According to the requirement of State Administration of Taxation, effective from Feb 01, 2007, it is fully enforcing a clearance of Land Value-Added Tax against property companies which fulfill any one of the following situations:

1. if property developments have been completed and sold;
2. if land-use rights have been transferred to other parties;
3. if a project has not been sold out three years after a sales license is granted.

According to the instruction, property developers should pay the Land Value-Added Tax at around 30%-60%, based on the balance of income deducted from project costs. The higher the profit margin is, the higher the Land Value-Added Tax is levied. For projects generated profits doubling from costs, it should be charged a 60% Land Value-Added Tax.

根據國家稅務總局要求, 從2007年2月1日起，對滿足以下條件之一的房地產企業進行土地增值稅清算

1. 房地產開發專案全部竣工,完成銷售
2. 直接轉讓土地使用權的企業
3. 取得銷售（預售）許可證滿三年仍未銷售完畢的

根據通知要求，房地產企業將根據房地產專案取得的利潤占開發成本的比重繳納30%到60%的土地增值稅，利潤越高，繳納的土地增值稅也越高，其中利潤占成本兩倍以上的房地產專案，將繳納60%的土地增值稅