Two ministries: Individuals who purchase residential property for more than 2 years (including 2 years) for external sale are exempt from value-added tax.

On December 30, the Ministry of Finance and the State Administration of Taxation issued a notice regarding the value-added tax policy for individuals selling homes. Individuals (excluding general taxpayers in individual industrial and commercial households, the same below) who sell homes purchased for less than 2 years externally will pay the full amount of value-added tax at a rate of 3%; individuals who sell homes purchased for 2 years or more (including 2 years) externally are exempt from value-added tax. This notice will be implemented from January 1, 2026. Before January 1, 2026, individuals who have not yet declared and paid the value-added tax related to the sale of homes can follow this notice if they meet the requirements in this notice. The original text is as follows: Notice on the Value-added Tax Policy for Individuals Selling Homes Announcement No. 17 of 2025 by the Ministry of Finance and the State Administration of Taxation The value-added tax policy for individuals selling homes is hereby announced as follows: Individuals (excluding general taxpayers in individual industrial and commercial households, the same below) who sell homes purchased for less than 2 years externally will pay the full amount of value-added tax at a rate of 3%; individuals who sell homes purchased for 2 years or more (including 2 years) externally are exempt from value-added tax. This notice will be implemented from January 1, 2026. The provisions of Article 5, Paragraph 1 of the Transition Policy for the Pilot Implementation of Business Tax to Value-added Tax as attached to the "Notice of the Ministry of Finance and the State Administration of Taxation on Fully Implementing the Pilot Implementation of Business Tax to Value-added Tax" (Cai Shui [2016] No. 36) will be simultaneously repealed. Before January 1, 2026, individuals who have not declared and paid the value-added tax related to the sale of homes can follow this notice if they meet the requirements in this notice. This notice is hereby announced. Ministry of Finance, State Administration of Taxation December 29, 2025 This article is selected from the official website of the Ministry of Finance. Editor: Feng Qiuyi.