OVERVIEW OF CHINA'S CURRENT TAX SYSTEM
House Property Tax
(1) Taxpayers
House Property Tax is levied in cities, county capitals, townships
and industrial and mining districts. Taxpayers are owners of
house property, operational and managerial units of house property,
mortgagees, custodians and users of house property (excluding
enterprises with foreign investment, foreign enterprises and
foreigners).
(2) Tax base, tax rates and computation of tax payable
Two different rates are applied to two different cases: in one
case where the tax base is the residual value after the subtraction
of 10% to 30% of the original value from the original value
of the property, the tax rate is 1.2% ; in the other case where
the tax base is the rental income from the property, the rate
is 12%. The formula for calculating House Property Tax payable
is:
Tax payable =Tax base ×Applicable rate
(3) Major exemptions
House Property Tax may be exempt on the house property for the
own use of State organs, people' s organizations and the armed
forces; the house property for the own use of institutions whose
operating funds are allocated by State finance departments;
the house property for the own use of religious temples and
shrines, parks and places of historic interest and scenic beauty;
the house property owned by individuals for non-business use;
and the damaged houses and perilous houses verified as being
out of use by relevant department. |
