Bureau of Finance and Local Tax Bureau of the provinces, autonomous regions, municipalities, and planning-outlined cities, and the Bureau of Finance of the Xinjiang Production and Construction Corps:
In order to implement "The State Council General Office's Relaying of the Ministry of Construction and Other Departments' Opinions on Adjusting Housing Supply Structures and Stabilizing Housing Prices" (Guo Ban Fa [2006] No. 37), suppress speculation and investment-driven housing demands, and further strengthen the administration of business tax collection on personal housing transfers, the following issues regarding business taxes are hereby notified:
After June 1, 2006, for individuals selling housing purchased for less than 5 years, the full amount of business tax will be levied; for individuals selling ordinary housing purchased for more than 5 years (including 5 years), business tax will be exempted; for individuals selling non-ordinary housing purchased for more than 5 years (including 5 years), business tax will be levied on the balance after deducting the purchase price of the house from the sales revenue.