Aug. 30 – The State Administration of Taxation issued a tax circular late last month affirming that the transfer of certain infrastructure constructed on a piece of land is subject to land appreciation tax.

Issued in response to a request from the Xiamen municipal tax bureau, Guoshuihan [2010] No. 347 clarifies the treatment of land appreciation tax on the transfer of infrastructure, including pier parking lots and airport runways.

For more information or advice on China’s tax regime, please contact Dezan Shira & Associates at tax@dezshira.com.