Home World China’s real estate tax: key details and uncertainties in the expansion of the pilot-BBC News

China’s real estate tax: key details and uncertainties in the expansion of the pilot-BBC News

by news dir

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After Chinese leader Xi Jinping voiced his desire to advance real estate tax legislation and trials, the Standing Committee of the National People’s Congress of China announced on Saturday (October 23) that it authorized the State Council to carry out real estate tax reform trials in some regions. Ten years after Shanghai and Chongqing launched China’s first round of real estate tax pilots, this new tax category that has received much attention has finally made new substantial progress.

At present, details such as the scale and tax rate of the pilot have not yet been announced. Experts believe that the imposition of a real estate tax will raise the cost of buying a house for low-income buyers, and it is unlikely to curb the rise in house prices.

How will the pilot be implemented

According to the announcement of the Standing Committee of the Chinese People’s Congress, the real estate tax in the pilot area is for residential and non-residential real estate, excluding legally owned rural homesteads and their upper residences. The owners of land use rights and house owners are taxpayers of real estate tax.

The announcement did not specify the scope of the pilot and the specific tax rate. It only stated: “The State Council formulates specific measures for the real estate tax pilot, and the people’s governments of the pilot regions formulate specific implementation rules. The State Council and its relevant departments and the people’s governments of the pilot regions should establish a scientific and feasible collection management model. And procedures.”

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