CHAPTER I GENERAL PROVISIONS
CHAPTER II ORGANIZATIONS AND THEIR DUTIES
CHAPTER III PROTECTION AND IMPROVEMENT OF ENVIRONMENT
CHAPTER IV ENVIRONMENTAL SUPERVISION
CHAPTER V PREVENTION AND CONTROL OF ENVIRONMENTAL POLLUTION AND
OTHER PUBLIC NUISANCE
CHAPTER VI LEGAL LIABILITY
CHAPTER VII SUPPLEMENTARY PROVISIONS
Article 1 Environmental protection is a basic state policy of China. With a view to protecting and improving living conditions and ecological
environment, preventing pollution and other public nuisance, safeguarding human health, promoting the coordination
of environmental protection and economic construction as well as social development, these Regulations are formulated
in accordance with the Environmental Protection Law of the People’s Republic of China and relevant laws and regulations,
and in the light of the city’s actual conditions.
Article 2 The environment referred to in these Regulations means the whole of natural and artificially transformed natural physical elements,
which influences the existence and development of human beings, including atmosphere, water, seas and oceans, land,
mines, forests, grassland, wildlife, natural and cultural relics, nature protection areas, scenic spots, cities and villages,
etc..
Article 3 These Regulations shall apply to the administrative divisions of this Municipality.
Article 4 The principles of the work of protecting the city’s environment are as follows:
1. Putting prevention first, combining precaution with treatment, and tackling the problems in a comprehensive way;
2. Combining utilization of resources with their conservation;
3. Holding the polluter responsible for control of pollution and compensation for damages;
4. Combining unified supervisory administration with individual responsibility for assigned work; and
5. Combining professional management with mass participation.
Article 5 People’s government at all levels and their departments, and all units shall attach importance to publicity and education
about environmental protection, popularize scientific knowledge of environmental protection, enhance supervision
through public opinions over environmental protection, and heighten people’s environmental consciousness and sense of
legality.
Article 6 A citizen has the right to enjoy good environment and the obligation to protect the environment. Every unit and individual
person have the right to inform against or complain about any act causing environmental pollution or destruction.
Article 7 The municipal, district and county people’s governments shall commend or reward any unit or individual person that has made
marked achievements in environmental protection and improvement, and in enforcement of these Regulations.
CHAPTER II ORGANIZATIONS AND THEIR DUTIES
Article 8 The municipal, district and county people’s governments shall be responsible for the environmental quality within their respective
jurisdiction. Each government shall set a target of environmental protection during its term of office, draw up an annual
working plan according to the environmental protection program, and practise the system of chief executive assuming the
responsibility for environmental protection.
The municipal, district and county people’s governments shall each make an annual work report on the environmental protection
and on the fulfillment of the environmental protection target during their respective term of office to the people’s
congress or the standing committee of the people’s congress at the same level.
The township and town people’s government shall be responsible for the environmental protection within their respective
jurisdiction as required by the related district or county people’s government, and shall report regularly to the people’s
congress at the same level.
The sub-district office shall be responsible for the environmental protection in the region as authorized by the related district
people’s government.
Article 9 The Municipal Environmental Protection Bureau (hereinafter called “MEPB”) is the administrative department of the Municipal
People’s Government responsible for environmental protection, which exercises unified supervision and control over the city’s
environmental protection.
The district or county environmental protection bureau (hereinafter called “DCEPB”) is the administrative department
of the People’s government at the same level, responsible for environmental protection, which exercises unified supervision
and control over environmental protection within its jurisdiction under the leadership of MEPB in professional works.
Article 10 The main duties of MEPB are as follows:
1. To take the responsibility of implementing and enforcing the environmental protection law and regulations in the
city, and to supervise and direct the environmental protection work in each district and county;
2. To draw up the municipal environmental protection program and plan, and to participate in the formulation of the national
economic and social development program, the national land program, the district (county) regional program and the overall
planning of the city;
3. To draw up the municipal environmental protection norms, standards, and the preventive countermeasures against pollution;
4. To participate in making policies on the city’s key construction projects, and to conduct direct supervision and administration
over large-scale construction projects, specific projects, specified areas and pollutants;
5. To determine areas where the total quantity of pollutants is to be controlled, and the related targets for the areas;
6. To organize the monitoring of the city’s environment, and to investigate and settle major pollution accidents and disputes;
and
7. To organize researches in environmental science and important environmental projects, to spread advanced experience
and technology relating to environmental protection, to develop environmental protection industry and to carry
out international cooperation and exchanges on environmental protection.
Article 11 The main duties of DCEPB are as follows:
1. To take the responsibility of implementing and enforcing the environmental protection law and regulations in their
respective jurisdiction;
2. To draw up the environmental protection program and plan for their respective jurisdiction;
3. To fulfill the total pollutant discharge target and to exercise supervision and inspection in their respective jurisdiction;
4. To organize investigation on regional environmental quality, to monitor pollution sources, and to supervise and urge
environmental control;
5. To popularize scientific knowledge of environmental protection and spread advanced technology for environmental protection;
and
6. To investigate and settle pollutant accidents and disputes.
Article 12 Administrations of public security, transportation, railway, civil aviation, ocean, harbor superintendency, fishery and
fishing harbor superintendency and the environmental protection departments of the army shall exercise supervision and
administration over the prevention and control of environmental protection in accordance with the stipulations of relevant
laws and regulations.
Every administrative department responsible for land, agriculture, gardening, environmental sanitation, water conservancy,
mines shall exercise supervision and administration over resources and ecological environmental conservation in accordance
with the stipulations of the relevant laws and regulations.
Every relevant administrative department of the municipality, district and county shall assist MEPB and DCEPB with the enforcement
of these Regulations according to their respective functions.
CHAPTER III PROTECTION AND IMPROVEMENT OF ENVIRONMENT
Article 13 The Municipal People’s government shall bring its environmental protection program into line with the national economic
and social development program, the national land program and the overall planning of the city.
The environmental protection program drawn up by MEPB or DCEPB shall be submitted to the people’s government at the same level
for approval before its implementation, and be reported to the environmental protection bureau at a higher level for
the record.
Article 14 MEPB shall, jointly with the relevant departments and according to the Shanghai City’s overall planning and the areas
where the state environmental quality standards are applicable, classify and designate environmental functional zones, and
this program shall be made public and put into effect after being approved by the Municipal People’s Government.
Article 15 Varied ways shall be explored to hear public opinions on the formulation of the environmental protection program or on
the construction of any large or medium-scale project or specific project, which may cause pollution to the environment.
Article 16 The Municipal People’s Government shall, according to the state quantitative check index for comprehensive environmental
protection, set the target and measures for the city’s comprehensive environmental control, and urge the district and
county people’s governments and the relevant department to fulfill the target and implement the measures.
Article 17 The city’s industrial layout shall, in accordance with the requirements of the city’s (township’s or town’s) planning, industrial
structure and ecological conservation, meet the following conditions:
1. No industrial production project is to be built in commercial centre, and the existing ones must be relocated;
2. No construction or expansion of any pollutant industrial project is to be carried out in the city’s central area, and the existing
ones must be adequately regulated or relocated;
3. A new industrial project to be built shall be located in the industrial area fixed by the planning, and the pollutants
must be disposed concentratively; and
4. Paper-making, electroplating, leather-working, printing and dyeing, and other industrial projects with serious pollution must
be located in restricted areas.
Article 18 The municipal, district and county people’s governments shall increase investment every year in water supply, drainage,
sewage treatment, concentrative disposal of solid waste, fuel gasification, centralized heat supply system, greening,
environmental sanitation, river pollution control and other environmental facilities in the city, and shall ensure the availability
of funds for daily maintenance and management.
Article 19 The construction of a development zone shall meet the requirements of an ecological city, in which the functional zones
shall be strictly classified, the industrial structure rationally arranged, the building density controlled and the green
land area ensured.
In a city’s development zone, the centralized heat supply system, the pollutant treatment and disposal facilities, the pollutant
collection and conveyance system shall be established, and the environmental quality standard in the zone shall be more
rigid than in other areas.
Article 20 Besides the designated conservation area for water source on the upper reaches of the Huangpu River, the Municipal People’s
Government shall delimit conservation areas on the Yangtze River and for the sources of drinking water fixed by the city’s planning.
The district and county people’s government shall designate conservation areas for the sources of drinking water for urban
and rural residents.
A conservation area for the sources of drinking water shall set the target of improving water quality, and prohibit or restrict
any act that may cause pollution to water sources.
The designation and administration of trans-district or trans-county conservation areas for water sources shall be settled
by MEPB with the relevant district or county people’s government through consultation.
Article 21 The municipal, district and county people’s governments shall strengthen the protection of natural ecological areas,
natural distribution areas for rare and endangered wild animals and plants, conservation areas for water sources, cultural
relics, ancient trees and famous woods.
No pollutant project shall be built in the Chongming Dongtan Migratory Birds Protection Area, the Jinshan Sandao Marine Ecological
Protection Area, the Dianshan Lake Water Source Conservation Area, the Sheshan Scenic Spot, the Hengsha State-level Tourist
Area and other areas under special protection fixed by the city’s planning. The existing ones shall be required to reach the
pollutant discharge standard and the total control index, or must be relocated.
Article 22 People’s governments at all levels shall attach importance to the protection of agricultural environment, and prevent the occurrence
and development of ecological imbalance, such as soil pollution, vegetation destruction, water loss, soil erosion and
land salinization.
People’s governments at all levels shall reinforce water source conservation and administration of waters, and
prohibit direct discharging of pollutants and dumping of waste into the waters.
The exploitation and utilization of natural resources such as land, water, minerals, fishery and wildlife, shall be
governed by the stipulations of relevant state laws and regulations. Anyone causing damage to natural resources shall
be required to make compensation for the damage.
Article 23 Discharging pollutants and dumping refuse into ocean, or undertaking coastal project construction, off-shore oil exploration
and exploitation, marine transportation and ship dismantlement on mud flat shall be governed by the stipulations of relevant
laws and regulations.
CHAPTER IV ENVIRONMENTAL SUPERVISION
Article 24 MEPB may, in the light of the actual conditions of the city, set regional standards for the items that are not covered in the
state environmental quality standards and in the state pollutant discharge standards, and set more rigid regional pollutant
discharge standards for items that are covered in the state pollutant discharge standards. The formulated regional standards
shall be made public and put into effect after being approved by the Municipal People’s Government.
Article 25 The environmental supervision agencies set up by MEPB and DCEPB shall be responsible for daily supervision of pollutant sources,
for investigation and handling of unlawful practice, collection of fees for discharging pollutants and for discharging
pollutants above standards within their respective jurisdiction.
Article 26 MEPB shall draw up regional environment monitoring norms and technical standards, and jointly with relevant departments, set
up an environment monitoring network.
Environment monitoring agencies under MEPB and DCEPB are responsible for the routine monitoring of environmental factors, the
supervision and monitoring of pollutant sources within their respective jurisdiction. Their data on supervision and monitoring
shall form the basis for environmental supervision.
The environment testing data of each department and unit may also be regarded as the basis for supervision on environmental
protection after being confirmed by an environment monitoring agency under MEPB or DCEPB.
If the party concerned disagrees with the monitoring data, it may apply for a recheck and affirmation to the environment monitoring
agency under an environmental protection bureau at the next higher level within the prescribed time.
Article 27 Before the annual World Environment Day (June 5), MEPB shall issue a bulletin on the city’s environmental situation in the previous
year.
Article 28 A system of environmental impact assessment shall be adopted in every construction project that is likely to affect the environment.
A construction unit shall entrust a qualified environmental impact assessment agency to prepare an environmental impact report
(table) for every construction project, which shall be submitted for approval to MEPB or DCEPB according to their respective
examination and approval competence before a project is to be registered.
The environmental impact assessment agency for construction project shall be responsible for its assessment conclusion.
Article 29 The pollution prevention and treatment facilities for every construction project shall be designed, built and put into production
or use together with its principal construction works at the same time. The original pollution relating to the construction
project shall be controlled concurrently.
After the completion of a construction project, the pollution prevention and treatment facilities must be subjected to check and
acceptance by the environmental protection bureau that originally examined and approved the environmental impact
report, before being put into production or use. If a trial production or operation is required, approval must be
obtained from the environment protection bureau, and the pollution prevention and treatment facilities must operate at the
same time.
Article 30 Any unit or self-employed worker discharging pollutants shall, according to relevant stipulations, declare accurately to
the environmental protection bureau in the locality and register with it the kind, quantity, concentration, mode of discharge
and direction of the discharged pollutants, the facilities and type of pollution treatment, and provide technical data
and information concerning prevention and treatment of pollutants.
If any change needs to be made in the kind, quantity, concentration, mode of discharge or direction of the discharge
pollutants, the alteration procedures for declaration and registration must be completed within 30 days before the change
is made.
Article 31 The pollutant discharge by a unit discharging pollutants in the total pollutant discharge control area shall come up to the
set discharge standard and the total control index.
On the precondition that the improvement of environmental quality in a region is ensured, the unit concerned may transfer part
of its pollutant discharge quota for valuable consideration upon the approval of MEPB.
Article 32 A system of pollutant discharge licence shall be adopted in the city. MEPB shall, jointly with relevant departments, determine
the areas, kinds and objects to be licensed.
MEPB or DCEPB shall examine and approve applicant unit for discharging of pollutants and issue the “Pollutant Discharge Licences”
according to the requirements of the regional total pollutant discharge control.
Article 33 Any unit or self-employed worker discharging pollutants above the state or municipal standard must pay fees for discharging
excess pollutants according to relevant stipulations. Where the state and the city authorities stipulate payment of fees
for discharging pollutants, the stipulations must be implemented. Payment of the fees for discharging pollutants
above standard and the fees for discharging pollutants shall not relieve the party concerned of the responsibility for
pollution treatment and compensation and other responsibilities set by relevant laws.
Fees for discharging pollutants above standard and fees for discharging pollutants shall be managed and used according to the
stipulations of the relevant state laws and regulations.
Article 34 In the case of the discharge of pollutants above standard or the total control index, causing severe environmental pollution,
a time limit must be set for its treatment.
The municipal, district and county people’s government shall make a decision on pollutant treatment within a specified
period of time according to their respective competence, and may also authorize MEPB and DCEPB to make such decision, which
shall be reported to the people’s government at the same level for the record.
Article 35 MEPB or DCEPB and their environment monitoring agencies shall, according to law, exercise on-the-spot supervision
and investigation on every unit and self-employed worker under their administration. In the process of an inspection,
a uniform credential of supervision and inspection printed by MEPB shall be produced, and the technology and professional
work of the examinee shall be kept secret.
The examinee shall report the situation accurately, and provide necessary data and information. No concealment, refusal
or obstruction is allowed.
Article 36 The prevention and control of trans-district or trans-county environmental pollution and destruction shall be settled
through consultation by MEPB with the relevant district or county people’s government. If no settlement can be reached
through consultation, the Municipal People’s Government shall make a decision.
CHAPTER V PREVENTION AND CONTROL OF ENVIRONMENTAL POLLUTION AND OTHER
Article 37 The departments and units concerned shall work out plans for preventing and controlling pollution, adopt advanced techniques
and technology, and harness pollution sources as required by the environmental protection program and the comprehensive
environmental control.
Any unit or self-employed worker causing environmental pollution and other public nuisance shall adopt a system of responsibility
for pollution control, set up pollutant processing facilities and ensure their normal operation, and perfect the file of
operation.
If the pollutant processing facilities fail to operate regularly owing to breakdown or overhaul, the production must be stopped
or decreased, or other measures be taken, and a report must be submitted to the environmental protection bureau in the
locality within 24 hours.
If the pollutant processing facilities are to be dismantled or left idle, a written application must be submitted to MEPB
or DCEPB for approval within 30 days before any action is taken.
If MEPB or DCEPB fails to make a decision within 20 days from the date of receipt of the written application, an approval is
to be taken for granted.
Article 38 Adoption of clean technology featuring energy saving, low consumption, no pollution or minimal pollution, and clean production
shall be encouraged.
For the introduction of technology, equipment and construction project from abroad, the requirements of no pollution or minimal
pollution must be met. If the introduced items may cause pollution while the necessary treatment technology or equipment
is not available in China, the required treatment technology or equipment must be imported concurrently.
Use of any technology or equipment causing severe environmental pollution, which are to be discarded as explicitly ordered
by the state and the city authorities, is prohibited.
Article 39 The discharge of waste gas must be brought under strict control and the following conducts are banned;
1. The discharge of toxic and noxious gas and dust above the set discharge standard;
2. The construction, renovation or expansion of any thermal power plant with no desulphurisation equipment installed;
3. The burning of substances that give off toxic and noxious smoke or dust and foul odor in a non-designated area;
4. The producing of a large amount of dust and airborne dust in the process of construction, transportation, loading and
unloading and production;
5. The discharge of waste gas from powered vehicles and vessels above the set standard;
6. The exhaustion of unpurified smoke and oil fume in catering services and canteens; or
7. The installation of air conditioners and cooling facilities that affect the environment and the life of other people.
Article 40 Sewage discharge must be brought under strict control and the following conducts are banned:
1. Unscrupulous discharge of oils, acid and alkali fluids, lethal waste water, radioactive waste water of high or medium intensity,
and non- sterilized pathogen bearing sewage;
2. Unscrupulous discharge of below-standard industrial waste water, domestic sewage, building slurry, livestock and poultry
sewage, aquatic cultivation farm sewage, slaughterhouse sewage and other sewage in production and operation activities;
3. The connection of below-standard sewage pipes to a sewage processing plant or the discharge of below-standard sewage
from the sewage processing plant;
4. Unscrupulous discharge of a ship’s sewage nonconforming to the discharge standard; or
5. Artificially pumping back of underground water of below-standard quality.
The sewage received into the regional sewage catch-pipe shall reach the set standard and the total control index. If such sewage
does not reach the standard or index, it must be pre-treated.
Article 41 Noise pollution must be brought under strict control and the following conducts are banned:
1. The setting up of a production or an operation project that causes noise pollution in residential quarters, cultural
and educational quarters and other special areas;
2. The use of high-powered loudspeakers that cause noise pollution in public places such as streets, parks, markets and schools,
except in the case of special needs as approved by the environmental protection bureau in the locality;
3. Construction operation during the set time at night affecting the sleep of the residents, except in the case of emergencies,
rush repairs and necessary consecutive operation as approved by MEPB or DCEPB;
4. Undertaking of profit-making cultural entertainment activities affecting the life of the residents; or
5. The honking of motor vehicles and vessels in non-honking quarters.
Article 42 Solid waste pollution must be brought under strict control and the following conducts are banned:
1. The mixing of dangerous waste with domestic refuse or other waste;
2. Unscrupulous dumping of domestic refuse, faeces, industrial residue or other solid wastes;
3. Unscrupulous dumping and burying of waste residue containing soluble lethal toxicants;
4. The spilling of domestic refuse, industrial residue or other solid wastes in process of loading and unloading and transportation;
or
5. The storing of residue containing soluble lethal toxicants, without taking precautions against water, leak and loss.
A site chosen to serve as store ground, treatment ground or disposal ground of solid wastes shall be approved by MEPB; the
construction and operation of the site shall be supervised by MEPB.
Article 43 A unit or individual person that uses nuclear installations, radioactive isotopes or mineral resources with associated radioactivity
shall subject radioactive wastes to safety treatment. Radioactive solid wastes must be put under strict control and
be disposed of concentratively according to relevant regulations.
Radiation devices must be equipped with shields to meet the requirements of protection against radiation.
A unit that produces electromagnetic radiation must install protection facilities.
Article 44 The production, sale and use of pesticides must be in conformity with the state provisions on pesticide management.
Control over transportation and storage of pesticides and over disposal of expired and ineffective pesticides must be tightened
to prevent environmental pollution.
Article 45 Transfer of dangerous wastes, radioactive wastes and refuse on the control list of the state and the city from abroad or
other provinces and cities into this city are forbidden.
If there is a special need for the importation of wastes as raw materials, energy source or for recycle, an approval must
be obtained according to relevant state regulations before the wastes are admitted into the city.
Transfer of pollutants or production projects that may cause severe pollution to any unit or individual person incapable of
disposing of or treating pollutants in the city or in other provinces and cities, is forbidden.
Article 46 If a pollution accident or other sudden pollution incident happens, the unit or self-employed worker involved must take emergency
measures, notify the units and residents that may fall victims to the pollution, report in no time to the local environmental
protection bureau and the relevant departments, and be ready to be investigated and dealt with.
If the environment is seriously polluted and the residents’ lives, property and safety are threatened, MEPB or DCEPB must
report to the people’s government at the same level and the next higher environmental protection bureau. The people’s government
concerned and the relevant departments shall take effective measures to remove or reduce the pollution dangers.
Article 47 A standard for environmental protection technology shall be set up for industrial products likely to cause environmental pollution.
Production, sale, or use of industrial products non-conforming to the
|
The Ministry of Finance
Circular of the Ministry of Finance and the State Administration of Taxation on Printing and Distributing the Rules for the Implementation
of the Interim Regulations of the People’s Republic of China on Land Value-added Tax
CaiFaZi [1995] No.6
January 27, 1995
Each ministry and commission, directly subordinate institution of the State Council, the people’s governments, the finance departments(bureaus),
the state tax bureaus, local tax bureaus, the special commissioner office of finance supervision bureau of various provinces, autonomous
regions, municipalities directly under the Central Government and municipalities separately listed on the State plan:
“Rules for the Implementation of the Interim Regulations of the People’s Republic of China on Land Value-added Tax” is now issuing
to you, please carry out seriously. Attachment:Rules for the Implementation of the Interim Regulations of the People’s Republic of China on Land Value-added Tax
Article 1
The rules are formulated in accordance with Article 14 of the Interim Regulations of the People’s Republic of China on Land Value-
Added Tax (hereinafter to be referred to as Regulations for short, pls. see CEN NO.3 1994).
Article 2
The transfer of the right to use a tract of State-owned land, and property right of buildings and the attached installations thereon
stated in Article 2 of the Regulations refers to the sale or other paid transfers of the real estate. It does not include the transfer
of a real estate through inheritance or donation without compensation.
Article 3
The State-owned land stated in Article 2 of the Regulations refers to land defined as such by the State Law.
Article 4
The buildings mentioned in Article 2 of the Regulations refer to all buildings constructed on the land, including all kinds of auxiliary
installations above and under ground.
The attached installations mentioned in Article 2 of the Regulations refer to all installations on the land which cannot be removed
and will be damaged once removed.
Article 5
The income stated in Article 2 of the Regulations refers to all the prices and related proceeds received for the transfer of the
real estate.
Article 6
The units stated in Article 2 of the Regulations refer to all kinds of enterprises, institutions, government organs, social groups
and other organizations.
The individuals mentioned there include self-employed business people.
Article 7
The items to be deducted from the land added-value in calculation as stipulated in Article 6 of the Regulations are as follows:
1.
The lease price paid for the use of the land refers to the amount paid by the taxpayer for obtaining the land-use right and related
expenses paid according to State regulations.
2.
The costs and expenses spent in land development and construction of new buildings and auxiliary installations (hereinafter referred
to as real estate development for short) refer to the real costs borne by the taxpayer for the land development project (hereinafter
referred to as costs of real estate development for short). The costs include compensation fees for land requisition, the dismantling
of buildings and the evacuation involved, expenses for pre-construction engineering, construction and installation, infrastructural
projects and supplementary public utilities and expenses indirectly related to the development project.
The compensation fees for land requisition, dismantling buildings and evacuation include fees for land requisition, the occupation
of farmland, the resettlement of labour force, the net expenses incurred as compensation for dismantling and removing the attached
items above and under ground, and fees for arranging houses for evacuation and resettlement.
Pre-construction engineering expenses include expenses for planning and design, feasibility studies, hydrological and geological research,
surveys and mapping, and for building electricity, running water and gas supply projects for the construction site and ensuring smooth
road transport.
The construction and installation expenses include expenses on construction and installation paid to building teams which have contracted
for the development project and also such expenses paid for self-managed development project.
Expenses for infrastructural projects include expenses for road building, water, electricity and gas supply projects, sewage and flood
water discharge projects, telecommunications, lighting installations, environmental protection and afforestation etc in the development
area.
Expenses for building supplementary public utilities include expenses for building those supplementary public utilities in the development
area which can not be paid transferred.
Expenses indirectly involved in the development project refer to expenses directly used for organizing and managing the development
project, including wages, workers’ fringe benefits, depreciation funds, repair funds, office expenses, fees for running water and
electricity, labour protection costs and expenses for houses used for evacuation and resettlement.
3.
Expenses for land development, construction of new buildings and auxiliary installation refer to the selling expenses, management
fees and financial expenses related to the real estate development project.
The expenditure for paying the interests of financial expenses can be deducted in full provided that it can be calculated and taken
as items involved in the transfer of the real estate and is confirmed by certificates of financial institutions. But the total amount
of the interests must not exceed the total calculated according to commercial bank loans of the same type and for the same term.
The other expenses for real estate development to be deducted must be kept within five percent of the total cash value calculated
according to Subparagaphs 1 and 2 of the present article.
As for those expenses whose interests cannot be calculated and taken as part of the expenses of the real estate transfer and cannot
be proved by certificates of financial institutions, those expenses for real estate development must be kept within ten percent of
the total cash value calculated according to Subparagaphs 1 and 2 of this article, and are to be calculated and deducted thereof.
The exact ratios to be deducted in the above-stated calculations are to be decided by the governments of the related provinces, autonomous
regions and municipalities directly under the Central Government.
4.
The evaluated prices of old houses and buildings refer to their replacement prices evaluated at the time of transfer by real estate
appraisal organizations established with the approval of the government. Depreciation funds are to be deducted from the replacement
prices with the discount rates decided by the well-preserved state of the houses and buildings that have already been used. The prices
evaluated have to be confirmed by the tax authorities.
5.
Taxes related to the transfer of the real estate refer to the business tax, tax on the maintenance of municipal buildings and stamp
duty delivered during the transfer. The educational surtax paid on the transfer can also be taken as part of the taxes involved and
deducted.
6.
According to Subparagraph 5 of Article 6 of the Regulations, a taxpayer engaged in a real estate development project is allowed a
20% deduction from the total cash value calculated according to Subparagraphs 1 and 2 of this article.
Article 8
The calculation of the value-added tax on a tract of land is to be made by taking the most basic accounting item of the cost accounting
for the real estate, or the object of accounting, as the unit accounting.
Article 9
Whereas a taxpayer who has received the right to use a tract of land, has the land developed plot after plot by stages and has transferred
part of the real estate, the part of the cash value to be deducted from the tax payment can be calculated according to the proportion
of the land-use right to be transferred to the total area of this tract of land, or according to the proportion of the area covered
by buildings, or by other methods confirmed by the tax institution.
Article 10
With regard to the four-level progressive tax rates listed in Article 7 of the Regulations, the percentages of difference between
the added-value of the land and the total cash value of the deducted items at each level are included in the following formulae:
In computing the value-added tax on the land, the following simple method of calculation can be used for quick computation, i.e.:
the added value times a practical tax rate and then minus the cash value of the deducted items multiplied by a coefficient. The concrete
formulae are as follows:
1.
Whereas the amount of the added value of the land does not exceed the cash value of the items to be deducted by 50%
the value-added tax on the land = the added value * 30%;
2.
Whereas the added value of the land exceeds the cash value of the items to be deducted by 50% but by less than 100%
The value-added tax on the land = the added value * 40% the cash value of the items to be deducted * 5%;
3.
Whereas the added value of the land exceeds the cash value of the items to be deducted by 100% but by less than 200%
the value added tax on the land = the added value * 50% – the cash value of the items to be deducted * 15%;
4.
Whereas the added value of the land exceeds the cash value of the items to be deducted by 200% or more
the value-added tax on the land = the added value * 60% – the cash value of the items to be deducted * 35%
The 5%, 15% and 35% in the formulas are the deduction coefficients used for quick calculation.
Article 11
The ordinary standard houses defined in Subparagraph 1 of Article 8 of the regulations refer to residential buildings constructed
according to the standards of local ordinary residential buildings. The residential buildings of ordinary standards do not include
high-class apartment houses, villas and holiday villas. The concrete yardsticks for distinguishing ordinary-standard residential
buildings from other buildings are to be decided by the people’s governments of the related provinces, autonomous regions and municipalities
directly under the Central Government.
A residential building of ordinary standards constructed by a taxpayer for sale, provided that its added value does not exceed the
total cash value of the items to be deducted listed in Subparagraphs 1, 2, 3, 5 and 6 of these rules by 20%, shall be exempted from
the land value-added tax. In case that the added value of the ordinary-class residential building exceeds the total cash value of
the items to be deducted by 20%, the taxpayer is required to pay a tax calculated according to the full added value in line with
the Regulations.
A real estate to be requisitioned or retrieved according to the Law out of the needs of national construction as stipulated in Subparagraph
2 of Article 8 of the Regulations refers to a housing estate or its land-use right requisitioned or retrieved by the government
in line with the requirements for implementing municipal plans and national construction.
The real estate transferred by a taxpayer on his (her) own accord in comply with the needs of implementing municipal plans and national
construction are exempted from the land value-added tax in line with the stipulations.
The organizations and individuals that conform to the stipulated tax- exemption rules are required to submit applications for tax
exemption to the tax institutions in the areas where their real estates are located. They will be exempted from the land value-added
tax after their applications are examined and checked.
Article 12
An individual who transfers the house he (she) owns and inhabits owing to the transfer of his (her) work or the improvement of living
conditions will be exempted from the land-value added tax after his (her) tax-exemption application is examined and checked by the
tax authorities provided that he (she) has lived there for five years or more. If he (she) has lived there for over three years but
less than five years, the land value-added tax will be reduced by half. For an individual who has lived there for less than three
years, the land value-added tax will be calculated and levied according to the stipulations.
Article 13
The evaluated prices of the real estates mentioned in Article 9 of the Regulations refer to the prices evaluated by real estate appraisal
organizations set up with the approval of the government by referring to the same type of real estates in the same locality according
to comprehensive standards. The evaluated prices must be confirmed by local tax institutions.
Article 14
Concealment or falsification in reporting the transaction price of a real estate transfer mentioned in Subparagraph 1 of Article 9
of the Regulations refers to the taxpayer’s conduct of not declaring or intentionally understating the price for the transfer of
the land-use right and the buildings and attached objects on the land.
Untrue reporting of deducted items mentioned in Subparagraph 2 of Article 9 of the Regulations refers to the taxpayer’s false declaration,
without conforming to the real facts, of the cash value of the deducted items at the time of declaration for tax payment.
The case of the transaction price being lower than the evaluated price without justifiable reasons as mentioned in Subparagraph 3
of Article 9 of the Regulations refers to the condition that the real transaction price reported by the taxpayer for the transfer
of the real estate is lower than the transaction price evaluated by the real estate appraisal organization with the taxpayer not
being able to provide proofs or justifiable reasons.
In case of the concealment or falsification of the transaction price of a real estate, the price should be evaluated by the appraisal
organization by referring to the market price for the transaction of the same type of real estates. The tax authorities then determine
the income received for the transfer of the real estate on the basis of the evaluation.
Whereas the cash value of the deducted items declared is false, the appraisal institution should evaluate their cash value by referring
to the base costs of the house given a discount according to the degree of its well-preserved state, and also to the base price of
the land at the time of obtaining the land-use right. The tax institution then determines the cash value of the deducted items according
to the evaluated price.
Whereas the reported transaction price for the transfer of a real estate is lower than the evaluated real estate price and no justifiable
reasons are provided, the tax institution shall determine the income from the real estate transfer on the basis of the evaluated
price.
Article 15
According to Article 10 of the Regulations, a taxpayer is required to pay the tax according to the following procedure:
1.
Within seven days after the signing of the contract on the transfer of a real estate, the taxpayer is required to make a declaration
for tax payment at the tax department in the area where the real estate is located, and hand in certificates of the right of ownership
of the house and building on the land and of the land-use right, contracts on the land transfer and the sale and purchase of the
house, a report on the evaluation of the real estate and other related data on the transfer of the real estate.
Whereas the frequent transfer of real estates makes it difficult for the taxpayer to make a declaration after each transfer, he (she)
is allowed to make a declaration at fixed periods, with the time-limit determined by the tax department.
2.
The taxpayer is required to deliver the value-added tax on the land according to the amount examined and decided by the tax institution
and within the period specified by it.
Article 16
Whereas the taxpayer has obtained an income from the transfer of a real estate before the completion of the construction project on
it and the clearing of accounts, the land value-added tax can be levied in advance since the value of the tax cannot yet be calculated
for involving the determination of the costs or because of other reasons. The settlement of accounts is to be made after the construction
project and the clearing of accounts are completed. The overpaid part of the value-added tax shall be returned to the taxpayer while
the underpaid part shall be returned by him (her). The concrete methods will be worked out by the tax departments of the related
provinces, autonomous regions and municipalities directly under the Central Government according to local conditions.
Article 17
The location of the real estate stated in Article 10 of the Regulations refers to the area where the real estate is located. Whereas
the real estate transferred by the taxpayer is located in two or more than two areas, he (she) is required to make separate tax declaration
in each of the areas.
Article 18
The related data which are required to be supplied by the land management and house property management departments to tax departments
as stipulated in Article 11 of the Regulations refer to the data on the right of ownership of houses and buildings, land-use right,
the cash value of land transfer, the base price of the land, the market transaction price of the real estate and the change of the
right of ownership. The data shall be supplied to the tax department in the area where the real estate is located.
Article 19
The taxpayer who does not submit the certificate of the right of ownership of houses and buildings, the certificate of land-use right,
the contract on land transfer and the sale and purchase of the house property, the report on the evaluation of the real estate and
other data related to the transfer of the real estate, shall be dealt with in accordance with the stipulations of Article 39 of
the Regulations of the People’s Republic of China on Administration of Tax Collection (hereinafter refer to as Administration of
Tax Collection).
The taxpayer who does not declare the transaction price of his (her) real estate and the cash value of the deducted items which result
in tax underpayment or tax evasion, should be dealt with according to stipulations of Article 40 of the Administration for Tax Collection.
Article 20
The Renminbi is used as the basic unit in calculating the land value added tax. When the income received for the transfer of a real
estate is foreign currency, it will be converted into Renminbi according to the exchange quotations published by the government on
the day of payment or on the first day of the month of payment. The amount of Renminbi thus received will be used as the basis for
calculating the land value-added tax to be levied.
Article 21
The methods of collecting the land value added taxes in different areas as stipulated in Article 15 of the Regulations refer to the
methods of collecting the value added taxes and proceeds on the same type of land as laid down in the Regulations.
Article 22
The Ministry of Finance or the State Administration of Taxation is responsible for interpreting these rules.
Article 23
The Rules shall enter into force as of the date of promulgation.
Article 24
The land value-added tax between January 1, 1994 and the day of the publication of the Rules will be calculated and levied with reference
to the stipulations of the Rules.
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