BEIJING, Dec. 30 (Xinhua) -- China will lower the value-added tax (VAT) levy rate from 5 percent to 3 percent for individuals selling housing purchased less than two years ago, effective Jan. 1, 2026, according to an announcement issued by fiscal and tax authorities on Tuesday.

The new policy, jointly released by the Ministry of Finance and the State Taxation Administration, further clarifies that sales of housing purchased two years ago or more will be exempt from VAT.

For VAT related to individual housing sales that has not been declared or paid before Jan. 1, 2026, the announcement noted that the new provisions can be applied if the requirements are met. ■