From China Daily via China Economic Net:
The government will impose individual income tax on second-hand property transactions from August 1, a move that’s expected to further squeeze speculation in the overheated market.
The government will levy an assets transfer tax on second-hand house trading from individual sellers with a fixed rate of 20 per cent, and the base of the tax is transaction price minus the original price, according to a State Administration of Tax announcement on Wednesday.
Reasonable costs, including home improvement and facility maintenance expenditure as well as mortgage interest, would be excluded from the taxable amount.[Full Text]
