Two departments: Continue to implement tax incentives for public rental housing.

On January 16th, the Ministry of Finance and the State Administration of Taxation issued a notice on continuing to implement the tax preferential policies for public rental housing. The notice mentions that the following tax exemptions will be applied: no deed tax or stamp tax will be imposed on housing purchased by public rental housing operating management units as public rental housing; no stamp tax will be levied on the rental agreement signed by both parties in public rental housing leasing. For urban housing security families who receive housing rental subsidies from the local government according to local government regulations, no personal income tax will be levied. Value-added tax will not be levied on rental income from operating public rental housing. Operating management units of public rental housing should separately account for rental income from public rental housing. Failure to do so will result in the loss of the tax exemptions for value-added tax and property tax. The full text is as follows: Notice on Continuing to Implement Tax Preferential Policies for Public Rental Housing Ministry of Finance and State Administration of Taxation Notice No. 4 of 2026 In order to continue to support the construction and operation of public rental housing (hereinafter referred to as public rental housing), the relevant tax preferential policies are hereby announced as follows: 1. During the construction period and after the completion of public rental housing, urban land use tax will be exempted for the land used and occupied by public rental housing. For public rental housing built as part of other housing projects, the urban land use tax related to the construction and management of public rental housing will be exempted according to the proportion of the floor area of public rental housing to the total floor area. 2. Stamp duty related to the construction and management of public rental housing will be exempted for public rental housing operating management units. For public rental housing built as part of other housing projects, the stamp duty related to the construction and management of public rental housing will be exempted according to the proportion of the floor area of public rental housing to the total floor area. 3. No deed tax or stamp duty will be levied on housing purchased by public rental housing operating management units as public rental housing; no stamp duty will be levied on the rental agreement signed by both parties in public rental housing leasing. 4. For enterprises, institutions, social organizations, and other organizations that transfer old houses as a source of public rental housing, and the increase in value does not exceed 20% of the deductible amount, land value-added tax will be exempted. 5. For enterprises, institutions, social organizations, and other organizations that donate housing as public rental housing, if they meet the requirements of tax laws and regulations, the portion of charitable donations within 12% of the annual profit total may be deducted when calculating the taxable income. The portion exceeding 12% of the annual profit total may be deducted within the next three years when calculating the taxable income. For individuals who donate housing as public rental housing, if they meet the requirements of tax laws and regulations, the portion of charitable donations that do not exceed 30% of the declared taxable income may be deducted from the taxable income. 6. Urban housing security families who receive housing rental subsidies from the local government according to local government regulations are exempt from personal income tax. 7. Public rental housing is exempt from property tax. Value-added tax is not levied on rental income from operating public rental housing. Public rental housing operating management units should separately account for rental income from public rental housing. Failure to do so will result in the loss of the tax exemptions for value-added tax and property tax. 8. The public rental housing that enjoys the above-mentioned tax preferential policies refers to public rental housing development plans and annual plans approved by the people's governments of provinces, autonomous regions, municipalities directly under the Central Government, and municipalities directly under the State Council, as well as the Xinjiang Production and Construction Corps, or housing constructed (or raised) approved by the city and county people's governments and managed according to the specific management measures formulated by the people's governments of cities and counties in accordance with the "Guidance on Accelerating the Development of Public Rental Housing" (Jian Bao [2010] No. 87). 9. Taxpayers who enjoy the preferential policies specified in this notice should apply for tax exemption in accordance with the regulations and keep documents such as proof of property ownership, relevant materials containing the original value of the property, materials related to public rental housing and land management, materials related to the construction and management of public rental housing, materials related to purchasing housing as public rental housing, and rental agreements for public rental housing for inspection. 10. This notice shall be effective until December 31, 2027. This notice is hereby issued. Ministry of Finance State Administration of Taxation This article is compiled from the official website of the Ministry of Finance and edited by GMTEight: Liu Jiayin.