Deed Tax Law of the People's Republic of China

Deed Tax Law of the People's Republic of China Order of the President of the People's Republic of China (No. 52) The Deed Tax Law of the People's Republic of China, as adopted at the 21st Session of the Standing Committee of the Thirteenth National People's Congress of the People's Republic of China on August 11, 2020, is hereby issued, and shall come into force on 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 Session of the Standing Committee of the Thirteenth National People's Congress on August 11, 2020) Article 1 The entities and individuals to whom the ownership of land and houses is transferred within the territory of the People's Republic of China are deed tax payers and shall pay deed tax in accordance with the provisions of this Law. Article 2 For the purpose of this Law, “transfer of the ownership of land and houses” means the following acts: (1) Assignment of land use rights. (2) Transfer (including sale, gift and exchange) of land use rights. (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 conventional usufructs on rural land for agricultural operations and usufructs on land. Where the ownership of any land or house is transferred by means of investment as trade-in (equity investment), debt repayment, transfer, or reward, among others, the deed tax shall be levied in accordance with the provisions of this law. Article 3 Deed tax rates shall be 3%-5%. The specific applicable deed tax rates shall be proposed by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government within the range of tax rates provided in the preceding paragraph, be reported to the standing committees of the people's congresses at the same level for determination, and be filed with the Standing Committee of the National People's Congress and the State Council. All provinces, autonomous regions, and municipalities directly under the Central Government may, under the procedures provided in the preceding paragraph, determine differential tax rates applicable to ownership transfer with respect to different subjects, different regions and different types of houses. Article 4 Deed tax shall be calculated based on: (1) the transaction price determined in the contract on the transfer of the ownership of any land or house in case of the assignment or sale of the land use right or the sale of the house, including the prices corresponding to the currency, material objects and other economic benefits that shall be delivered; ......