Shanghai levies new property transfer tax
17 July 2007
Shanghai has started to impose a land value-added tax for the transfer of specific properties that have been owned by the current owner for under five years, according to Xinhua (in Chinese). The tax rate is 0.5% of the transfer value. The criteria for properties to be taxed include a plot ratio (the ratio the area of construction to the land area) of under 1.0, single units over 140 sq m and an actual transaction price of more than 1.44 times the average price in the same area. The taxation rate is 9.55% of total transfer income.