Circular of the Ministry of Finance and the State Administration of Taxation on Printing and Distributing the Interpretation and Tentative Regulations regarding Specific Questions Concerning the Real Estate Tax and the Interpretation and Tentative Regulations regarding Specific Questions concerning the Vehicle and Vessel Usage Tax
Circular of the Ministry of Finance and the State Administration of Taxation on Printing and Distributing the Interpretation and Tentative Regulations regarding Specific Questions Concerning the Real Estate Tax and the Interpretation and Tentative Regulations regarding Specific Questions concerning the Vehicle and Vessel Usage Tax
Circular of the Ministry of Finance and the State Administration of Taxation on Printing and Distributing the Interpretation and Tentative Regulations regarding Specific Questions concerning the Real Estate Tax and the Interpretation and Tentative Regulations regarding Specific Questions concerning the Vehicle and Vessel Usage Tax
Cai Shui Di Zi [1986] No.8
September 25, 1986
To the taxation bureaus of all provinces, autonomous regions and municipalities directly under the Central Government, and cities specifically designated in the state plan, the Taxation Bureau of Nanjing Municipality as well as all sub-bureaus of the Offshore Petroleum Taxation Bureau:
The Interim Regulations of the People's Republic of China on Real Estate Tax and the Interim Regulations of the People's Republic of China on Tax for the Use of Vehicles and Vessels have been formulated with the intention of facilitating the execution of these Regulations by the relevant bureaus. The State Administration of Taxation has interpreted and set out new rules concerning these two statutes on the basis of the opinions given by local offices. We have thus issued the Interpretation and Provisional Regulations on Some Specific Questions Concerning Real Estate Tax and the Interpretation and Provisional Regulations on Some Specific Issues Concerning Vehicle and Vessel Usage Tax. Please implement them in accordance with your local rules and regulations. As well, please contact the State Administration of Taxation in case there are any questions regarding the implementation of these regulations.
Appendix 1:
The Interpretation and Tentative Regulations regarding Specific Questions Concerning Real Estate Tax
I. Interpretation of terms city, county town, State designated township and industrial and mining area
Cities refer to the cities that have been set up after state examination, with the approval of the State Council.
County towns refer to towns where the county people's government is located, and does not include state designated townships.
State designated townships refer to those townships set up after state examination, with the approval of the people's government of that province, autonomous region or municipality directly under the control of the Central Government.
Industrial and mining areas refer to areas where large and medium-sized industrial and mining enterprises are located, where industry and commerce are relatively advanced and where the population is centralized, but where no state designated township has been set up as per the requirements on setting up a state designated township. Real estate taxes levied in industrial and mining areas shall be examined and approved by the people's government of the province, autonomous region or municipality directly under the Central Government.
II. Explanation of the tax levying capacity of cities and State designated townships.
The tax levying scope of cities includes urban districts, suburbs and county towns under the administrative control of the city, excluding rural areas.
The tax levying scope of State designated townships is limited to the townships where the people's government is located, but does not include administratively governed villages.
III. Interpretation of "people's organizations"
The term "people's organization" refers to various social organizations that are set up after examination and approval by the government departments authorized by the State Council, and whose administrative operation expenditures are allocated and funded by the state.
IV. Questions regarding whether the "units whose operation expenditures are allocated and funded by the financial departments of the state" include the institutions whose operation expenditures are allocated and funded by the financial departments of the state, and are given the power to implement balance budget.
Although the institutions implementing the balance budget can earn income independantly, the gap between their operation expenditures and their income shall be filled with the funds allocated by the financial departments of the state. Therefore, the institutions implementing the balance budget belong to the "units whose operation expenditures are allocated and funded by the financial departments of the state." Real estate intended for private use therefore may be exempted from the real estate tax.
V. Questions regarding whether the units, whose operation expenditures are allocated and funded by the financial departments of the state, may enjoy a reduction of or exemption from the real estate tax, after they implement the system of self-financing and self-spending for operation expenditures.
It is reasonable for these units to pay the real estate tax, it their operation expenditures are allocated and funded by the financial departments of the state, after they implement the system of self-financing and self-spending for operation expenditures.
......
Cai Shui Di Zi [1986] No.8
September 25, 1986
To the taxation bureaus of all provinces, autonomous regions and municipalities directly under the Central Government, and cities specifically designated in the state plan, the Taxation Bureau of Nanjing Municipality as well as all sub-bureaus of the Offshore Petroleum Taxation Bureau:
The Interim Regulations of the People's Republic of China on Real Estate Tax and the Interim Regulations of the People's Republic of China on Tax for the Use of Vehicles and Vessels have been formulated with the intention of facilitating the execution of these Regulations by the relevant bureaus. The State Administration of Taxation has interpreted and set out new rules concerning these two statutes on the basis of the opinions given by local offices. We have thus issued the Interpretation and Provisional Regulations on Some Specific Questions Concerning Real Estate Tax and the Interpretation and Provisional Regulations on Some Specific Issues Concerning Vehicle and Vessel Usage Tax. Please implement them in accordance with your local rules and regulations. As well, please contact the State Administration of Taxation in case there are any questions regarding the implementation of these regulations.
Appendix 1:
The Interpretation and Tentative Regulations regarding Specific Questions Concerning Real Estate Tax
I. Interpretation of terms city, county town, State designated township and industrial and mining area
Cities refer to the cities that have been set up after state examination, with the approval of the State Council.
County towns refer to towns where the county people's government is located, and does not include state designated townships.
State designated townships refer to those townships set up after state examination, with the approval of the people's government of that province, autonomous region or municipality directly under the control of the Central Government.
Industrial and mining areas refer to areas where large and medium-sized industrial and mining enterprises are located, where industry and commerce are relatively advanced and where the population is centralized, but where no state designated township has been set up as per the requirements on setting up a state designated township. Real estate taxes levied in industrial and mining areas shall be examined and approved by the people's government of the province, autonomous region or municipality directly under the Central Government.
II. Explanation of the tax levying capacity of cities and State designated townships.
The tax levying scope of cities includes urban districts, suburbs and county towns under the administrative control of the city, excluding rural areas.
The tax levying scope of State designated townships is limited to the townships where the people's government is located, but does not include administratively governed villages.
III. Interpretation of "people's organizations"
The term "people's organization" refers to various social organizations that are set up after examination and approval by the government departments authorized by the State Council, and whose administrative operation expenditures are allocated and funded by the state.
IV. Questions regarding whether the "units whose operation expenditures are allocated and funded by the financial departments of the state" include the institutions whose operation expenditures are allocated and funded by the financial departments of the state, and are given the power to implement balance budget.
Although the institutions implementing the balance budget can earn income independantly, the gap between their operation expenditures and their income shall be filled with the funds allocated by the financial departments of the state. Therefore, the institutions implementing the balance budget belong to the "units whose operation expenditures are allocated and funded by the financial departments of the state." Real estate intended for private use therefore may be exempted from the real estate tax.
V. Questions regarding whether the units, whose operation expenditures are allocated and funded by the financial departments of the state, may enjoy a reduction of or exemption from the real estate tax, after they implement the system of self-financing and self-spending for operation expenditures.
It is reasonable for these units to pay the real estate tax, it their operation expenditures are allocated and funded by the financial departments of the state, after they implement the system of self-financing and self-spending for operation expenditures.
......