Asianfin -- China's Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban-Rural Development announced on Wednesday new tax policies to support the stable and healthy development of the real estate market. The policy aims to offer relief for individual home sellers in cities that have removed the classification of "ordinary" and "non-ordinary" housing. In cities that have abolished the classification of ordinary and non-ordinary housing, individuals selling homes they have owned for more than two years will be exempt from value-added tax (VAT). This includes major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. In these regions, the VAT exemption policy will align with the rest of the country, where individuals selling properties they have owned for at least two years will not be subject to VAT. Additionally, in cities where ordinary residential standards have been removed, taxpayers who build and sell homes that meet ordinary residential standards, with a value increase of no more than 20% after deductions, will continue to be exempt from land value-added tax (LVAT). These measures are part of China’s broader strategy to stabilize the real estate market and support long-term growth.