SAT Releases Tax Exemptions for Public Housing

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Sept. 29 – The State Administration of Taxation announced in a statement dated Monday that it was exempting taxes on the use of urban land where the land is developed for public housing.

The steps will be a boost for companies involved in the construction and management of public housing projects.

The tax authorities also said they would stop levying stamp duties for the construction of public housing and will waive both taxes and stamp duties in cases where a property-management company buys apartments for use as public housing.

The tax incentives are scheduled to remain in effect for three years, the statement said.

Earlier this month, Chinese Premier Wen Jiabao called for an increase in low-income housing as the government stepped up its efforts to cool skyrocketing housing prices, fearing a bubble could destabilize the market, drag the economy down, and increase social instability.