China MOF Announces New Tax Policies to Support Real Estate Market

The Chinese Ministry of Finance Nov. 13 issued Announcement No. 16, on new tax policies to support the real estate market. The announcement includes: 1) an increase, to 140 square meters from 90 square meters, for the reduced 1 percent deed tax rate on family homes and second residences; 2) the 0.5 percent reduction for pre-levy land appreciation tax; 3) VAT exemption for residences sold at least two years after their purchase; and 4) deed tax rates of 1.5 percent on residences exceeding 140 square meters and 2 percent on second homes exceeding 140 square meters. The measures apply from ...