Source: CCTV.com

02-06-2007 15:30

While foreign-invested firms may not like it, Chinese businesses are cheering as a new, more even playing field will bring an end to many special privileges enjoyed by overseas companies.

The State Administration of Taxation announced on Monday the land-use or property tax rate will now apply equally to both local and foreign developers. The new tax is retroactive since January 1st, and will triple the old rate set in 1988. The new annual property tax rate in large cities now ranges from 1.5 yuan to 30 yuan per square meter. In medium sized cities, the rate ranges from 1.2 yuan to 24 yuan. And in small cities, the rate varies from 0.9 to 18 yuan.

The first revision of land-use tax regulations since 1988 is aimed at bringing better control and better planning to the development and re-development of land.

Editor:Du Xiaodan