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Interpreting China’s Pilot Real Estate Tax Reform

Sabrina Wei • 07/12/2021
China Real Estate Tax Reform Report 2021
 
China’s National People's Congress (NPC) declared a significant revision to the country’s taxation code at its October 2021 session, with the announcement that it had authorized the State Council to enact pilot real estate tax reforms in selected areas nationwide.
 
The move can be seen in the wider context of the government’s continuing push towards the goal of “common prosperity,” and has three stated objectives: to advance the legislation and reform of property tax, guide rational housing consumption and economical use of land resources, and promote healthy development of the real estate market.
 
In this summary report we introduce the pilot tax reform plan, explain what’s new, and examine the implications for the real estate market.

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