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Standing Committee of China's National People's Congress Adopts Decision Authorizing Additional Property Tax Pilot Areas — Orbitax Tax News & Alerts

The Standing Committee of the National People's Congress (NPC) adopted on 23 October 2021 a decision authorizing the expansion of property tax in the country. While Chinese President Xi Jinping has called for nationwide implementation of property tax, the Standing Committee decision only authorizes the State Council to implement property tax in additional pilot areas for a five-year period. As per the decision, the property tax is to be levied on all types of residential and non-residential property in pilot areas, although certain rural property will be excluded. Taxpayers of the property tax in pilot areas will include holders of land-use rights and house owners. The effective date and pilot areas will be set by the State Council, with the Ministry of Finance and the State Administration of Taxation to issue the required regulations.