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	CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE RELEVANT POLICIES FOR REAL ESTATE BUSINESS TAXES

	(No. 75 [2006] of the Ministry of Finance, June 16, 2006)


SUBJECT : REAL ESTATE BUSINESS; ADJUSTMENT
ISSUING DEPARTMENT : MINISTRY OF FINANCE OF THE PEOPLE'S REPUBLIC OF CHINA, STATE ADMINISTRATION OF TAXATION
ISSUE DATE : 06/16/2006
IMPLEMENT DATE : 06/01/2006
LENGTH : 407 words
TEXT :

In order to implement and carry into effect the Circular of the General Office of the State Council on Forwarding the Opinions of the Ministry of Construction and Other Departments on Adjusting the Housing Supply Structure as well as Stabilizing Housing Prices (No. 37 [2006]) of the General Office of the State Council), crack down speculation or any investment-oriented demand of house purchase, and further intensify the administration of business tax collection on individuals' house transfer, we hereby notify the relevant issues regarding business taxes as follows:

As of June 1, 2006, where any individual sells a house that he has purchased for less than 5 years, the business tax thereof shall be collected in full amount. Where any individual sells an ordinary residential house that he has purchased for no less than 5 years, the business tax thereof shall be exempted. Where any individual sells a non-ordinary residential house that he has purchased for no less than 5 years, the business tax thereof shall be collected on the basis of the balance upon deduction of the purchase price from the sales incomes.

With regard to the aforesaid policies, the standards for ordinary or non-ordinary residential houses, the specific procedures for tax exemption, the time of house purchase, the invoices as produced, the deduction credence for balance-based tax collection, the house procurement by non-purchase means as well as the relevant provisions on tax collection administration shall be implemented according to the relevant provisions of the Circular of the General Office of the State Council on Forwarding the Opinions of the Ministry of Construction and Other Departments on Doing a Good Job in Stabilizing Housing Prices (No. 26 [2005] of the General Office of the State Council), the Circular of the State Administration of Taxation, the Ministry of Finance and the Ministry of Construction on Intensifying the Administration of Real Estate Tax Collection (No. 89 [2005] of the General Office of the State Council) and the Circular of the State Administration of Taxation on Several Specific Issues in the Implementation of the Policies for Real Estate Tax Collection (No. 172 [2005] of the General Office of the State Council).

The local finance and taxation departments at all levels shall strictly implement the tax policies, intensify the tax collection and administration and shall report the problems arising in the process of implementation, if any, to the Ministry of Finance and the State Administration of Taxation in a timely manner.