Three Authorities Optimize and Adjust Real Estate Tax Policies, Reducing Deed Tax and Land Appreciation Tax Rates

Recently, the Ministry of Finance (MOF) and two other authorities have jointly issued the Announcement on Tax Policies for Promoting the Stable and Healthy Development of the Real Estate Market, while the State Taxation Administration (STA) released the Announcement on Lowering Minimum Prepayment Rates for Land Appreciation Tax (collectively the "Announcements"), both policies will take effect on December 1, 2024.

According to the Announcements, for the deed tax, the current preferential low tax rate of 1% will apply to properties with an area of up to 140 square meters, up from the previous threshold of 90 square meters. Additionally, Beijing, Shanghai, Guangzhou, and Shenzhen will be allowed to apply the same deed tax preferential policy for second homes as other regions. After the adjustment, individuals purchasing their first or second home with an area not exceeding 140 square meters will pay the deed tax at a uniform rate of 1%, nationwide. Regarding the land appreciation tax, the minimum prepayment rates for land appreciation tax will be uniformly reduced by 0.5 percentage points across all regions, with local authorities permitted to adjust the actual prepayment rate based on local conditions.



(Source: http://szs.mof.gov.cn/zhengcefabu/202411/t20241113_3947450.htm

https://fgk.chinatax.gov.cn/zcfgk/c100012/c5235810/content.html)

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