(1) According to the Provisional Regulations on Deed Tax in People's Republic of China (PRC), which came into effect in September, 20021,the deed tax in China is determined by the provinces within the range of 3%-5%. At present, although the deed tax rate in most areas is above 3%, the current preferential deed tax rate is still effective, and the actual tax rate of buyers who buy the first two houses does not exceed 2%.

(2) According to the regulations, if an individual purchases an ordinary house, and the house is the only house in the family, and the house area is less than 90 square meters (including 90 square meters), the deed tax on the house purchase shall be executed according to 1% of the total house purchase price. And the apartment area is between 90- 144 square meters.

Including 144 flat, the deed tax shall be 2% of the total purchase price. If the area is more than 144 square meters, the house purchase deed tax shall be levied at 3% of the total house price. For non-ordinary houses, second suites and commercial investment properties (including shops, office buildings and commercial apartments), deed tax is levied according to the provisions of each province, generally 3% or 4%.

Calculation of property maintenance fund

According to the latest management regulations, buyers are required to pay the maintenance fund according to the standard of 2.5% of the cost per square meter of multi-storey houses and 3% of the cost per square meter of high-rise houses, and buyers who buy commercial houses and non-residential houses are required to pay 5% to 8% of the cost per square meter of houses.

Therefore, because the property maintenance fund is calculated according to the housing cost price, and the deed tax is calculated according to the purchase price, the deed tax will be relatively more expensive than the property maintenance fund.