Recently, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban-Rural Development issued the "Announcement on Tax Policies to Promote the Stable and Healthy Development of the Real Estate Market" (hereinafter referred to as the "Anno

Recently, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban-Rural Development issued the "Announcement on Tax Policies to Promote the Stable and Healthy Development of the Real Estate Market" (hereinafter referred to as the "Announcement"), which clarified the requirements for the cancellation of ordinary housing and non-ordinary housing standards. Value-added tax and other preferential policies. In order to implement the national work deployment and better meet residents' rigid and improved housing needs, with the consent of the Shanghai Municipal Government, the Shanghai Municipal Housing and Urban-Rural Development Management Committee, the Municipal Housing Administration, the Municipal Finance Bureau, and the Municipal Taxation Bureau jointly issued the " The Notice on Matters Concerning the Cancellation of Ordinary Housing Standards (hereinafter referred to as the "Notice"), firstly, clearly cancels the standards for ordinary housing and non-ordinary housing; secondly, it clarifies the relevant personal housing transaction tax matters after the cancellation of the standards. The "Notice" will come into effect on December 1, 2024.

1. Regarding personal income tax on personal transfer of housing

The "Notice" clearly states that for personal transfer of housing, complete and accurate certificates of the original value of the house are not provided and cannot be calculated correctly. As for the original value of the house and the amount of tax payable, the individual income tax shall be assessed and levied in accordance with the provisions of Article 3 of the "Notice of the State Administration of Taxation on Issues Concerning the Collection of Personal Income Tax on Income from the Transfer of Personal Housing" (Guo Shui Fa [2006] No. 108). 1% of the income is assessed as the amount of personal income tax payable.

According to the above regulations, Shanghai has canceled the requirement that individuals transfer non-ordinary housing to determine the amount of personal income tax payable at 2% of the transfer income. Other personal income tax policies have not been adjusted. For example, income derived from the transfer of a house for personal use for more than 5 years and is the only living room of the family is exempt from personal income tax; the personal income tax policy for residents to exchange for housing will continue to be implemented in accordance with relevant national documents.

2. Regarding the value-added tax on the sale of housing by individuals

According to the "Announcement", individuals who purchase housing for more than 2 years (including 2 years) and sell it to external parties are exempt from value-added tax. If an individual sells a house purchased less than 2 years ago, the full value-added tax shall be paid at a levy rate of 5%.

3. Regarding the deed tax for individual housing purchases

According to the provisions of the "Announcement", Shanghai applies the same preferential policy for individual housing purchase deed taxes as nationwide. For individuals who purchase the only home for their family (family members include the home buyer, spouse and minor children, the same below) with an area of ​​140 square meters or less, the deed tax will be levied at a reduced rate of 1%; if the area is more than 140 square meters, the deed tax will be levied at a reduced rate of 1%. The deed tax is levied at a reduced rate of 1.5%. If an individual purchases a second home for a family with an area of ​​140 square meters or less, the deed tax will be levied at a reduced rate of 1%; if the area is more than 140 square meters, the deed tax will be levied at a reduced rate of 2%.

4. About the implementation time

will be implemented in accordance with the implementation time specified in the "Announcement". The "Notice" stipulates that it will be implemented from December 1, 2024. Before December 1, 2024, if the personal income tax, value-added tax and deed tax involved in the personal sale or purchase of housing have not been declared and paid, the applicable implementation provisions of the "Announcement" and "Notice" shall be complied with.

Editor: Wang Shanshan

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