Circular of the State Council on Issuing the Interim Regulations of the People's Republic of China on Real Estate Tax and Interim Regulations of the People's Republic of China on Vehicle and Vessel Usage Tax

GuoFa [1986] No.90 September 15, 1986

(The Circular is omitted)

Attachment 1:

Interim Regulations of the People's Republic of China on Real Estate Tax

Article 1 Real Estate Tax will be levied in cities, county towns, State designated townships and industrial and mining areas. NOTE: Real estate excludes land (as all land in China remains the property of the State).

Article 2 Real Estate Tax will be paid by the owner of the property rights. Where title belongs to the entire people, the management unit will pay the Tax. Where the property has been mortgaged, the Tax will be paid by the mortgagee. Where neither the owner nor the mortgagee lives in the locality, where ownership of the property is yet to be established or where disputes concerning the rental or mortgage of the property are yet to be settled, the Tax will be paid by the custodian or the user of the property.

The owners, management units, mortgagees, custodians or users listed in the above paragraph will be referred to collectively as obligatory taxpayers (hereinafter referred to collectively as taxpayers).

Article 3 The Tax will be calculated on the residual following the subtraction of between 10% and 30% of the original value of the property. Details of the scope of the subtraction will be determined by the people's government of the province, autonomous region or municipality directly under the Central Government.

Should the property's original value not be available as a basis, the local tax organ will examine and decide on an amount with reference to the value of other real estate of a similar nature.

Where the property is leased, the rental income from the property will be used as a basis for Tax calculations.

Article 4 The Tax will be calculated on the residual value of the property at a rate of 1. 2%, or on the rental income from the property at a rate of 12%.

Article 5 The following categories of real estate will be exempt from paying the Tax:

(1) Real estate for the private use of State organs, people's organisations and the armed forces;

(2) Real estate for the private use of institutions whose operating expenses are allocated by State finance departments;

(3) Real estate for the private use of religious temples and shrines, parks and places of historic interest and scenic beauty;

(4) Real estate owned by individuals for non-business purposes;

(5) Other real estate approved by the Ministry of Finance as tax exempt.

Article 6 With the exception of those included in Article 5 of these Regulations, taxpayers who have bona fide difficulties in meeting tax payments may enjoy a reduction of or exemption from the tax for a set period to be determined by the people's government of the province, autonomous region or municipality directly under the Central Government.

Article 7 The Tax will be collected annually with payment by instalments. Payment deadlines will be determined by the people's government of the province, autonomous region or municipality directly under the Central Government.

Article 8 Control of the collection of the Tax will be carried out in accordance with the "Interim Regulations of the People's Republic of China on the Control of Tax Collection".

Article 9 The Tax will be collected by the taxpayer's local tax organ.

Article 10 The Ministry of Finance is responsible for the interpretation of these Regulations. Detailed implementing rules will be formulated by the people's government of the province, autonomous region or municipality directly under the Central Government and a copy will be filed with the Ministry of Finance.

Article 11 These Regulations shall enter into force as of October 1, 1986.

Attachment 2:

Interim Regulations of the People's Republic of China on Vehicle and Vessel Usage Tax

Article 1 All obligatory taxpayers (hereinafter referred to as taxpayers) of Vehicle and Vessel Usage Tax, who are the representatives of units or individuals who possess and also use a vehicle or vessel within the territory of the People's Republic of China, shall pay Vehicle and Vessel Usage Tax in accordance with the provisions of these Regulations.

Article 2 Levies for the use of a vessel will be calculated in accordance with the "Vessel Tax Schedule" attached to these Regulations. Levies for the use of a vehicle will be determined by the people's government of the province, autonomous region or municipality directly under the Central Government within the scope stipulated in the "Vehicle Tax Schedule" attached to these Regulations.

Article 3 The following vehicles or vessels are exempt from Vehicle and Vessel Usage Tax:

(1) vehicles or vessels for the private use of State organs, people's organisations and the armed forces;

(2) vehicles or vessels for the private use of institutions whose operating expenses are allocated by State finance departments;

(3) fishing vessels with a deadweight capacity of less than one tonne;

(4) landing stages and pontoons specifically for the loading and unloading of passengers and goods and the storage of goods;

(5) various types of fire fighting vehicles and vessels, street sprinkler vehicles, prison vans, police vehicles, vehicles used in epidemic prevention, ambulance vehicles and vessels, garbage disposal vehicles and vessels, vehicles and vessels used in port work and vessels used in construction;

(6) vessels which pay vessel tonnage tax in accordance with the relevant regulations;

(7) other vehicles or vessels approved by the Ministry of Finance as tax exempt.

Article 4 With the exception of those included in Article 3 of these Regulations, taxpayers who have bona fide difficulties in meeting tax payments may enjoy a reduction or exemption from Vehicle and Vessel Usage Tax for a set period to be determined by the people's government of the province, autonomous region or municipality directly under the Central Government.

Article 5 The levying of or exemption from Vehicle and Vessel Usage Tax will be determined by the people's government of the province, autonomous region or municipality directly under the Central Government where individuals who possess bicycles or other non-motorised vehicles or vessels for private, non-business use are concerned.

Article 6 Vehicle and Vessel Usage Tax will be collected annually with payment by instalments. Payment deadlines will be determined by the people's government of the province, autonomous region or municipality directly under the Central Government.

Article 7 Control of the collection of the Tax will be carried out in accordance with the provisions of the "Interim Regulations of the People's Republic of China on the Control of Tax Collection".

Article 8 Vehicle and Vessel Usage Tax will be collected by the taxpayer's local tax organ.

Article 9 The Ministry of Finance is responsible for the interpretation of these Regulations. Detailed implementing rules will be formulated by the people's government of the province, autonomous region or municipality directly under the Central Government and a copy will be filed with the Ministry of Finance.

Article 10 These Regulations shall enter into force as of October 1, 1986.

Promulgated by The State Council on 1986-9-15