China Extends Land Appreciation Tax Exemption for Corporate Restructuring

China's Ministry of Finance and State Administration of Taxation have jointly issued Announcement No. 21 of 2021, which extends the exemption from land appreciation (value-added) tax on immovable property and land-use rights transferred as part of qualifying corporate restructuring to 31 December 2023. The extension is effective from 1 January 2021.

Land appreciation tax is a deductible tax on gains realized from the transfer of immovable property and land-use rights ranging from 30% to 60%…