Issued by: Shanghai Municipal Finance Bureau, State Taxation Administration Shanghai Tax Bureau
Issue No.: Hucaifa [2024] No. 10
Release Date: December 20, 2024
Effective Date: January 1, 2024
Links: http://shanghai.chinatax.gov.cn/zcfw/zcfgk/dcs/202412/t474651.html

According to the Interim Regulations on the Property Tax of the People's Republic of China, if taxpayers genuinely face financial difficulties in paying taxes, the people's governments of provinces, autonomous regions, and municipalities can determine to periodically reduce or exempt property tax. Based on this, Shanghai Municipal Finance Bureau and the Tax Bureau have issued this announcement (“the Announcement”), specifying the regulations for property tax relief for taxpayers in financial difficulty. The following key points should be noted:
1. The applicable subjects are corporate taxpayers paying property tax in Shanghai, excluding individual taxpayers；

2. The Announcement specifies six scenarios under which taxpayers can apply for a reduction or exemption of property tax, such as: entering bankruptcy proceedings with idle properties; suffering significant losses due to natural disasters or other force majeure factors; and engaging in encouraged industries listed in the National “Catalogue for Guiding Industrial Restructuring” while incurring losses. However, the Announcement does not specify the amount or proportion of property tax that can be reduced；

3. The Announcement has taken effect since January 1, 2024. If taxpayers encountered the situations listed in the Announcement in 2024 and meet the criteria, they can apply for a refund of the property tax already paid for that year.