Key practical points:
• The taxpayer is the party transferring land-use rights or a building for value (seller/developer).
• The tax base is the 'appreciation' = transfer price minus deductible costs.
• Deductible costs include the land price, development and construction costs, interest and related taxes.
• Rates are progressive in four brackets from 30% to 60% by ratio of gain to cost.
• Some transfers of ordinary residences by individuals may be exempt under conditions.
💰 Tax
Provisional Regulations on Land Appreciation Tax · Yalla China
中华人民共和国土地增值税暂行条例 / Provisional Regulations on Land Appreciation Tax
Enacted: 1993-12-13 ✅ Effective: 1994-01-01
📝 Overview
A tax on the gain realised from transferring land-use rights and buildings in China, that is, on the increase in value above cost. It applies at progressive rates of 30% to 60% depending on the ratio of the gain.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
If you develop or sell property at a large profit in China, land appreciation tax can take a big share of the gain, especially in the top brackets. Factor it into your financial model before the deal. General orientation, not legal advice.
📎 Official source
gov.cn
🕒 Updated: 16 March 2026