If the creditor bank obtains the property right assets through bankruptcy procedures, it does not need to bear the deed tax. If it obtains the property right assets through litigation, it needs to bear the deed tax.

Deed tax is a kind of property tax levied on the property owners with the transfer of land and housing ownership within the territory of the People's Republic of China as the taxation object. Simple understanding, that is, the buyer of the transaction needs to pay deed tax. The deed tax shall be taxed at a range of 3%~5%, and the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government may decide according to the actual situation within the above-mentioned provisions.

The preferential deed tax of creditor banks is mainly based on Article 5 of the Notice of the Ministry of Finance and the State Administration of Taxation on Continuing to Support the Reform and Restructuring of Enterprises and Institutions (Cai Shui [2018]17): if an enterprise goes bankrupt in accordance with relevant laws and regulations, the land and house ownership that creditors (including employees of bankrupt enterprises) bear to pay off debts from the bankrupt enterprise shall be exempted from deed tax.