Ministry of Finance and State Administration of Taxation, Circular on Revising Relevant Policy on Real Property Business Tax

Issued: June 6 2006
Effective: June 1 2006

Main contents: From June 1 2006, business tax will be imposed on sales of residential premises of less than five years of purchase by individuals. Business tax shall be exempted for sales of ordinary residential premises of five years or more of purchase by individuals. For sales of non-ordinary residential premises of five years or more of purchase by individuals, business tax shall be imposed on the balance after subtracting the purchase price of the premises from the sales revenue.
Related legislation: State Council General Office, Transmission of the Circular on the «Ministry of Construction and Other Departments, Opinion on Adjusting the Structure of the Supply of Residential Premises and Stabilization of the Prices of Residential Premises» , 2006; State Council General Office, Transmission of the Circular on the «Ministry of Construction and Other Departments, Opinion on Duly Carrying out the Work Associated with the Stabilization of the Prices of Residential Premises» , 2005; Circular on Strengthening the Administration of Tax Collection on Real Property, May 27 2005, CLP 2005 No.5 p.16 and Circular on Several Specific Issues on the Implementation of Real Property Tax Collection Policy, 2005.