Global Daily Tax News, China Announces Property Sector Tax Reliefs, (Nov 18, 2024)

To prop up the nation's housing market, China is set to introduce tax relief measures for buyers.

In Finance Ministry Announcement No. 16 of 2024, the Chinese Government has announced a one percent reduced rate of deed tax on the purchase by an individual of an only residence for use by their family if the area is 140 square meters or less. A 1.5 percent rate will apply if the size of the residence is larger than 140 square meters.

For purchases of second homes that are owner-occupied, with an area of 140 square meters or less, a one percent rate of deed tax will apply, while a two percent rate will apply for larger purchases.

The announcement further sets out the conditions that must be met for sales of property to be exempt from value-added tax.

The changes will be effective for payments made from December 1, 2024.