Ministry of Finance
The State of Administrative of Taxation
This Notice Effective from 02 March 2006
Cai Sui [2006] No. 21

According to the "Provisional Ordinance for Land Value Added Tax of PRC" and its administrative instruction, the rules are:

1 Property transfer
Whenever taxpayer can provide the tax payment receipt for deed tax, the tax paid could be deducted under the category of "tax related to property transfer".

2 Withholding and settlement of LVAT
After the project complete, settle the payment according to the withholding tax rate agreed. For the construction project which has been completed, tax bureau could request the taxpayer to pay the LVAT for the real estate that has been transferred if the proportion of saleable floor area is 85% or more to the construction area.

財政部
國家稅務總局
本文自2006年3月2日起執行
財稅[2006]21號

根據《中華人民共和國土地增值稅暫行條例》及其實施細則和有關規定精神，規定主要有下：

一、關於轉讓舊房准予扣除專案的計算問題
對納稅人購房時繳納的契稅，凡能提供契稅完稅憑證的，准予作?"與轉讓房地?有關的稅金"予以扣除，但不作?加計5％的基數。

二、關於土地增值稅的預征和清算問題
確定預征率，工程項目竣工結算後，及時進行清算，多退少補。對已竣工驗收的房地產專案，凡轉讓的房地?的建築面積占整個專案可售建築面積的比例在85％以上的，稅務機關可以要求納稅人對已轉讓的房地?進行土地增值稅的清算。