Provisional regulations on Urban Real Estate Tax of the People’s Republic of China

10-27-2007

(Promulgated on Document Zhengcai [1951] No.133 of the Administrative Council on Aug. 8, 1951)
Article 1 Real estate tax shall be collected by the taxation departments in accordance with the provisions of these Regulations, unless otherwise provided by other regulations.
Article 2 Cities without the verification and approval of the Ministry of Finance of the Central People's Government shall not levy urban real estate tax.
Article 3 Real estate tax shall be paid by the owner of the real estate or the lessee thereof; and in the absence of the owner or lessee thereof or pending resolution of the dispute over the ownership or the lease thereof, the agent or user thereof shall pay the tax.
Article 4 Real estates cited below shall be exempt from real estate tax:
1. Those owned and used by military and government institutions;
2. Those owned and used by public and officially licensed private schools;
3. Land and houses of public parks, historical sites and other public utilities;
4. Land and houses owned and used by mosques and lamaseries;
5. Land and houses used by other religious temples with the official approval of the people's governments at or above the provincial or municipal level.
Article 5 Real estates cited below shall be eligible for reduction or exemption of real estate tax:
1. New houses shall be exempted from real estate tax for three years beginning in the month of its completion.
2. Renovated houses involving expenses exceeding half of the original price shall be exempted from real estate tax for two years beginning on the month of the completion of the renovation.
3. Houses with special conditions may be allowed for reduction or exemption of real estate tax with special approval by the people's governments at or higher than the provincial (municipal) level.
Article 6 Real estate tax shall be assessed and collected by the following standards and rates:
1. Real estate tax shall be levied annually on the standard housing price at the rate of 1%;
2. Real estate tax shall be levied annually on the standard land price at the rate of 1.5%;
3. Where there is difficulty distinguishing the standard housing price and the standard land price, real estate tax may be levied annually for the time being on the combined standard price of the land and house at the rate of 1.5%;
4. Where there is difficulty arriving at a standard house and land price, real estate tax shall be levied annually for the time being on the standard rent price of the real estate at the rate of 15%.
Article 7 The standard prices mentioned in the previous passages shall be determined by the following methods:
1. The standard housing price shall be assessed by grades and categories in the light of the current prices in real estate transactions and with reference to the prices of the house construction at the time.
2. The standard land price shall be assessed by grades in the light of the location, the degree of local prosperity and transportation convenience and other conditions and with reference to the general market prices.
3. The standard land and house price shall be assessed by districts, categories and grades in the light of the location, conditions of the buildings with reference to the general mixed market price of land and house.
4. The standard rent price of the real estate shall be assessed by districts, categories and grades in the light of the general rents on both of the land and the house on it.
Article 8 Whether real estate tax shall be paid by quarterly installments or every half a year shall be determined by the local tax authorities.
Article 9 The cities authorized to collect real estate tax shall set up real estate appraisal committees which shall comprise representatives from the local people's representative conferences and from local financial, taxation, land administration, urban construction, administration for industry and commerce, and public security departments to be in charge of the work of appraisal under the leadership of the local people's governments.
Article 10 Real estate price appraisal shall be done once every year. Wherever the appraisal committee of the new years finds the original appraised price requiring no further appraisal, the effective term of the original appraised price may be prolonged with the approval of the local people's government.
The result of the appraisal or the lengthening of the effective term thereof shall be announced to the public by the local people's government upon examination and approval thereby.
Article 11 A taxpayer shall file the information of the location, state, number of rooms and area of a real estate to the local tax authorities within one month after the public announcement of the real estate appraisal committee. In case of any change of the address of the proprietor, the transfer of the proprietary right, or the expansion or renovation of the house thus resulting in a change of the price of the real estate, the situation thereof shall be filed with the tax authorities within ten days of the change, transfer or completion of work thereof.
Tax returns shall be filed on real estates of tax exemption as well in accordance with the provisions of the previous passage.
Article 12 The tax authorities shall keep records of the real estate tax collection and inspection, draw maps of land grading and, on the basis of the results of the appraisal by the appraisal committee and the tax returns filed by the taxpayers, carry out investigations, registration, verification and issue tax payment notifications demanding payment within the prescribed time limit.
In case of any disagreement to the conclusion of the appraisal committee, a taxpayer may apply to the appraisal committee for a review of the appraisal while paying up the tax.
Article 13 A taxpayer shall be subject to a fine of up to 500,000 yuan for failure to file tax returns within the prescribed time limit in accordance with the provisions of Article 11 of these Regulations.
Article 14 Should a taxpayer conceal or file false tax returns on a real estate in an attempt to dodge or evade tax, he shall be ordered to pay the tax and penalized by a fine up to five times the amount of the tax payable.
Article 15 Anybody may inform on those acts of violations cited above and upon verification of the report and the resolution of the case, the informer shall be awarded a sum to the equivalent of 20% to 30% of the fine on the violator of the tax law while the identity of the informer shall be kept confidential.
Article 16 A taxpayer failing to pay tax within the prescribed time limit shall be imposed a daily surcharge of 1% for overdue tax payment, in addition to being ordered to pay the tax within a fixed time.
Should a taxpayer fail to pay tax for more than 30 days after expiration of the prescribed time limit for tax payment and without any proper reason in the view of the tax authorities, the tax authorities may bring the case to the people's court.
Article 17 The provisions for the collection of real estate tax shall be formulated by the provincial (municipal) taxation departments in accordance with the provisions of these Regulations and report to the provincial (municipal) people's governments for examination and approval and report for the record to the General Taxation Administration of the Ministry of Finance of the Central People's Government.
Article 18 All those local separate provisions for real estate tax shall be abrogated upon the promulgation of these Regulations.
Article 19 These Regulations shall go into effect upon the promulgation thereof.