Shanghai to reduce some taxes on real estate transactions
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BEIJING, Nov 18 Reuters Shanghai said on Monday it would reduce some taxes on real estate transactions from Dec. 1, according to state media, a move designed to support the property market in China39;s secondlargest city.

China has been aiming to bolster the crisishit property market by increasing demand and easing developers39; financial difficulties, with its finance ministry last week unveiling tax incentives on home and land transactions.

An index tracking China39;s real estate shares and an index for Hong Konglisted mainland property developers were both trading higher on Monday.

Shanghai will eliminate the division between socalled ordinary and nonordinary housing when it levies valueadded taxes and personal income taxes on sales. Nonordinary housing consists of properties of 144 square metres 1,550 square feet and larger that had previously been subject to higher taxes.

Residents will be exempt from VAT when they buy a property and hold on to it for two years or more before selling it, according to state media.

Shanghai also raised the standard for levying deed tax to properties larger than 140 square metres from the previous 90 square metres.

For the purchase of a 10 million yuan 1.38 million apartment, a buyer39;s deed tax payment will be reduced to a…