Presidential Decree of the People's Republic of China

No. 52

 

　　The 'Deed Tax Law of the People's Republic of China' was adopted at the 21st Meeting of the Standing Committee of the 13th National People's Congress of the People's Republic of China on August 11, 2020, and is hereby promulgated and shall take effect as of September 1, 2021.

 

                                                                                                                Xi Jinping, President of the People's Republic of China

                                                                                                                August 11, 2020

 

Deed Tax Law of the People's Republic of China

 

　　(Adopted at the 21st Meeting of the Standing Committee of the 13th National People's Congress on August 11, 2020)

 

Article 1   Units and individuals that transfer land and house ownership within the territory of the People's Republic of China shall be payers of deed tax and shall pay deed tax in accordance with the provisions of this Law.

 

Article 2   The term 'transfer of land and house ownership' as used in this Law refers to the following acts:

 

　　(1) Granting of land use rights;

 

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

 

　　(3) Sale, gift, or exchange of houses.

 

　　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.

 

　　Deed tax shall be levied in accordance with the provisions of this Law for the transfer of land and house ownership by means of investment (shareholding), debt repayment, transfer, reward, etc.

 

Article 3   The deed tax rate shall be 3% to 5%.

 

　　The specific applicable deed tax rate shall be proposed by the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government within the tax rate range stipulated in the preceding paragraph, and shall be reported to the standing committee of the people's congress at the same level for decision, and shall be 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, in accordance with the procedures stipulated in the preceding paragraph, determine differential tax rates for the transfer of ownership of housing of different subjects, different regions, and different types.

 

Article 4   The tax base for deed tax:

 

　　(1) For the grant and sale of land use rights and the sale of houses, the transaction price determined in the land and house ownership transfer contract shall include the currency to be paid and the price corresponding to the physical objects and other economic benefits;

 

　　(2) For the exchange of land use rights and the exchange of houses, the difference between the prices of the land use rights and houses exchanged;

 

　　(3) For the donation of land use rights, the donation of houses, and other acts of transferring land and house ownership without a price, the price assessed by the tax authorities with reference to the market price of the sale of land use rights and the sale of houses in accordance with the law.

 

　　If the transaction price or exchange price difference declared by the taxpayer is obviously low and there is no legitimate reason, the tax authorities shall assess it in accordance with the provisions of 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 base by the specific applicable tax rate.

 

Article 6   Deed tax shall be exempted in any of the following circumstances:

 

　　(1) State organs, public institutions, social organizations, and military units that accept land and house ownership for office, teaching, medical, scientific research, and military facilities;

 

　　(2) Non-profit schools, medical institutions, and social welfare organizations that accept land and house ownership for office, teaching, medical, scientific research, elderly care, and assistance;

 

　　(3) Accepting the right to use the usufruct of barren hills, wasteland, and barren beaches for agricultural, forestry, animal husbandry, and fishery production.

 

　　(4) Changing the ownership of land and houses between husband and wife during the duration of the marriage relationship;

 

　　(5) Legal heirs inherit land and house ownership through inheritance;

 

　　(6) Foreign embassies, consulates, and representative offices of international organizations in China that should be tax-exempt in accordance with the law accept land and house ownership.

 

　　In accordance with the needs of national economic and social development, the State Council may stipulate the exemption or reduction of deed tax for circumstances such as guaranteeing residents' housing needs, enterprise restructuring, and post-disaster reconstruction, and report it to the Standing Committee of the National People's Congress for the record.

 

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

 

　　(1) Re-accepting land and house ownership due to the requisition and use of land and houses by the people's government at or above the county level;

 

　　(2) Re-accepting housing ownership due to the loss of housing due to force majeure.

 

　　The specific measures for the 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, and shall be reported to the standing committee of the people's congress at the same level for decision, and shall be reported to the Standing Committee of the National People's Congress and the State Council for the record.

 

Article 8   If a taxpayer changes the use of the relevant land or house, or there are other circumstances that no longer fall under the tax exemption or reduction stipulated in Article 6 of this Law, the tax that has been exempted or reduced shall be paid.

 

Article 9   The time when the obligation to pay deed tax occurs is the date when the taxpayer signs the contract for the transfer of land and housing ownership, or the date when the taxpayer obtains other documents with the nature of a contract for the transfer of land and housing ownership.

 

Article 10   Taxpayers shall declare and pay deed tax before completing land and housing ownership registration procedures in accordance with the law.

 

Article 11   After the taxpayer handles tax matters, the tax authority shall issue a deed tax payment certificate. When a taxpayer applies for land and housing ownership registration, the real estate registration authority shall verify the deed tax payment, tax reduction or exemption certificate, or relevant information. If the deed tax is not paid as required, the real estate registration authority will not process the land and housing ownership registration.

 

Article 12   Before completing land and housing ownership registration in accordance with the law, if the ownership transfer contract or the document with the nature of the ownership transfer contract is not effective, invalid, revoked, or terminated, the taxpayer may apply to the tax authority for a refund of the tax already paid, and the tax authority shall handle it in accordance with the law.

 

Article 13   The tax authority shall establish a mechanism for sharing deed tax-related information and coordinating work with relevant departments. Relevant departments such as natural resources, housing and urban-rural development, civil affairs, and public security shall provide information related to the transfer of land and housing ownership to the tax authority in a timely manner to assist the tax authority in strengthening the collection and management of deed tax.

 

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

 

Article 14   Deed tax shall be collected and managed by the tax authority in the location of the land or housing in accordance with this Law and the "Law of the People's Republic of China on the Administration of Tax Collection".

 

Article 15   If taxpayers, tax authorities, and their staff violate the provisions of this Law, they shall be held legally responsible in accordance with the "Law of the People's Republic of China on the Administration of Tax Collection" and relevant laws and regulations.

 

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