Serial Number

Deed Tax Law of

the People’s Republic of China

Interim Regulations of the People’s Republic of China on Deed Tax (Revised in 2019)

1

Regardless of the regulations or the new law, the tax rate has not changed from beginning to end, and the low tax rate such as 1% in real life will still vary according to the actual situation of each region. At the same time, since it is currently promulgated in the form of a law, the subject of review and filing is also different.

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

The specific applicable tax rate of 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% to 5%.

The applicable tax rate of the deed tax shall be determined by the people’s policies of the provinces, autonomous regions, and municipalities directly under the Central Government within the range specified in the preceding paragraph in accordance with the actual conditions of the region, and shall be reported to the Ministry of Finance and the State Administration of Taxation for the record.

2

1) Regarding point (4), the Ministry of Finance issued Caishui [2014] No. 4 "Notice on the Deed Tax Policy for the Change of House and Land Ownership Between Husband and Wife" as early as December 31, 2013;

2) Regarding point (5), the State Administration of Taxation has issued Guo Shui Han [2004] No. 1036 on "State Administration of Taxation’s Reply on Deed Tax Issues Concerning Inheritance of Land and House Ownership" on September 2, 2004.

Article 6 In any of the following circumstances, deed tax is exempted:

(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 mountains, 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 exempt 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 or exemption stipulated by the Ministry of Finance.