Chongqing Municipality, Tentative Measures for the Implementation of the Pilot Reform of the Levy of Property Tax on Certain Residential Premises for Individuals

Promulgated: January 28 2011

Effective: as of date of promulgation

Applicability: The pilot project for levy of property tax shall be launched in nine districts of the main city (Article 1).

Main contents: The following residential premises shall be subject to property tax:

(1) villas owned by individuals;

(2) high-end residential premises newly purchased by individuals, i.e. residential premises the unit transaction price of which reaches twice or more the average price of commodity residential premises newly-built in the nine districts of the main city in the preceding two years; and

(3) the second or more unit of ordinary residential premises newly purchased by individuals without household registration, or any enterprise or work in Chongqing (Article 2).

The taxable value of the residential premises shall be the transaction price of the property (Article 4). The applicable tax rate shall be 0.5% for villas and high-end residential premises with a unit transaction price of less than three times the average transaction price of commodity residential premises newly built in the nine districts of the main city in the preceding two years; 1% for those with a unit transaction price three (inclusive) to four times such average price; and 1.2% for those with a unit transaction price four times or more such average price. The applicable tax rate for the second or more unit of ordinary residential premises newly purchased by individuals without household registration, or any enterprise or work in Chongqing shall be 0.5% (Article 5).