer of the land?use rights?and house?ownership”?refers to the following acts:
(1)?assignment of land use rights;
(2)?transfer,?including sale, gift and exchange,?of land use rights; and
(3)sale, gift and exchange of houses.
The transfer of land use rights in subparagraph (2) of the preceding paragraph does not include the transfer of?the?right to contractual management of?land and the right to?management of?land.
Where the land?use rights and?house?ownership?are?transferred by means of investment as?capital?(equity investment), debt repayment,?allocation and asset transfer, reward,?etc., the deed tax shall be levied in accordance with this?Law.
Article 3?Deed tax rates shall be 3%?to?5%.
The specific applicable deed tax rates shall be proposed by?people’s?government of?each?province, autonomous region and municipality?directly under the Central Government within the range of tax rates?as specified?in the preceding paragraph,?and shall?be?submitted?to the standing committee of the people’s congress at the same level for decision, and then be submitted to the Standing Committee of the National People’s Congress and the State Council for the record.
Each province, autonomous region, and municipality directly under the Central Government may, under the procedure as specified in the preceding paragraph, determine differential tax rates applicable to ownership transfer of the dwelling houses with respect to different transferees, different regions and different types.
Article 4?The?tax?basis?for deed tax?shall?be?as follows:
(1)in?the?case of the assignment or sale of land use rights?or the sale of houses, the transaction price determined in the contract?for?the transfer of the land?use rights?or house?ownership, including the currency?and?the?payments?corresponding to?the?tangible goods?and other economic benefits that shall be delivered;
(2)in?the?case of exchange of land use rights or houses, the price difference between?the exchanged land use rights?or?houses; or
(3)in?the?case of gift of land use rights or houses or other types of transfer?of?the?land?use rights?or house ownership without?a transaction?price,?the price assessed?and determined?by tax authorities?in accordance with the law?by?referring?to the market price in the sale of land use rights or houses.
Where the transaction price or price difference in an exchange?declared?by?a?taxpayer is?significantly low?without?any?justifiable?reason,?the?tax authority?shall?assess the amount?in accordance with?the?Law of the People’s Republic of China on the Administration of Tax Collection.
Article?5?The amount of deed tax payable shall be calculated by multiplying the tax?basis?by the specific applicable tax rate.
Article?6?Deed tax shall be?exempted?under any of the following circumstances:
(1)acceptance of land?use rights?or house ownership by state organs, public institutions, social organizations and military units for office, teaching, medical?care, research and military?facilities;
(2)acceptance of land?use rights?or house ownership by non-profit schools, medical institutions and social welfare institutions for office, teaching, medical?care, research, elderly care and assistance;
(3)?acceptance of land use rights of?unclaimed mountains,?land and?mudflats?for agriculture, forestry, animal husbandry and fishery;
(4)?transfer of land?use rights?or house ownership between?a?person and his or her spouse during their marriage;
(5)acceptance of land?use rights?or house ownership by heir at law through inheritance; or
(6)?acceptance of land?use rights?or house ownership by foreign embassies,?consulates and representative offices of international organizations?in China?which shall be exempt from tax in accordance with the?provisions of?laws.
According?to the national economic and social development?needs,?the State Council may?stipulate?exemption or reduction?of?deed tax?with respect to circumstances?such as?meeting demand?for dwelling houses, enterprise restructuring and reorganization and post-disaster reconstruction,?and?submit them to?the Standing Committee of the National People’s Congress?for the record.
Article?7?Under any of the following circumstances, each?province, autonomous region or municipality?directly under the Central Government may decide to exempt or reduce deed tax:
(1)?acceptance of new land?use rights?or house ownership where the original?one?has been expropriated or requisitioned by?a?government at or above the county level; or
(2)?acceptance of a new?dwelling?house ownership after the original has been destroyed?due to?force majeure.
The specific measures for deed tax exemption or reduction as?stipulated?in the preceding paragraph shall be proposed by the?people’s?government of a province, autonomous region or municipality directly under the Central Government,?and shall?be?submitted?to the standing committee of the people’s congress at the same level for?decision, and?then?be?submitted?to?the Standing Committee of the National People’s Congress and the State Council?for record.
Article?8?Where?a?taxpayer?changes the uses of relevant land or houses, or where?there are other?circumstances which are no longer qualified for exemption or reduction of deed tax in Article 6 of this Law, the taxpayer shall repay the deed tax that has been exempted or reduced.
Article?9?The time when the?obligation to pay deed tax?occurs shall be?the day?when a taxpayer?enters into?a?contract?for the transfer of the land?use rights?or house?ownership?or when the taxpayer obtains?the certificate of the same nature as such contract.
Article?10?A taxpayer shall?declare and pay?deed tax before?the registration of?land?use rights?or house ownership?in accordance with?the law.
Article?11?After a taxpayer?completes the tax payment procedure,?the?tax authority?shall issue a deed?tax payment?certificate. When a taxpayer registers land?use rights?or house ownership,?the immovable?property registration authority?shall check the deed?tax payment?certificate,?deed tax reduction
Article?12?Where an ownership transfer contract or a certificate?of the same nature as an ownership transfer contract has not taken effect, or is null and void, revoked or rescinded before the land?use rights?or house ownership is registered?in?accordance with?the law, the taxpayer may apply to the tax authority?for refunding?of the taxes that have been paid, and?the?tax authority?shall process such application?in accordance with?the law.
Article?13?Tax authorities shall, in conjunction with relevant departments, establish tax-related information sharing mechanism and work coordination mechanism for deed tax. Relevant authorities, including those of natural resources, housing and urban-rural development, civil affairs, and public security shall provide tax authorities with information concerning the transfer of the land?use rights?and house?ownership?in a timely manner, and shall assist tax authorities in strengthening the?administration?of?deed tax collection.
Tax authorities and their staff members shall, in accordance with the law, keep confidential the personal information of taxpayers to which they have access?in the process of the administration of tax collection, and shall not divulge or illegally provide such information to others.
Article?14?The administration of?deed tax?collection?shall be?carried out?by tax authorities at places where the land or house is located?in accordance with the provisions of this Law and?the Law of the People’s Republic of China on the Administration of Tax Collection.
Article?15?Where taxpayers, tax authorities and their staff violate the provisions of this Law, their legal liabilities shall be investigated in accordance with the Law of the People’s Republic of China on the Administration of Tax Collection and other relevant provisions of laws and regulations.
Article?16?This Law shall go into effect on September 1, 2021. The Provisional Regulations on Deed Tax of the People’s Republic of China promulgated by the State Council on July 7, 1997, shall be repealed?simultaneously.