Interim Regulations of the People's Republic of China on Value-added Tax on Land

Interim Regulations of the People's Republic of China on Value-added Tax on Land

Order of the State Council [1993] No. 138

December 13, 1993

The Interim Regulations of the People's Republic of China on Value-added Tax on Land adopted at the 12th standing meeting of the State Council on November 26, 1993 are hereby promulgated and shall come into effect as of January 1, 1994.

Premier: Li Peng

Article 1 These Regulations are formulated in order to regulate the order of land and real estate market transactions, to reasonably adjust the benefit from value-added tax on land and to safeguard the rights and interests of the State.

Article 2 All units and individuals receiving 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 Value-added Tax on Land (hereinafter referred to as the "Taxpayers") and shall pay Value-added Tax on Land in accordance with these Regulations.

Article 3 Value-added Tax on Land shall be assessed according to the appreciation amount derived by the taxpayer on the transfer of real estate and the tax rates prescribed in Article 7 of these Regulations.

Article 4 The appreciation amount shall be the balance of proceeds received by the taxpayer on the transfer of real estate, after deducting the sum of deductible items as prescribed in Article 6 of these Regulations.

Article 5 Proceeds received by the taxpayer on the transfer of real estate include monetary proceeds, proceeds in kind and other proceeds.

Article 6 The deductible items in computing the appreciation amount are as follows:
1.
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