Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning Value-added Tax on Land

Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning Value-added Tax on Land

Cai Shui [2006] No. 21

March 2, 2006

The public finance departments or bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designed in the state plan, and the finance bureau of Xinjiang Production and Construction Corps.:

In pursuance of the spirit as embodied in the Interim Regulations of the People's Republic of China on Land Value-added Taxes (hereinafter referred to as the Regulations) and the detailed rules for the implementation thereof as well as relevant provisions, we hereby clarify the relevant issues concerning land value-added taxes as follows:

I. As for issues concerning the tax collection and exemption in the sale of residential houses of ordinary standard as built by taxpayers as well as in the transfer of ordinary residential houses by individual residents
The "residential houses of ordinary standard" as mentioned in Article 8 of the Regulations and the "ordinary residential houses" as mentioned in Article 3 of the Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Tax Policies for the Real Estate Market (Cai Shui Zi [1999] No. 210) shall be recognized all according to the standards for the "small or medium-sized ordinary residential houses at moderate and low prices" as formulated and publicized to the general public by the people's governments of each province, autonomous region or municipality directly under the Central Government in accordance with the Notice of the General Office of the State Council transmitting the Opinions on Doing a Good Job in Stabilizing the Real Estate Price of the Ministry of Construction and Other Departments (Guo Ban Fa [2005] No.
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