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GUO WU YUAN LING [138] 1993. 12. 13
Article 1 These Regulations were formulated to broaden the
scope of regulation of the land and real estate business market,
to fairly apportion land appreciation levies and to maintain State
revenues.
Article 2 All units and individuals who receive income from
the transfer of State- owned land use rights, buildings and their
attached facilities (hereinafter referred to as 'transfer of real
estate'), shall be taxpayers of the Land Appreciation Tax(hereinafter
referred to as 'taxpayers'), in accordance with these Regulations.
Article 3 Land Appreciation Tax shall be calculated using
the amount of appreciation obtained by the taxpayer from the transfer
of real estate and the tax rates prescribed in Article 7 of these
Regulations.
Article 4 The amount of land appreciation is the amount
remaining when the amount of deductions, allowable according to
Article 6 of the Regulations, is subtracted from the income received
by the taxpayer from the transfer of the real estate.
Article 5 Income received by the taxpayer from the transfer
of real estate includes monetary income, income in kind and other
income.
Article 6 In calculating the amount of appreciation, the
deductible items are as follows:
A. the amount paid out for the transfer of land use rights;
B. costs and expenses incurred in developing land;
C. costs and expenses incurred in construction of new buildings
, or the assessed value for existing buildings and constructions
;
D. taxes paid in relation to the transferred real estate;
E. other deductible items as stipulated by the Ministry of Finance.
Article 7 Land Appreciation Tax is implemented on a four-level
progressive tax rate schedule as follows:
for the part of the appreciation not exceeding 50% of the total
deductible items, the tax rate shall be 30%;
for the part of the appreciation exceeding 50% but not exceeding
100% of the total deductible items, the tax rate shall be 40%;
for the part of the appreciation exceeding 100% but not exceeding
200% of the total deductible items, the tax rate shall be 50%;
for the part of the appreciation exceeding 200% of the total deductions,
the tax rate shall be 60%.
Article 8 In any of the following circumstances, Land Appreciation
Tax will not be levied:
A. where a taxpayer constructs an ordinary standard residence for
sale, and the amount of appreciation does not exceed 20% of the
total amount of deductions;
B. where, due to construction requirements of the State, real estate
is repossessed according to law.
Article 9 Where a taxpayer falls into any of the following
situations , tax shall be calculated according to the assessed value
of the real estate:
A. concealing or falsely reporting the actual selling price of
the real estate;
B. where the amount of deductions claimed is unrealistic;
C. the actual transfer price of the real estate is lower than the
appraisal price, without proper justification.
Article 10 Taxpayers shall report to the local taxation
authorities where the real estate is located within seven days of
signing the real estate transfer agreement, and shall pay the Land
Appreciation Tax within the period specified by the taxation authorities.
Article 11 Land Appreciation Tax shall be collected by the
taxation authorities. The Department of Land Administration and
Department of Real Estate Administration shall provide the taxation
authorities with relevant information, and shall assist the taxation
authorities to collect the Land Appreciation Tax in accordance with
the law.
Article 12 Where taxpayers have not paid the Land Appreciation
Tax according to these Regulations, the Departments of Land Administration
and Real Estate Administration shall not carry out the relevant
title change procedures.
Article 13 Collection and Administration of the Land Appreciation
Tax is carried out according to regulations in "Law of the
People's Republic of China on the Administration of Tax Collection"
and relevant regulations in these Regulations.
Article 14 The Ministry of Finance is responsible for interpreting
these Regulations, and for formulating the Detailed Rules for their
implementation.
Article 15 These Regulations take effect as of January 1,
1994. If the methods of levying Land Appreciation fees in any region
are in conflict with these Regulations, those methods shall cease
being implemented.
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