Circular of Ministry of Finance, SAT on Urban Land Use Tax Policies and Etcetera Concerning Entities Settling Employment of the Disabled
I. About urban land use tax policies and etcetera concerning entities settling employment of disabled
For entities which settle employment of disabled people at a rate of 25% per month of all staff member at work in the fiscal year, and the actual number of settled disabled people is above 10, urban land use tax of the fiscal year could be reduced or exempted. Specific reduce or exemption rate and management measures will be determined by finance and tax authority of provinces, autonomous region and municipalities directly under the Central Government.
Article 18, Item 4 of Explanation and Interim Regulations of SAT on Several Specific Issues Concerning Land Use Tax, Guoshuidizi No. 15, 1988 will cease to be effective at the same time.
II. About housing property tax during rental exemption period of rented housing property
For rented housing property, if there’s an agreed tenure exemption period in the renting contract between the renter and tenant, the owner of the property should pay housing property tax according to the original value of the housing property.
III. About collection of housing property tax calculating the land value into original value of housing property
For housing property on which taxes are calculated by the original value, no matter in what way confirmed and calculated on accounting, the original value should include the land value, which encompasses the costs paid for obtaining the land use rights, expenditures and fees for developing the land, etc. If parcel cubage is under 0.5, the land space of the land value which will be calculated in the original value of the housing property shall be determined by twice of the construction space.
Ministry of Finance, SAT
December 21, 2010