The taxpayers of Land Appreciation Tax include units and individuals who receive income from a disposal or other means of transfer with consideration of State-owned land use rights, buildings on land and their attached facilities (hereinafter referred to as transfer of real estate).

1)  Transfer of state-owned land use rights, including sale, exchange and donation;
2)  Transfer of the buildings and other constructions together with the transfer of the state-owned land use right;
3)  Sales of existing real estate.

The Land Appreciation Tax adopts four levels of progressive rates.

Level	Tax base	Tax rates	Quick Deduction Rate
1	That part of the appreciation amount not exceeding 50% of the sum of deductible items	30%	0
2	That part of the appreciation amount exceeding 50%, but not exceeding 100%, of the sum of deductible items	40%	5%
3	That part of the appreciation amount exceeding 100%, but not exceeding 200%, of the sum of deductible items	50%	15%
4	That part of the appreciation amount exceeding 200% of the sum of deductible items	60%	35%

Steps to calculate the amount of Land Appreciation Tax payable,

(1) Calculate the sum of relevant deductible items;
(2) Calculate the appreciation amount;
(3) Calculate the appreciation rate;
(4) Calculate the tax amount: by applying the applicable tax rates in line with the percentages of the appreciation amount over the sum of the deductible items.

The deductible items are as follows based on the nature of items transferred.

Items transferred	可扣除项目
New established real estate（5 deductible items）	1. The amount paid for obtaining the land use right 2. Real estate development costs 3. Real estate development expenses 4. Taxes related to the transfer of real estate; 5. Other deductions stipulated by the Ministry of Finance
Existing real estate (3 deductible items)	1. Revaluated price of premises and buildings Revaluated price = replacement cost price × rate of discount; 2. The amount paid for obtaining the land use right and related fees paid according to the unified provisions of the state 3. Taxes paid in the transfer process

（1)  The Land Appreciation Tax shall be exempt in situations where the appreciation amount on the sale of ordinary standard residential buildings construction by taxpayers for sale does not exceed 20% of the sum of deductible items and when the real estate is taken over or repossessed in accordance to the laws due to the construction requirements of the State.
（2）For enterprises, institutions, social organizations and other organizations that transfer former houses as public rental housing sources, and the appreciation amount does not exceed 20% of the amount deductable items, the land appreciation tax shall be exempted.
（3）The real estate requisitioned and recovered according to law for national construction needs shall be exempted from land appreciation tax.
（4）If the taxpayer transfers the original real estate due to urban planning and national construction, the land appreciation tax shall be exempted.