China Studies Proposal to Tax Real Estate Based on Market Value

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Jul. 27 – China is weighing a proposal that would tax commercial property based on its market value in an effort to reform its tax system and discourage speculative buying.

Commercial property tax is currently based on the original purchase price. Taxpayers who use commercial property for their own use are charged a 1.2 percent tax annually.

Authorities have been debating on whether to charge property taxes for months now with many reasoning that taxes could stabilize rising real estate taxes and give local governments more income.

Proposals have been aired to extend the tax to residential property, but the idea has run into opposition and is unlikely to be introduced any time soon, officials told Reuters.

2 thoughts on “China Studies Proposal to Tax Real Estate Based on Market Value

    Steve Weyer says:

    Currently, is there a profit tax levied by the China government (central, provincial or city) on the sale of a residential property based on the difference original purchase price vs. the sale price (i.e. the profit)?

    Property is question was held by current owner for 10+ years and is in Shenzhen.

    Editor says:

    @Steve Weyer

    Hi Steve. Please email tax@dezshira.com for clarification or, if you are in Shenzhen, you can stop by Dezan Shira’s office in the city.

    Contact is:
    Tel: +86-755-8366 4120
    Email: shenzhen@dezshira.com

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