Official Reply to the Issues concerning the Business Tax on Chinese-Foreign Cooperative Development of Real Estate

Official Reply to the Issues concerning the Business Tax on Chinese-Foreign Cooperative Development of Real Estate
Official Reply to the Issues concerning the Business Tax on Chinese-Foreign Cooperative Development of Real Estate

Guo Shui Han Fa [1994] No.644

December 6, 1994

The State Tax Bureau of Guangdong Province,

We have recently received the Request for Instructions on the Issues Concerning the Business Tax on Cooperative Development of the Real Estate (Shui Yi [1994] No. 327) from the Guangzhou Municipal Tax Bureau. In this Request, the Bureau reported that some domestic enterprises cooperated with foreign businessmen in building commodity houses on the land where the supply of water, electricity and gas has been made available and the ground has been leveled, set up cooperative companies and received business license and that the Chinese party transferred the land-use right to the cooperative companies, while the foreign party was responsible for all funds in demand for the building of commodity houses and for the sales of commodity houses abroad.
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