China will begin to levy property tax on basements, underground parking lots and other underground buildings this year. Taxes on underground buildings for rent will be the same as on buildings on the ground. But the policies are different for underground buildings for self-use. The basic formula is 70 percent to 90 percent of a building's tax base taxed at 1.2 percent. Tax on underground industrial buildings will be levied on 50 percent to 60 percent of their value. The tax base of underground buildings used for business will be 70 percent to 80 percent of their value. Underground facilities of a building, such as basements, underground parking lots and underground malls, will be regarded as part of the building and the building will be taxed as a whole.
(Source: Shanghai Daily, 2006-01-07) |
