国税发[1999]242号
颁布日期：19991221 　实施日期：20000101 　颁布单位：国家税务总局

　　GuoShuiFa [1999] No.242

　　December 21, 1999

　　The state and local taxation¹ bureaus of each province, autonomous² region, municipalities directly under the Central Government and the municipalities separately listed on the State plan:

　　In order to regulate the administration of taxation, some issues concerning the taxation of enterprises with foreign investment in the field of real estate is notified as follows:

　　1. Business and income tax should be counted on the basis of the price paid by the foreign buyer to the foreign enterprise, if an enterprise with foreign investment sells real estate located in China through the agency of an enterprise abroad by means of signing agreement or contracts on the basis of commission or exclusive selling rights.

　　2. Full and valid³ documents should be offered for labor⁴ charges paid by the above-mentioned enterprise with foreign investment such as commissions, price difference, handling charge and deductions⁵, and the approval of the competent taxation authority is needed before they are counted as expenses. And these expenses should not exceed 10% of the sales of the real estate.

　　This circular shall enter into force as of January 1, 2000.