Table of Contents
Chapter I: General Provisions
Article 1 This Law is enacted for the purposes of regulating the collection and administration of deed tax, safeguarding the lawful rights and interests of taxpayers, and promoting the sound development of economic and social undertakings.
Article 2 Entities and individuals that transfer land use rights or house ownership within the territory of the People’s Republic of China and bear the deed tax shall be taxpayers of deed tax and shall pay deed tax in accordance with the provisions of this Law.
Article 3 For the purposes of this Law, “transfer of land use rights or house ownership” means the following acts: (1) transfer of land use rights; (2) transfer of house ownership, including sale, gift, and exchange; (3) where land use rights and the houses and structures attached to the land are transferred together, deed tax shall be calculated and levied uniformly.
Article 4 The tax base for deed tax shall be: (1) for the transfer of land use rights or house ownership by sale, the transaction price; (2) for the transfer of land use rights or house ownership by exchange, the price difference; and (3) for the transfer of land use rights or house ownership by gift or other methods without price consideration, the market price determined with reference to the market price at the time when the deed tax obligation arises.
Chapter II: Tax Rates and Calculation
Article 5 The deed tax rate shall be from 3% to 5%. The specific applicable tax rate shall be proposed by the people’s government of each province, autonomous region, or municipality directly under the Central Government within the tax rate range prescribed in the preceding paragraph based on the actual conditions of the region, and shall be submitted to the standing committee of the people’s congress at the same level for decision, and filed with the Standing Committee of the National People’s Congress and the State Council. Where the deed tax rate determined by a province, autonomous region, or municipality directly under the Central Government applies to different entities, regions, or types of housing, the conditions provided by the state shall be met.
Article 6 The amount of deed tax payable shall be calculated based on the tax base multiplied by the specific applicable tax rate. Where the transaction price or the price difference is abnormal and without justifiable reason, or where the price is not explicitly specified, the tax authorities shall determine the tax base in accordance with law.
Chapter III: Tax Reductions and Exemptions
Article 7 Deed tax shall be exempted for any of the following circumstances: (1) where state organs, public institutions, social organizations, or military units receive land or housing for office, teaching, medical treatment, scientific research, or military facilities; (2) where non-profit schools, medical institutions, or social welfare institutions receive land or housing for office, teaching, medical treatment, scientific research, elderly care, or child care; (3) where land or housing is received as a result of land requisition or housing expropriation by the people’s government at or above the county level; (4) where land or housing is re-divided or the title confirmed upon the division of land or housing in rural areas; (5) where land or housing ownership is acquired by inheritance through a will; and (6) other circumstances prescribed by laws for tax exemption.
Article 8 Deed tax may be reduced or exempted for any of the following circumstances: (1) where the acquisition of land or housing ownership is caused by the restructuring or reorganization of an enterprise as part of the optimization of its capital structure in accordance with law; (2) where land or housing ownership is transferred due to the division or merger of an enterprise; (3) where land use rights or house ownership is acquired due to the transfer of creditor’s rights or the realization of security interests; (4) where a natural person purchases the first ordinary housing for the household; or (5) other circumstances prescribed by laws, administrative regulations, or the State Council.
Article 9 Where the deed tax is reduced or exempted in accordance with the provisions of Article 7 or Article 8 of this Law, and the use of the land or housing is changed, the changed use no longer falls within the scope of the deed tax reduction or exemption, the deed tax shall be paid retroactively. The deed tax for re-payment shall be calculated based on the tax base at the time of the original acquisition of the land use rights or house ownership and the applicable tax rate at the time when the deed tax liability arises.
Chapter IV: Collection Administration
Article 10 The deed tax liability shall arise on the date when the taxpayer enters into the contract for the transfer of land use rights or house ownership, or on the date when the taxpayer obtains another document of a nature equivalent to a contract for the transfer of land use rights or house ownership.
Article 11 A taxpayer shall declare and pay deed tax in accordance with law before going through the formalities for land or housing ownership registration. The tax authorities shall collect deed tax in accordance with law.
Article 12 The deed tax shall be levied by the tax authorities at the place where the land or housing is located. Where the registration authority for land or housing shall, in accordance with law, handle the registration of land or housing ownership, the deed tax payment certificate or tax exemption certificate shall be verified, and registration shall not be processed for those who fail to pay deed tax in accordance with regulations.
Article 13 Where the deed tax paid by a taxpayer exceeds the amount of tax payable, the taxpayer may apply to the tax authorities for a refund, and the tax authorities shall handle it in accordance with law. Where a transfer contract for land use rights or house ownership is terminated, the taxpayer may apply to the tax authorities for a refund of the deed tax already paid, and the tax authorities shall handle it in accordance with law.
Chapter V: Supplementary Provisions
Article 14 The tax authorities and the departments of natural resources, housing and urban-rural development, and civil affairs shall establish a working mechanism for the sharing of deed tax-related information. The relevant departments shall provide information related to deed tax to the tax authorities in a timely manner and assist the tax authorities in strengthening the administration of deed tax collection.
Article 15 Where any provisions of this Law are violated, the tax authorities shall pursue liability in accordance with this Law, the Law on the Administration of Tax Collection, and other relevant laws and administrative 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.
Translation note: This is an unofficial English translation for reference purposes. The original Chinese text shall prevail in all legal matters.
