Construction workers pass a housing project under construction on the outskirts of Beijing, China, on Jul 17, 2024. BEIJING: China on Wednesday announced a raft of tax policies aimed at boosting the country's ailing real estate market, state media said, including cuts to property deed taxes and VAT.
China is trying to shore up the sector, and said in October that it would boost credit available for unfinished housing projects to more than US$500 billion. "The announcement specifies that the deed tax incentives for housing transactions will be enhanced to actively support basic and improved housing needs," CCTV reported, adding"the minimum prepayment rate of land value-added tax will be reduced to ease financial difficulties for real estate companies".
That means householders buying their only home or second home will pay a unified 1 per cent deed tax rate, provided the area does not exceed 140sq m. Ahead of Wednesday's policy announcement, China last week unveiled an ambitious plan to relieve public debt, aiming to turn local governments away from belt-tightening practices that have exacerbated the domestic downturn.