Ministry of Finance, State Administration of Taxation and Ministry of Housing and Urban-rural Development, Circular on Revising the Preferential Policies for Deed Tax and Individual Income Tax Relating to Real Property Transactions

Issued: September 29 2010
Effective: October 1 2010

Main contents: Where an individual purchases ordinary residential premises, and such premises is the only premises of his/her family (whose members include the purchaser and his/her spouse and minor children), deed tax shall be reduced by 50%. Where he purchases ordinary residential premises of 90 square metres or less, deed tax shall be levied at a reduced rate of 1% (Article 1). Taxpayers that sell their own residential premises and purchase another unit of premises within one year shall no longer be entitled to exemption or reduction of individual income tax (Article 2).

Repealed legislation: Provisions on deed tax of Article 1 of the Circular on Revising Several Tax Policies on the Real Property Market, Jul 29 1999; Article 1 of the Circular on Revising the Tax Policies Relating to Real Property Transactions, Oct 22 2008; and Article 3 of the Circular on Issues Relevant to the Levy of Individual Income Tax on Income Derived from Sale of Residential Premises by Individuals, Dec 2 1999