Hainan Province Cancels Residential Property Standards

Strategic Insights -

The Hainan Provincial People's Government issued a notice on August 15, cancelling the standards for ordinary residential and non-ordinary residential properties in the province. The decision aims to simplify the regulatory policies and align with national and provincial policies, including the implementation of land value-added tax and housing transaction stamp duty. Taxpayers who sell their homes and purchase a new one within a year will receive a refund of individual income tax paid, while the province will continue to acquire existing commercial housing for use as affordable housing. The acquisition area standards may be relaxed for cities and counties with a high sales cycle of commercial housing.

Key Takeaways:

  • The Hainan Provincial People's Government has cancelled the standards for ordinary residential and non-ordinary residential properties in the province.
  • The cancellation aims to simplify regulatory policies and align with national and provincial policies.
  • Taxpayers who sell their homes and purchase a new one within a year will receive a refund of individual income tax paid.
  • The province will continue to acquire existing commercial housing for use as affordable housing.
  • The acquisition area standards may be relaxed for cities and counties with a high sales cycle of commercial housing.
  • Taxpayers who build ordinary standard residential properties for sale will remain exempt from land value-added tax if the value-added amount does not exceed 20% of the deduction items.
  • Banking financial institutions will implement housing credit policies based on unit inquiry results or certification issued by relevant departments.

Statistics:

  • 20%: The maximum value-added amount for ordinary standard residential properties that will remain exempt from land value-added tax.
  • 1 year: The timeframe within which taxpayers who sell their homes and purchase a new one will receive a refund of individual income tax paid.
  • 1 unit: The number of units that will be reduced for a multi-child family applying for a commercial loan to purchase commercial housing if a family member already owns a home in the same city or county.

Sources:

  • "Notice on Further Optimizing and Adjusting Relevant Regulatory Policies" (Hainan Provincial Department of Housing and Urban-Rural Development)
  • "Provisional Regulations on Land Value-Added Tax of the People's Republic of China" (Article 8, Item 1)
  • "Notice of the People's Government of Hainan Province on Clarifying the Identification Standards for Ordinary Residential Properties" (Qiong Fu [2019] No. 40)