(Ministry of Finance, State Administration of Taxation, Ministry of Housing and Urban-Rural Development Announcement No. 70 of 2023)
The Announcement makes it clear that land used for the construction of affordable housing projects is exempt from urban land use tax. Stamp duty related to affordable housing and stamp duty related to affordable housing purchasers of affordable housing shall be exempted. Where affordable housing is built in development projects such as commercial housing, urban land use tax and stamp duty may be exempted according to the proportion of the construction area of affordable housing to the total construction area according to the relevant materials issued by the government department. Where enterprises, public institutions, social groups and other organizations transfer old houses as affordable housing and the value-added amount does not exceed 20% of the deducted project amount, they are exempt from land value-added tax. Deed tax exemption is exempted from deed tax for affordable housing operation and management units that repurchase affordable housing and continue to serve as affordable housing. For individuals purchasing affordable housing, deed tax is levied at a reduced rate of 1%. Affordable housing projects are exempt from various administrative fees and government funds, including the relocation construction fee of the air defense basement, the urban infrastructure supporting fee, the education fee surcharge and the local education surcharge. The Announcement will be implemented from October 1, 2023.
(Tax General Finance Fa [2023] No. 48)
The Circular clarifies the scope of withholding and payment, collection and collection and entrusted collection, management, the proportion and limit of tax handling fee payment, and the management of tax handling fees, and the Notice will be abolished at the same time as the Notice of the People's Bank of China of the State Administration of Taxation of the Ministry of Finance on Further Strengthening the Management of Withholding and Collection of Tax Fees (Cai Bong [2019] No. 11) from October 1, 2023.
The Measures specify that the central government arranges special transfer payment funds to support the development of inclusive finance, which are used to support the development of interest discounts for start-up guarantee loans, central financial support for the construction of inclusive financial development demonstration zones, and targeted fee subsidies for rural financial institutions. Eligible individuals and small and micro enterprises can apply for guaranteed loans for entrepreneurship and financial subsidized interest support. Eligible start-up guarantee loans can be included in the scope of special fund subsidy support. For eligible start-up guarantee loans, the financial department will give a financial discount of 50% of the effective interest rate of the loan.
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