Circular of the Ministry of Finance, the State Administration of Taxation and the Ministry of Construction on Issues Concerning the Imposition of Individual Income Tax on Income from Private House Sales

Circular of the Ministry of Finance, the State Administration of Taxation and the Ministry of Construction on Issues Concerning the Imposition of Individual Income Tax on Income from Private House Sales

Cai Shui Zi [1999] No.278

December 2, 1999

To the Finance departments (bureaux), state taxation bureaux, local taxation bureaux, construction committees (construction departments) of all provinces, autonomous regions, municipalities directly under the Central Government and cities in the specifically designated state plan, and real estate bureaux of municipalities directly under the Central Government:

With a view to improving the healthy development of resident housing market of our country, with the approval of the State Council, we hereby notify the relevant issues concerning the imposition of individual income tax on income from selling private housing as below:

Article 1 In accordance with the provisions of Individual Income Tax Law, individual income tax on income from selling private housing shall be paid under the category of "income from assignment of property".

Article 2 The taxable income from selling private housing shall be determined in accordance with the following principles:
1.
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