Property sellers in the city are able to enjoy lower tax rates on second-hand housing transactions, as taxpayers’ value-added tax (VAT) and stamp duty have been reduced by half according to a new policy, the Shenzhen Evening News reported yesterday.
On Jan. 25, the provincial finance department and the provincial taxation administration issued a notice on the implementation of a tax reduction and exemption policy for small and micro enterprises in Guangdong Province.
According to the policy, resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax, land occupation tax and education surcharges on VAT small-scale taxpayers were reduced by 50 percent.
The tax collection system of Shenzhen’s taxation authority was revised Jan. 30, and eligible taxpayers have already been able to enjoy the tax reduction, according to the authority.
As the preferential tax reduction policy is an inclusive preferential policy rolled out by the State Council, it is aimed at small-scale taxpayers, including not only individually owned businesses, but also ordinary citizens, the authority added.
According to the Shenzhen Real Estate Registration Center, from Jan. 1 to Feb. 15, the center had accepted 1,528 applications for the tax reduction. Among them, 392 applications have been completed, 1,131 are being processed and another five applications have been rejected for not meeting the conditions.
Industry insiders said that the policy is a tax reduction for enterprises in the province to further support small and micro businesses and alleviate their financial burdens. It is part of the national tax reduction policy and is not a real estate regulation policy.