June 30 2021

Land Appreciation Tax Policies for Enterprise Restructuring and Reorganization to Continue into the End of 2023

Announcement by Ministry of Finance and State Taxation Administration (STA)

The Ministry of Finance and the State Taxation Administration released on June 16, 2021 the Announcement about Continuing the Implementation of Relevant Land Appreciation Tax Policies for Enterprise Restructuring and Reorganization, to be effective from January 1, 2021 until December 31, 2023.

The announcement has kept the preferential policies on land appreciation tax under four circumstances, that is, land appreciation tax will not be imposed on the transfer and change of property ownership (state-owned land use right, buildings and the attached installations thereon) when an enterprise is restructured, combined, split or reorganized and land resources were accounted as a means of investment. Besides, the announcement scrapped the expression that a company should provide relevant materials if it decides not to enjoy preferential policies, and instead stated that "relevant issues should be handled according to related tax regulations".