Basis: Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Tax Policies for Urban House Demolition: Caishui [2005] No.45.

First, the compensation for demolition that has been included in accordance with the standards set by the state on the management of urban housing demolition is exempt from personal income tax.

Two, the residents were taken to buy houses because of the demolition, the purchase transaction price is equivalent to the demolition compensation part of the deed tax exemption, the transaction price exceeds the demolition compensation part, the excess part of the deed tax collection.