House Property Tax

The house property tax is imposed on the houses within the cities, county towns, administrative towns and industrial and mining districts. The tax is calculated on the basis of the residual value or the rental income of the house property. The taxpayers include the house property owners, managing entities of the houses (which are owned by the whole people), Pawnees, custodians and users. The tax rate is classified into two categories:

• Where the tax amount payable is calculated on the basis of the residual value of the house property, the applicable tax rate is 1.2%;
• Where the tax amount payable is calculated on the basis of the rental income of the house property, the applicable tax rate is 12%, however, where individuals lease their residential houses at the market price, the applicable rate is 4%.

The house property tax is collected on a yearly basis and paid in installments. As from January 1, 2009, foreign-invested enterprises, foreign enterprises and organizations, and foreign individuals (including Hong Kong, Macau and Taiwan-funded enterprises and organizations, and the compatriots of Hong Kong, Macau and Taiwan) shall pay the house property tax in accordance with the Provisional Regulations on House Property Tax of the People's Republic of China.

House Property Tax Explained

Taxpayers

House Property Tax is levied in cities, county capitals, townships and industrial and mining districts. Taxpayers are owners of house property, operational and managerial units of house property, mortgagees, custodians and users of house property (excluding enterprises with foreign investment, foreign enterprises and foreigners).

Tax base, tax rates and computation of tax payable

Two different rates are applied to two different cases: in one case where the tax base is the residual value after the subtraction of 10% to 30% of the original value from the original value of the property, the tax rate is 1.2% ; in the other case where the tax base is the rental income from the property, the rate is 12%. The formula for calculating House Property Tax payable is:

Tax payable = Tax base × Applicable rate

Major exemptions

House Property Tax may be exempt on the house property for:

• The own use of State organs, people' s organizations and the armed forces;
• The house property for the own use of institutions whose operating funds are allocated by State finance departments
• The house property for the own use of religious temples and shrines, parks and places of historic interest and scenic beauty
• The house property owned by individuals for non-business use
• The damaged houses and perilous houses verified as being out of use by relevant department.

Urban Real Estate Tax Explained

Taxpayers

At present, this tax is only applied to enterprises with foreign investment, foreign enterprises and foreigners, and levied on house property only. Taxpayers are owners, mortgagee's custodians and/or users of house property.

Tax base, tax rates and computation of tax payable

Two different rates are applied to two different bases:

• One rate of 1. 2% is applied to the value of house property
• The other rate of 18% is applied to the rental income from the property.

The formula for calculating House Property Tax payable is:

Tax payable = Tax base × Applicable rate

Major exemptions and reductions

• Newly constructed buildings shall be exempt from the tax for three years commencing from the month in which the construction is completed.
• Renovated buildings for which the renovation expenses exceed one half of the expenses of the new construction of such buildings shall be exempt from the tax for two years commencing from the month in which the renovation is completed.
• Other house property may be granted tax exemption or reduction for special reasons by the People's Government at provincial level or above.

• Value Added Tax
• Consumption Tax
• Business Tax
• Enterprise Income Tax
• Individual Income Tax
• Resource Tax
• Urban And Township Land Use Tax
• House Property Tax
• City Maintenance And Construction Tax
• Tax On The Use Of Arable Land
• Land Appreciation Tax
• Vehicle Purchase Tax And Vehicle And Vessel Tax
• Stamp Tax
• Deed Tax
• Tobacco Leaf Tax
• 2023 China Income Tax Tables
• 2022 China Income Tax Tables
• 2021 China Income Tax Tables
• 2020 China Income Tax Tables
• 2019 China Income Tax Tables
• 2018 China Income Tax Tables
• 2017 China Income Tax Tables
• 2016 China Income Tax Tables
• 2015 China Income Tax Tables
• 2014 China Income Tax Tables
• 2013 China Income Tax Tables
• 2012 China Income Tax Tables
• 2011 China Income Tax Tables
• 2010 China Income Tax Tables