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Notice on Preferential Tax Policies for Public Rental Housing

Document No.:Cai Shui [2015] No. 139

Taxes:Urban Real Estate Tax

Date of Promulgation:2016-01-01

IssueDepartment:Ministry of Finance,State Administration of Taxation

Date of Implementatio:2016-01-01


Issued by: Ministry of Finance State Administration of Taxation

Document No.: Cai Shui [2015] No. 139

Date of Issuance: 2015-12-30

Financial Departments (Bureaus) and Local Taxation Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state budgetary plan, State Bureaus of Tibet, Ningxia and Qinghai Province (Autonomous Regions) and Financial Bureau of Xinjiang  Production and Construction Corps,

In accordance with the Guiding Opinions of the State Council on the Construction and Management of Government-subsidized Housing Projects (Guo Ban Fa [2011] No.45) and the Guiding Opinions on Accelerating the Development of Public Rental Housing (Jian Bao [2010] No. 87), issued by the Ministry of Housing and Urban-rural Development, the Ministry of Finance, State Administration of Taxation and other departments, we have decided to continuously grant tax preference to the construction and operation of public rental housing. The policies concerned are hereby notified as follows:

I. For land used in the construction period of public rental housing and that occupied after the construction of public rental housing, urban and township land use tax shall be exempted. For the supporting public rental housing constructed in other housing projects, based on relevant documents issued by government departments, the urban and township land use tax involved in the construction and management of public rental housing shall be exempted according to the percentage of the public rental housing’s building area to the total building area. 

II. The operating and managing units of public rental housing shall be exempted from the stamp tax involved in the construction and management of public rental housing. For the supporting public rental housing constructed in other housing projects, based on the relevant documents issued by government departments, the stamp tax involved in the construction and management of public rental housing shall be exempted according to the percentage of the public rental housing building area to the total building area.

III. If the operating and managing units of the public rental housing purchase housing as public rental housing, they shall be exempted from deed tax and stamp tax. The leasers and lessees of public rental housing shall be exempted from the stamp tax involved when signing rental contracts. 

IV. If enterprises and public institutions, social groups and other organizations transfer their old houses as the housing resources of public rental housing and their added value do not exceed 20% of the amount of deduction items, their land value appreciation tax shall be exempted.

V. If enterprises and public institutions, social groups and other organizations donate their housing as pubic rental housing, which conforms to the tax law and regulations,  they are allowed to deduct the part of their public welfare donation expenditure amounting 12% of their total annual profits when they calculate their taxable income.

If individuals donate their housing as public rental housing, which conforms to the tax law and regulations, they are allowed to deduct from their taxable income the part of their public welfare donation expenditure in an amount not exceeding 30% of their declared taxable income.

VI. For the low-income families entitled to government support housings, if they meet the requirements as prescribed by the local governments and receive housing rental subsidies from the local governments, the individual income tax shall be exempted.

VII. The building tax on public rental housing shall be exempted. The business tax on the rental income derived from the operation of public rental housing shall be exempted. The operating and managing units of public rental housing shall separately calculate their rental income derived from public rental housing. Otherwise, they shall not enjoy the preferential tax polices of exempting business tax and building tax.

VIII. The public rental housing, which enjoys the above-mentioned preferential tax policies, refers to the following conditions: it is incorporated into the development scheme and annual planning of public rental housing, approved by the people’s governments of provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state budgetary plan and the Xinjiang Production and Construction Corps, and is managed in accordance with the Guiding Opinions on Accelerating the Development of Public Rental Housing (Jian Bao [2010] No. 87) and its specific management measures formulated by the city and county governments.

IX. The notice shall be executed from January 1st, 2016 to December 31st, 2018.



Ministry of Finance State Administration of Taxation

December 30th, 2015


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