City Introduces Plan for Implementation of New Tax on Pre-Owned Home Sales
Shenzhen recently released a plan for the local implementation of a new national tax law that will levy a 20 percent tax on profits coming from sales of pre-owned homes. In addition the Guangdong Province Government used a regulation that will toughen restrictions on home prices and have already asked Shenzhen, Guangzhou, Foshan and Zhuhai to follow strictly the national limitations that was intended to control the ever increasing prices of homes.
Guangzhou and Shenzhen are two cities were home prices increases are required to release plans for of their objectives that will curb prices of newly built homes. A market research director a a local real estate company said that the housing market in Shenzhen will likely be affected by the new policy and that provincial regulations have not elaborate on how the tax will be implemented. Since 2010, Shenzhen have been following the State home purchase restrictions and more work is needed to determine on how a home income tax should be implemented locally since a multitude of factors such as renovation costs and the building’s age is involved.
Housing officials are saying that the regulations will also increase supplies of small and medium sized houses and will also promote efforts in building more affordable homes. By this year the regulation will target around 116,000 affordable homes to be completed and around 78,000 more will be built by October.