Oct. 13 – Taxpayers in China who transfer their immovable property or land use rights to others are not liable for business tax (BT) payments, a recent official document says.
The “Announcement on BT Issues Concerning Taxpayers’ Asset Restructuring (SAT Announcement  No.51),” issued by the State Administration of Taxation (SAT) on September 26, clarified that during the process of asset restructuring, a taxpayer’s act of transferring all or part of its physical assets as well as claims, debt and labor force related thereto to any other entity or individual – through means such as combination, division, sale and replacement – shall not be included into the scope of BT collection. The transfer of immovable property and land use rights involved in the aforementioned transferring act shall not be subject to BT payment.
Announcement No.51 took effect on October 1 this year and all the unsettled tax issues prior to the date shall be treated in accordance with the Announcement.
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