China rolls out tax incentives to support struggling housing sector
by ChemOrbis Editorial Team - content@chemorbis.com
According to media sources, China introduced new tax incentives for home and land transactions, aimed at stimulating demand and easing financial strains for developers in its troubled property sector. The finance ministry outlined these measures following recent promises to implement tax policies supporting short-term stability and growth within the real estate market.
Effective December 1, the eligibility for a reduced 1% deed tax will expand to apartments up to 140 square meters, previously limited to 90 square meters, according to the finance ministry. Additionally, the minimum pre-collection rate for the land value-added tax will decrease by 0.5% points. Homeowners across the country, including in major cities like Beijing, Shanghai, Shenzhen, and Guangzhou, will also remain exempt from VAT on properties sold after two years of ownership.
China’s struggling property sector continues to weigh heavily on the nation’s economy. In September, authorities introduced various relief measures, including lowering the minimum down payment to 15% across housing types and relaxing purchase restrictions.
Effective December 1, the eligibility for a reduced 1% deed tax will expand to apartments up to 140 square meters, previously limited to 90 square meters, according to the finance ministry. Additionally, the minimum pre-collection rate for the land value-added tax will decrease by 0.5% points. Homeowners across the country, including in major cities like Beijing, Shanghai, Shenzhen, and Guangzhou, will also remain exempt from VAT on properties sold after two years of ownership.
China’s struggling property sector continues to weigh heavily on the nation’s economy. In September, authorities introduced various relief measures, including lowering the minimum down payment to 15% across housing types and relaxing purchase restrictions.
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