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Notice of the Ministry of Finance and the State Administration of Taxation on Relevant Deed Tax Policies Concerning Further Supporting the Reorganization and Restructuring of Enterprises and Public Institutions

Document No.:

Taxes:Deed Tax

Date of Promulgation:2015-01-01

IssueDepartment:Ministry of Finance,State Administration of Taxation

Date of Implementatio:2015-03-31


Finance offices (bureaus), local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state budgetary plan, state taxation bureaus of Tibet and Ningxia Autonomous Regions, and Qinghai Province, and the Finance Bureau of Xinjiang Production and Construction Corps:


For the purpose of implementing the “Opinions of the State Council on Further Optimizing the Market Environment for the Merger and Restructuring of Enterprises” (Guo Fa [2014] No.14), and continuing to support the restructuring and reorganization of enterprises and public institutions, the deed tax policies concerning the restructuring and reorganization of enterprises and public institutions are hereby notified as follows:


I. Restructuring of enterprises

For an enterprise which makes an overall restructuring according to the “Company Law of the People's Republic of China”, including the restructuring from an unincorporated enterprise to a limited liability company or a joint stock company, the change from a limited liability company to a company limited by shares, and the change from a company limited by shares to a limited liability company, if the original investment entity continuously exists and the ratio of its equities (shares) in the restructured (changed) company exceeds 75%, and if the company after restructuring (change) has inherited the original business rights and obligations, its property (land and housing) ownership succeeded from the original enterprise shall be exempted from the deed tax.


II. Restructuring of public institutions

As for a public institution which is restructured to an enterprise in accordance with relevant provisions of the state, if the original investment entity continuously exists and the ratio of its equities (shares) in the restructured enterprise exceeds 50%, its property (land and housing) ownership succeeded from the original public institution shall be exempt from the deed tax.


III. Merger of company

For two or more companies which have been merged into one company in accordance with the law and the contract agreement, if the original investment entities continuously exist, the property (land and housing) ownership succeeded by the merged company from the original companies shall be exempted from the deed tax.


IV. Division of company

For a company which has been divided into two or more companies with the same investment entity of the original company, the property (land and housing) ownership succeeded by the new/surviving companies after the division from the original company shall be exempted from the deed tax.


V. Enterprise bankruptcy

If an enterprise goes bankrupt in accordance with relevant laws and regulations, the property (land and housing) ownership inherited by the creditors (including the employees of the bankrupt enterprise) for compensating the debt shall be exempted from the deed tax; for non-creditors who inherited the property (land and housing) ownership shall also be exempted from the deed tax provided they have properly arranged all workers of the original enterprise according to the "Labor Law of the People's Republic of China" and other relevant state laws, regulations and policies, and have signed labor and employment contracts with a service term of not less than three years with all of them; if the non-creditors have signed labor and employment contracts with a service term of not less than three years with more than 30% of the workers of the original enterprise, the deed tax shall be reduced by half.


VI. Transfer of assets

For units which undertake the administrative adjustment of governments and take the compulsory transfer of property (land and housing) ownership under the instruction of the people's governments or the state-owned assets management departments above the county level according to regulations, the deed tax shall be exempted.


The transfer of property (land and housing) ownership between enterprises in the same investment entity (including the transfer between the parent company and its wholly owned subsidiaries, the transfer between wholly owned subsidiaries of the same company), and the transfer of property (land and housing) ownership between the same natural person and his/her established individual proprietorship enterprise or one-person limited corporation shall be exempted from the deed tax.


VII. Debt-for-equity swap

For an enterprise approved by the State Council for the implementation of debt-for-equity swap, the property (land and housing) ownership inherited by the newly-established company after debt-for-equity swap shall be exempted from the deed tax.


VIII. Leasing of gratis land or capital contributions using gratis land

Those who inherited gratis lands from the original restructuring enterprise or public institution in the way of leasing or national capital contributions (shares) do not belong to the scope of tax exemption under the aforementioned provisions, and the recipient party shall be subject to deed tax according to the regulations.


IX. Transfer of equities (shares) of the company

In a transfer of equities (shares), if the company’s equities (shares) are inherited by units or individuals without the property (land and housing) ownership transferred, the deed tax shall be exempted.


X. Meaning of relevant terms

Enterprises and companies as mentioned in this Notice refer to the enterprises and companies which are set up and registered within the territory of China in accordance with relevant laws and regulations.


Existence of the investment entity as mentioned in this Notice means the investor of the original enterprise or public institution must exist in the enterprise after restructuring/reorganization. Its proportion of capital contribution, however, can be changed; the same investment entity means the investor is not changed before and after the division ye the proportion of capital contribution can be changed.


The present Notice shall be implemented from January 1, 2015 to December 31, 2017. Before the publication of this notice, if there is still deed tax involved in the restructuring and reorganization of enterprises and public units have not been dealt with and if they accord with the provisions of this Notice, the Notice shall prevail.


Ministry of Finance

State Administration of Taxation

March 31, 2015



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