China property: Shenzhen joins Beijing and Shanghai in offering tax breaks to boost sales
Homeowners will not have to pay value-added tax when reselling their property after two years
Shenzhen has become the latest major mainland Chinese city after Beijing and Shanghai to announce tax breaks on large homes to spur sales, echoing the government’s call to stabilise the market with a series of measures to arrest a four-year slump.
Authorities in Shenzhen, China’s technology hub and home to giant companies such as Tencent Holdings and BYD, late on Tuesday said homeowners no longer have to pay value-added tax when reselling their property after more than two years.
The city also raised the threshold for levying deed tax on homes measuring 140 square metres or above, from 90 square metres previously.
Beijing and Shanghai implemented similar steps on Monday. All three cities also announced the abolition of the classification of so-called “ordinary” and “non-ordinary” homes when levying personal income tax on property resale.
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In China, “non-ordinary” homes refers to properties measuring 140 sq m or above, which incurred higher taxes when they were resold. Such measures in the three cities will take effect on December 1.
