Decision of the Standing Committee of the National People's Congress on Authorizing the State Council to Pilot Real Estate Tax Reform in Certain Regions

(Adopted at the 31st Meeting of the Standing Committee of the Thirteenth National People's Congress on October 23, 2021)

The Standing Committee of the Thirteenth National People's Congress decides at its 31st meeting to authorize the State Council to pilot real estate tax reform in certain regions, to proactively and prudently facilitate the legislation on and reform of real estate tax, to encourage reasonable housing consumption and efficient and intensive use of land resources, and to promote steady and sound development of real estate markets.

1. The real estate tax is levied on all sorts of real estate for residential or nonresidential purposes in the pilot regions, excluding house sites and houses thereon acquired in accordance with the law in rural areas. Taxpayers of the real estate tax are persons with land-use rights and owners of houses. As for the real estate for nonresidential purposes, the Interim Regulations of the People's Republic of China on Real Estate Tax and the Interim Regulations of the People's Republic of China on Urban Land Use Tax shall continue to apply.

2. The State Council shall formulate specific measures for piloting the real estate tax, and the people's governments in the pilot regions shall make specific implementation rules. The State Council and its relevant departments and the people's governments in the pilot regions shall establish reasonable and feasible schemes and procedures for tax levying.

3. The State Council shall determine the pilot regions in a proactive and prudent manner and via comprehensive consideration of the need to deepen the pilot reform of the real estate tax, to formulate a widely applicable law, and to promote the steady and healthy development of real estate markets, and shall report the pilot regions to the Standing Committee of the National People's Congress for record.

The pilot reform authorized by this Decision lasts five years from the date of promulgation of the pilot measures of the State Council in this regard. During the period, the State Council shall draw on experience from piloting the tax reform in a timely manner and report to the Standing Committee of the National People's Congress on the situation about the pilot reform six months before the authorization period expires, and may raise relevant opinions for prolonged authorization for the Standing Committee of the National People's Congress to decide. Law on the tax shall be formulated when conditions are favorable.

This Decision shall go into effect as of the date of promulgation, and the starting time of the pilot reform shall be determined by the State Council.