The Ministry of Finance， the State Administration of Taxation and the Ministry of Housing and Urban-Rural Development Jointly Released a Notice concerning Preferential Policy Adjustment of the Deed Tax and Business Tax on the Transfer of Real Properties

To reduce the house purchase cost for customers and stimulate the healthy development of real property market， the Ministry of Finance，the State Administration of Taxation and the Ministry of Housing and Urban-Rural Development jointly released a Notice concerning Preferential Policy Adjustment of the Deed Tax and Business Tax on the Transfer of Real Properties （Cai Shui ［2016］ No. 23， hereinafter referred to as ‘the Notice’） on February 17th， 2016， which makes adjustments on preferential policy concerning the deed tax and business tax on the transfer of real properties by individuals and applies fromFebruary 22nd， 2016. There are two highlights in this policy adjustment. The first highlight： the preferential policy is extended to the second residential property purchased by individuals for housing improvements， in which the rate of deed tax is reduced to 1% if the size is less than 90 m2and the tax rate for the second residential property is reduced to 2% if the size is more than 90 m2. The second highlight： the restrictions on house size and residence type are lifted. The residential property meeting the deed tax preference under the previous policy had to be the only property owned by a family but also the ordinary one， namely， less than 144 m2， but the first and second residential property purchased by families in the new policy are not necessarily subject to ordinary property， and the only threshold for enjoying the reduced tax rate is 90 m2. As for business tax policy applicable to the house sold by individuals， the Notice prescribes that the sale of a residential property by an individual that has been owned by that individual for more than 2 years shall be exempt from the business tax， and the residential property of all types shall be subject to the same preferential policy， and tax exemption and tax imposition on the difference of purchase and sale prices of the ordinary and non-ordinary residential property shall not apply any longer. The main contents of the Notice are as follows：

一、关于契税政策I. Policy of deed tax

（一）对个人购买家庭唯一住房（家庭成员范围包括购房人、配偶以及未成年子女，下同），面积为90平方米及以下的，减按1%的税率征收契税；面积为90平方米以上的，减按1.5%的税率征收契税。

A. Deed tax is charged to the acquisition of a residential property by an individual at a rate of 1% if the property is the only one owned by the individual family （family members including house buyer， spouse and minor children， similarly hereinafter） and the size of the property is less than 90 m2， and a rate of 1.5% will apply if the size of the property exceeds 90 m2.

（二）对个人购买家庭第二套改善性住房，面积为90平方米及以下的，减按1%的税率征收契税；面积为90平方米以上的，减按2%的税率征收契税。

家庭第二套改善性住房是指已拥有一套住房的家庭，购买的家庭第二套住房。

B. In the case of the second residential property that an individual acquires for improvement purpose， the tax rate of deed tax is reduced to 1% if the size of the second residential property is less than 90 m2. The tax rate for the second residential property is reduced to 2% if the size of the property exceeds 90 m2.

Second residential property acquired for improvement purpose refers to the second residential property acquired by a family which has already owned a residential property.

（三）纳税人申请享受税收优惠的，根据纳税人的申请或授权，由购房所在地的房地产主管部门出具纳税人家庭住房情况书面查询结果，并将查询结果和相关住房信息及时传递给税务机关。暂不具备查询条件而不能提供家庭住房查询结果的，纳税人应向税务机关提交家庭住房实有套数书面诚信保证，诚信保证不实的，属于虚假纳税申报，按照《中华人民共和国税收征收管理法》的有关规定处理，并将不诚信记录纳入个人征信系统。

按照便民、高效原则，房地产主管部门应按规定及时出具纳税人家庭住房情况书面查询结果，税务机关应对纳税人提出的税收优惠申请限时办结。

C. To be eligible for the tax preference， the taxpayer must present a verification report of residential property status issued by the competent property registration department to the tax authority timely. If the verification report cannot be provided due to the limited inquiry condition， a written promise note stating that the number of the residential properties reported is true shall be submitted to the tax authority. If the promise note is falsified which falls into the fraud tax declaration， the Tax Collection and Administration Law of the People’s Republic of China shall apply and dishonest record shall be included into the individual credit reporting system.

In accordance with the principles of convenience and efficiency， the competent authority of real property shall issue the verification report of residential property status to the taxpayer timely and the tax authority shall deal with the tax preference application within the time limit.

（四）具体操作办法由各省、自治区、直辖市财政、税务、房地产主管部门共同制定。

D. Implementation measures shall be jointly formulated by the competent authorities of finance， taxation and real property at the levels of province， autonomous region and municipality directly under the Central Government.

二、关于营业税政策II. Policy of business tax

个人将购买不足2年的住房对外销售的，全额征收营业税；个人将购买2年以上（含2年）的住房对外销售的，免征营业税。

办理免税的具体程序、购买房屋的时……