The PRC Deed Tax Tentative Regulations issued by the State Council on 7th July 1997 with effect from 1st October 1997.
Deed tax is payable by the transferee upon the transfer of landed property. Transfer of landed property takes the following ways: -
- Acquisition of land use right from the State;
- Transfer of land use right including transfer by sale, by exchange, or gift,
- Purchase and sale of real property situated on lands.
Contribution of capital to a company in a form of land use right, or real property, settlement of debt by transfer of property title, or obtaining property title by winning in a lottery are deemed to be transfer of landed property.
Deed tax rate ranges from 3% to 6%, to be adjusted by provincial governments, and the four municipalities directly administered by the Central People's Government.