At present,this tax is only applied to enterprises with foreign investment,foreign enterprises and foreigners,and levied on residential property only.Taxpayers are owners,mortgagees,custodians and/or users of such property.

Two different rates are applied to two different bases- a rate of 1.2% is applied to the value of residential property,and a rate of 18% is applied to the rental income from the property.The formula:

Tax payable=tax basesXapplicable rate

Newly constructed buildings are exempt from the tax for three years commencing from the month in which the construction is completed.