Premier Li Keqiang chaired a State Council executive meeting on June 18, 2021, deciding to adopt favorable policies to expedite development of affordable rental housing across the country.
It was decided at the meeting that starting October 1, 2021 housing rental enterprises will be subject to a simple method of tax collection in private rentals, with the value-added tax rate reduced from 5 percent to 1.5 percent. Enterprises and public institutions will see the property tax cut to 4 percent in rentals to individuals and large-scale, professional rental enterprises. Cities with net population inflow could use collectively owned profit-oriented construction land and land owned by enterprises and public institutions to build affordable rental housing, with unused, inefficiently used business buildings and factories allowed to be transformed into rental houses.