How To Register for Real Estate Tax In China
The the following guidelines apply to all applications that are initial
- The application should be completed using a form that is prescribed by the department, and must be completed by the applicant or his authorized agent;
- A single application is able to be made for each real estate property that is connected and part of homogeneous units. If an exemption is requested for several parcels of real estate that aren’t connected nor being part of the homogeneous unit the request for every parcel needs to be filed. However separate applications are not required for properties belonging to churches with a noncontiguous parish or convent.
- “Contiguous property” refers to real property which is adjacent to other real estate, all of which are under the supervision of a single applicant, even though properties can be separated through public roads, railroads rights of way or waterways.
- “Homogeneous unit” means that the property is owned by a single applicant, and the management and use of the property is incorporated with and directly connected to the exempt activities that is being undertaken by the applicant.
A taxpayer must file the details of the address and state of the property, as well as the areas and number of rooms of a property the tax authorities in the area within one month of the announcement by the appraisal committee for real estate. If there is a changes in an address for the owner or transfer of the ownership right or the expansion or remodeling of the property that results in a change in the value of the property and the resulting change in value, the information must be reported to the tax authorities within 10 days from the date of alteration, transfer, or conclusion of work.
Documents that are required Register for Real Estate Tax
- A commercial and industrial business license or similar business permit
- An agreement, contract or articles of association
- The unifying organizational code
- Identification card or passport or any other valid ID proof that proves the legitimacy of the person who holds it or the responsible member of the owner
- Other documents and documents are also required by tax authorities in the autonomous region, province or municipal directly under the state council. State Council
Office Locations and Contacts
The State Administration of Taxation Address Yangfangdian Road, Haidian District on the 5th
State Administration for Industry and Commerce People’s Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
What Are All The Eligibility
- In the present, this tax is currently only applicable to companies with foreign investment or foreign-owned enterprises, as well as foreigners. It is levied on the property of a home only.
- Taxpayers are homeowners, mortgagees custodians, or users of the house property.
- Real estate tax is an additional tax that is imposed on owners, the users or custodians buildings , of either 1.2 percent of the initial value, with a certain deduction, as well as 12% rental value.
- Newly constructed buildings are exempt from taxation for three consecutive years starting with the month that the construction has been completed. Buildings that have been renovated and where the costs of renovation exceed one-half of the cost for the construction of the building will be exempt from tax for two years beginning with the month that the renovation has been completed. Other properties in the home can be granted tax exemption or reduction for specific reasons through government officials at the People’s Government at provincial level or higher.
- The name and # of ID cards, passports, or any other acceptable ID document from the institution, its legal representative or the owner
- The address of the business or residence
- The kind of registration
- The accounting system
- The type of production and the business operation
- The production scope and the scope of operation
- The total value in capital (fund) and investment
- The production term and operation
- The name and phone number of the chief financial officer.
- Other information as specified in the State Administration of Taxation
Documentation is needed
The real estate tax is a tax that is determined by the value of the home or the rent that is received and is assessed each year on buildings and land employed for commercial purposes or lease. The tax is based on the percentage that is the building’s original value. A tax reduction is typically provided by local authorities. Alternately, tax could be assessed on the value of rental. Real estate taxes are tax-deductible to CIT purposes.
Information that could be helpful
Tax Deadline for Payment
- If the home is built by the tax payer himself the taxpayer must pay the tax on real estate from the next month following the date of establishment.
- In the case of a house constructed by the designated construction firm the taxpayer must pay the real estate tax beginning the next month, after inspection and acceptance procedures are completed.
- In the case of a new commercial property that is purchased by the taxpayer the taxpayer is required to pay real estate tax starting from the next month following taking possession of the property.
- In the case of a stock property purchased through the taxpayer’s tax return, the taxpayer must pay the tax on real estate in the month following the transfer of ownership and registration change formalities.
- The tax on real estate is collected every year and is it is paid in installments. The deadline for payment of tax is determined by the provincial governments municipalities, autonomous regions, and autonomous regions.
- Other uses of the Document/Certificate
- Foreign-funded companies, foreign enterprises and other organizations, as well as foreign citizens must pay taxes on real estate in line to the Provisional Regulations of the People’s Republic of China on Real Estate Tax.
A taxpayer is punished with a fine up to 500 000 Yuan for failing to file taxes within the stipulated time frame as per the requirements in the Regulations.
The rules for the collection of the real estate tax are developed by municipal (municipal) department of taxation in line with the provisions of Regulations and submit the report on the province (municipal) local governments to be examined and approved, and submit the report on the General Taxation Administration of the Ministry of Finance of the Central People’s Government.
The following real estates shall be exempted from real estate tax:
- They are owned and operated by government and military institutions;
- They are owned and operated by licensed public and private schools;
- Houses and land in public parks historic sites, and other utilities of the public;
- Houses and land owned by to mosques as well as lamaseries.
- Houses and land that are used by other temples that have the official approval of the local governments above or at the municipal or provincial levels.