Real Estate Tax and Urban Land Use Tax Circular - 财政部 国家税务总局关于房产税城镇土地使用税有关问题的通知
Released and effective on November 22, 2009
On November 22, 2009, The State Administration of Taxation (SAT) and Ministry of Finance (MoF) jointly released a circular clarifying certain issues about the real estate tax and urban land use tax which includes:
· Using other company's factory without paying renta– in this situation, real estate tax shall be withheld based on the real estate residual value;
· Real estate tax on a finance lease – the lessee shall pay the real estate tax (i) based on the real estate residual value from the following month on the agreed starting date that is stated in the finance lease contract, or (ii) based on the real estate residual value from the following month on the date of the finance lease contract;
· The urban land use tax of the underground construction land shall be legally collected with regards to the separately-built underground construction land. And the urban land use tax shall be paid based on the square meter determined on the obtained Land Use Right (LUR) certificate, or (i) the area of the vertical projection underground construction if the LUR certificate is not obtained or the land certificate does not state thearea. Moreover, the urban land use tax of the above mentioned underground construction land shall be collected at half the normal tax rate.