Dec. 24 – The Ministry of Finance and the State Administration of Taxation released on Tuesday a circular adjusting the business tax on individuals who transfer ownership of the houses in China.

The circular, “Adjusting Business Tax Policies for Individuals Transferring their Ownership of Houses,” stipulates that individuals transferring the ownership of their non-common houses which have been purchased for less than five years shall pay the full amount of business tax.

Individuals transferring the ownership of their non-common houses which have been purchased for five years or more, or the ownership of their common houses which have been purchased for less than five years, only need to pay business tax on the balance between the selling price and the original purchase price.

Individuals who have owned their common house for more than five years and are transferring the ownership will be exempt from business tax.

The new taxes will take effect from January 1, 2010.