China Property Tax Terms Explained

"Full 2" (mǎn èr)
When selling residential property:
✓ Exempt from VAT if property deed or tax receipt shows ≥2 years ownership.
· Note: If deed <2Y but tax receipt ≥2Y → VAT exempt, but personal income tax = 20% on gains (not 1% flat rate).

 "Full 5 Sole" (mǎn wǔ wéi yī)
When transferring residential property:
✓ Exempt from personal income tax ONLY if:
• Ownership ≥5 years (deed or tax receipt) AND
• Family's sole property in Inner Mongolia.

Plus: Land appreciation tax & stamp duty currently waived for residential sales.