China Property tax may be expanded

Second-tier cities with rapidly increasing housing prices might be subjected to property tax, business newspaper China Times reported on Wednesday, citing officials from the State Administration of Taxation.

“Expanding the pilot city project for property tax is an important agenda for tax and fiscal departments this year,” said the official, who requested anonymity.

“The eventual timing and plan will be decided upon by central government.”

Exactly what cities might actually have the tax was not revealed.

A property tax pilot program has, so far, been limited to Chongqing and Shanghai.

Previous reports said Hangzhou could be a possible candidate. An official from Hangzhou’s tax bureau did not confirm or deny the report’s accuracy.

Zhang Zhijie, chief analyst with the China Index Academy, a property market research institute, said the possible plan for Hangzhou is similar to Shanghai’s but with a higher tax rate.

Shanghai only taxes newly bought property, and homes of less than 60 square meters are exempt.

Some other cities, including Nanjing, Shenzhen and Qingdao may also face the tax, China Times said.

China’s Property tax may be expanded

Second-tier cities with rapidly increasing housing prices might be subjected to property tax, business newspaper China Times reported on Wednesday, citing officials from the State Administration of Taxation.

“Expanding the pilot city project for property tax is an important agenda for tax and fiscal departments this year,” said the official, who requested anonymity.

“The eventual timing and plan will be decided upon by central government.”

Exactly what cities might actually have the tax was not revealed.

A property tax pilot program has, so far, been limited to Chongqing and Shanghai.

Previous reports said Hangzhou could be a possible candidate. An official from Hangzhou’s tax bureau did not confirm or deny the report’s accuracy.

Zhang Zhijie, chief analyst with the China Index Academy, a property market research institute, said the possible plan for Hangzhou is similar to Shanghai’s but with a higher tax rate.

Shanghai only taxes newly bought property, and homes of less than 60 square meters are exempt.

Some other cities, including Nanjing, Shenzhen and Qingdao may also face the tax, China Times said.

China to expand property tax to more cities

The State Council has decided to expand property tax to more pilot cities this year, Shanghai Securities News reported Thursday.

It is unknown which cities will be pilot cities and what taxation plan will be adopted, Qin Hong, director of the Policy Study Center of Ministry of Housing and Urban-Rural Development of China, told Shanghai Securities News.

Taxation for owning a property and trading a property will both be considered, the Shanghai Securities News reported, citing Xie Xuren, Minister of Finance.

The Ministry of Finance, State Administration of Taxation and the Ministry of Housing and Urban-Rural Development are evaluating the effects of property taxation in the pilot cities of Chongqing and Shanghai, according to the Shanghai Securities News.

The ‘Shanghai model’ may be applied in new pilot cities, the newspaper reported, citing an unnamed analyst.

CHINA DAILY