China may relax second-hand home sales tax by year-end

China may relax second-hand home sales tax by year-end

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ATAHK reads from China Daily that Chinese authorities will likely loosen existing sales tax on second-hand homes before the year's end, China Times reported on Wednesday, citing an insider familiar with the matter.

According to the insider, the State Administration of Taxation is expected to release a general policy guideline on the second-hand housing sales tax, and the local governments would decide the details before the end of this year.While the housing market saw moderate growth in October, the numbers from the second-hand market don't bode well, said a member of real estate agency Home Link's top brass.He also told China Times that considering the national conditions, there is huge adjustment room of the sales tax exempt period.

To buoy the transactions of local real estate, some local governments in third or fourth-tier cities have had adjusted the sales tax policy on second-hand housing, said Chen Jianbo, an industry analyst.In the first half of November, the amount of online registration of second-hand houses in Beijing were 4,662 units, 31.5 percent lower than the amount in the second half of October, the market research center of a housing brokerage 5i5j.com posted on Nov 16.The second-hand housing sales tax was levied on the resale of houses purchased within five years. The current policy has been in place since early 2011.

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