Shanghai Revises Land Appreciation Tax
October 11, 2010 in International Tax Monitor
Shanghai Oct. 7 implemented a revised land appreciation tax (LAT) in order to curb property speculation and rising house prices.
Gains realized on the transfer of residential properties will be taxed to discourage developers from setting high house prices.
The VAT rate will be set against the average price of a new home over the past year and will be progressive, ranging from two to five percent. The current rate is one percent.
The tax on developers will be based on a comparison of a property’s price with the average price of surrounding properties. A two percent rate will apply if the average sales price of a new residential project is lower than the average prices of new homes…
The full version of this article is in the BNA International Tax Centre.
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