China Reducing Real Estate Taxes

BEIJING, August 10 (Xinhua) -- China's real estate taxes were cut by a big margin as of August 1, 1999, the Ministry of Finance and State Tax Administration report.

The tax cut focuses on sales tax, taxes on deeds, and incremental tax on land, according to China Securities.
Individual housing purchases are exempt from sales tax on the secondary market on the condition that the buyer lives in the unit for more than a year.

Taxes on housing deeds held by individuals have been cut by half and housing sold by individuals is exempt from incremental duties at present.

At the same time, the sale of empty housing is both sales and deed tax exempt until the end of the year 2000, provided that the building was built before June 30, 1998.

The Ministry of Finance and the State Tax Administration have also ordered changes in various regulations of local governments to bring them in accord with the new guidelines.