Under normal circumstances, the deed tax on real estate is generally a property tax levied on the property owner based on the real estate whose ownership has changed. The real estate deed tax shall be paid to the deed tax collection organ at the tax rate of 3% to 5% on the day when the land and housing ownership transfer contract is signed, or on the day when other certificates with the nature of the land and housing ownership transfer contract are obtained. The applicable tax rate of deed tax shall be determined by the people's government according to the actual situation within the range specified above.
According to the provisions of Article 11 of the Provisional Regulations on Deed Tax in People's Republic of China (PRC), taxpayers shall go through the registration formalities for the change of land and house ownership with deed tax payment vouchers and other documents and materials. If the taxpayer fails to issue the deed tax payment certificate, the land management department and the real estate management department shall not handle the registration formalities for the change of the ownership of the relevant land and houses.