China's Bold Tax Incentives to Revitalize Property Sector

China has introduced tax incentives to rejuvenate its struggling property sector. Starting December 1, 2023, the deed tax eligibility extends to larger apartments, and the land value-added tax pre-collection rate sees a slight reduction, aiming to boost the property market.

China has rolled out new tax incentives to revitalize its ailing property sector. The finance ministry announced that the incentives will be effective from December 1, 2023.

Eligibility for the 1% deed tax will now encompass apartments up to 140 square metres, an increase from the previous cap of 90 square metres.

Additionally, the minimum pre-collection rate for the land value-added tax will be lowered by 0.5 percentage points, as part of the measures to stimulate the property market.

(With inputs from agencies.)