Hainan: Abolishes Standards for Ordinary and Non-Ordinary Residential Properties

On August 15, the Department of Housing and Urban-Rural Development of Hainan Province and other relevant authorities issued a notice on further optimizing and adjusting regulatory policies, which proposed the abolition of the standards for ordinary and non-ordinary residential properties in the province.

At the same time, in accordance with Article 8, Clause 1 of the Interim Regulations of the People's Republic of China on Land Value-Added Tax, if a taxpayer constructs and sells ordinary standard residential properties and the appreciation amount does not exceed 20% of the deductible items, the land value-added tax shall continue to be exempted. The criteria for tax exemption on ordinary residential properties shall be implemented in accordance with the relevant provisions of the Notice of the Hainan Provincial People's Government on Clarifying the Standards for Identifying Ordinary Residential Properties (Qiong Fu [2019] No. 40).

For families with multiple children (two or more) applying for commercial loans to purchase commercial housing, if family members already own property in the city or county where the intended property is located, the number of properties recognized will be reduced by one. Banking and financial institutions shall implement housing credit policies based on the property ownership inquiry results or certification documents issued by the relevant authorities.

The policy continues to support residents in improving their housing conditions. Taxpayers who sell their own homes in compliance with national regulations and repurchase a home in the same city or county market within one year after the sale will be eligible for a refund of the personal income tax paid on the sale of their current home, in accordance with regulations.