Regarding the business tax policy, the notice stated that if an individual purchases a house for less than 2 years and sells it to the outside world, the business tax will be levied in full; Individuals who purchase houses for more than 2 years (including 2 years) for external sales shall be exempted from business tax.
The notice pointed out that Beijing, Shanghai, Guangzhou and Shenzhen will not implement the preferential policies of deed tax in the second paragraph of Article 1 and business tax in Article 2 of this notice for the time being. The above-mentioned business tax policy for individual housing transfer in cities is still implemented in accordance with the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Adjusting the Business Tax Policy for Individual Housing Transfer. All the provisions of the Notice apply to other areas outside the above-mentioned cities.