Property Tax in China

Information on the property tax due by residents of the People's Republic of China...

A property tax is levied on properties owned in cities, county capitals, townships and mining and industrial districts. It is levied at a rate of 1.2 percent of the value of a property (minus 10-30 percent of its original value) or at a rate of 12 percent on rental income.

Foreigners living in China must pay urban property tax. It is levied at a rate of 1.2 percent of a property's value or 18 percent of the rental income.

Property tax does not need to be paid on new buildings for three years after the building work is completed. Renovated buildings are also exempt if the renovation costs are greater than 50 percent of the cost of the construction of a new building of the same type. This exemption lasts for two years after the renovation is complete.

Stamp Duty

In China, stamp duty is commonly referred to as stamp tax. It must be paid when receiving or executing a specified list of economic documents within the country, for example sales or purchasing contracts, property and property insurance contracts, permits and licences, title transfer documents and technology contracts.

Stamp tax is paid at a rate varying from 0.005 to 0.4 percent of the fees or receipts indicated in the document, depending on its type.

Documents which are copied or duplicated and have already had stamp tax paid on them are exempt from further taxation.