BEIJING, Jan. 16 (Xinhua) -- China will extend preferential tax policies for public rental housing until the end of 2027 to further support the construction and operation of affordable housing, Chinese taxation authorities announced Friday.
The land used by public rental housing will continue to be exempt from urban land use tax both during and after construction, according to a statement jointly issued by the Ministry of Finance and the State Taxation Administration.
Operators of public rental housing will face no stamp duty on construction and management, nor will they be subject to deed tax and stamp duty when purchasing housing for this purpose, according to the statement.
The policy reduces the tax burden on tenants by waiving individual income tax on housing rental subsidies received by eligible urban households from local governments.
No property tax will be levied on public rental housing, and rental income derived from such sources will be free from value-added tax, said the statement. ■
