BEIJING — China has decided to refund the individual income tax for qualified home buyers from Oct 1, 2022 to the end of 2023 to support residents to improve living conditions.

During the period, taxpayers who sell their current home and purchase a new housing within one year after the sale are eligible for the tax refund, according to a statement jointly released by the Ministry of Finance and the State Taxation Administration on Sept 30.

The individual income tax already paid upon the sale of the old housing shall be fully refunded if the price of the newly-purchased home surpasses or equals the old one. Otherwise, the tax rebate will be based on the price ratio of the two homes, said the statement.

It also clarified that homes sold and repurchased by taxpayers should be located in the same city, and those who sell their housing must be the owner or one of the owners of the newly-purchased home.