[photopress:house.jpg,full,alignright]Shanghai may soon restore a land appreciation tax on residential houses. This follows the tax on vilas that was levied villas last June. A property agent said, ‘For the past month, some property agents have been speculating that land appreciation tax will soon be levied on condos. We believe it’s very possible that Shanghai may restore the imposition of land appreciation tax on residential houses.
Shanghai began levying the tax on villas on June 1. Gains resulting from the sale of property rights or transactions by a real estate company are taxable under this policy, and the tax rate imposed on real appreciation corresponds to the progressive tax rates amounting to a range from the minimum 30 percent to the maximum 60 percent of the real appreciation.
As the central government started tightening land use on September 5, many experts and insiders predict residential houses (those of no more than three bedrooms and of average selling price) will soon be subject to land appreciation tax in Shanghai.
Source: China Daily