Promulgation Authorities： Standing Committee of the National People's Congress
Release Date： 2020.08.11
Effective Date： 2021.09.01
Doc Number： Presidential Decree No. 52
Deed Tax Law of the People's Republic of China
Presidential Decree No. 52
The Deed Tax Law of the People's Republic of China, adopted at the 21st Session of the Standing Committee of the 13th National People 's Congress on August 11, 2020, is hereby promulgated, effective 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 13th National People's Congress on August 11, 2020)
Article 1 Any organization or individual to whom the title to the land or building in question has been transferred within the territory of the People's Republic of China shall be the payer of deed tax and shall pay such tax according to this Law.
Article 2 For the purpose of this Law, the term "transfer of the title to the land or building in question" refers to the following acts:
(I) granting of the land use right;
(II) transfer of the land use right, including sales, donations and exchanges; and
(III) purchase, sale, donation or exchange of buildings.
Transfer of the land use right mentioned in Item (II) of the preceding paragraph does not include transfer of the land contracting management right and the land management right.
Deed tax shall be levied pursuant to the provisions of this Law on transfer of the title to the land or building in question by way of conversion into investment (equity participation), debt repayment, allocation, reward, etc.
Article 3 The deed tax rate ranges from 3% to 5%.
The specific applicable deed tax rate shall be proposed by the people's government of a province, autonomous region or directly administered municipality within the range stipulated above, submitted to the Standing Committee of the National 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 for the record.
Provinces, autonomous regions and centrally-administered municipalities may determine differential tax rates for transfer of the title to different types of housing by different subjects in different regions under the procedures stipulated in the preceding paragraph.
Article 4 The calculation basis of deed tax:
(I) for assignment and sale of the land use right and the buying/selling of a building, the basis is the transaction price determined in the contract for the transfer of title to the land or building in question, including the currency payable and the price corresponding to physical objects and other economic benefits;
(II) for exchange of the land use right and exchange of a building, the basis is the difference between the prices of the exchanged land or the building; and
(III) for donation of the land use right, donation of a building or any other transfer of the title to the land or building in question without a price, the basis is the price determined by the tax authorities in accordance with the law and with reference to the market price for sale of the land use right or transaction of the building.
If a taxpayer declares a significantly lower transaction price or swap price difference without justifiable reasons, the basis shall be determined by the taxation authority concerned according to the Law of the People's Republic of China on the Administration of Tax Levying.
Article 5 The payable amount of deed tax shall be calculated by multiplying the tax calculation basis by the specific applicable tax rate.
Article 6 Deed tax may be exempted under any of the following circumstances:
(I) where a state organ, public institution, social organization or military entity acquires the title to the land or building in question for office, teaching, medical treatment, scientific research or military facilities;
(II) where a non-profit school, medical institution or social welfare institution acquires the title to the land or building in question for office, teaching, medical treatment, scientific research, old-age pension or relief; and
(III) where the right to use barren mountains, land or beaches is acquired for agricultural, forestry, animal husbandry or fishery production;
(IV) where there is change to the title to the land or building in question between the husband and wife during the period of their matrimonial relationship;
(V) where a legal heir acquires the title to the land or building in question through inheritance; or
(VI) where a foreign embassy/consulate in China or the representative office of an international organization in China which is entitled to exemption from taxation according to the provisions of laws acquires the title to the land or building in question.
In light of the needs of national economic and social development, the State Council may stipulate exemption from or reduction of deed tax for social security housing needs of residents, enterprise restructuring or post-disaster reconstruction, etc, subject to record-filing with the Standing Committee of the National People 's Congress.
Article 7 Provinces, autonomous regions and municipalities directly under the Central Government may decide to exempt or reduce deed tax under either the following circumstances:
(I) where the title to the land or building in question is acquired anew due to expropriation or requisition by a people's government above the county level; or
(II) where the title to a house in question is acquired anew as the house is distinguished due to force majeure.
Specific measures for exemption from or reduction of deed tax as stipulated in the preceding paragraph shall be proposed by the people's government of the province, autonomous region or municipality directly under the Central Government, submitted to the Standing Committee of the National People 's Congress at the corresponding level for decision, and filed with the Standing Committee of the National People's Congress and the State Council for the record.
Article 8 If a taxpayer changes the purpose of use of the land or building in question, or there are other circumstances that no longer qualify for the exemption from or reduction of deed tax as stipulated in Article 6 hereof, the taxpayer shall pay the amount of tax that has been exempted or reduced.
Article 9 The time when the obligation for a taxpayer to pay deed tax arises shall be the day when the taxpayer signs the contract on transfer of the title to the land or building in question, or the day when the taxpayer obtains other vouchers with the nature of a contract on transfer of title to the land or building in question.
Article 10 A taxpayer shall declare and pay deed tax before going through the formalities for registration of title to the land or building in question in accordance with the law.
Article 11 After a taxpayer has paid deed tax, the taxation authority concerned shall issue a deed tax payment receipt to the taxpayer. For registration of the title to the land or building in question for a taxpayer, the real estate registration agency concerned shall check the proof of payment, tax reduction or exemption or the relevant information for deed tax. Where deed tax is not paid pursuant to the provisions, the real estate registration agency shall not process registration of the title to the land or building in question.
Article 12 Before registration of the title to the land or building in question is made in accordance with the law, if the title transfer contract or the voucher of the nature of title transfer contract is not valid, invalid, revoked or rescinded, the taxpayer may apply to the tax authority concerned for refunding the tax paid and the said authority shall handle the application in accordance with the law.
Article 13 Tax authorities shall establish the mechanism for the sharing of information on deed tax and work cooperation with the relevant authorities. The relevant authorities in charge of natural resources, housing and urban-rural development, civil administration, or public security etc. shall promptly provide information relating to transfer of titles to land or buildings to tax authorities, and assist tax authorities in strengthening administration of levying deed tax.
Tax authorities and their staff shall keep confidentiality of personal information of taxpayers which have come into their knowledge in the course of administration of tax levying pursuant to the law and shall not divulge or provide such information to others illegally.
Article 14 Deed tax shall be levied and administered by the tax authority at the place where the land or building in question is located in accordance with this Law and the Law of the People's Republic of China on the Administration of Tax Levying.
Article 15 With regard to taxpayers, tax authorities or their staff in violation of the provisions, their legal liability shall be pursued in accordance with the Law of the People's Republic of China on the Administration of Tax Levying and the relevant laws and regulations.
Article 16 This Law shall come into force as of September 1, 2021, repealing simultaneously the Provisional Regulation of the People's Republic of China on Deed Tax promulgated by the State Council on July 7, 1997.
