On March 30, the Ministry of Finance and the State Administration of Taxation jointly issued a news report. With the approval of the State Council, China will adjust the business tax policy for individual residential transfer from March 31, 2015. During this period, individuals will resell their purchased general residential buildings and the period of exemption from business tax will be reduced from the current purchase of more than five years (including five years) to more than two years (including two years).
The two parts show that the adjustment of personal residential transfer business tax policy is aimed at promoting the healthy development of the real estate market. According to the two parts of the announcement, the adjustment includes: individuals will purchase houses for sale for less than two years, the full levy of business tax; individuals will purchase more than two years (including two years) of non-ordinary housing for sale, according to their sales income minus the difference after the purchase price of the house levied business tax; individuals will purchase 2. More than 2 years old residential sales are exempt from business tax.
Since the beginning of 2011, the business tax policy of individual residential transfer, which China is now iplementing, has been put into effect. Individuals will levy a full business tax on those who purchase dwellings for sale that are short of five years, and individuals will purchase non-ordinary dwellings for sale that exceed five years (including five years), according to their sales income minus the difference after the purchase price. Business tax shall be levied; if an individual purchases a general residential building for sale for more than five years (including five years), the business tax shall be exempted.