National tax on houses, land expected next year
China’s top legislature, the National People’s Congress (NPC), is drafting a property tax law for houses and land and is expected to be imposed in 2015, said an official from the NPC, who asked for anonymity due to the sensitivity of the issue.
The tax rate has not been decided, nor is whether the tax will be levied on new properties or on properties already owned. The tax will combine several existing taxes, including a land tax on property developers, a tax for occupying arable land and a tax for house transactions.
China started to levy property taxes in Chongqing and Shanghai in 2011 as pilot projects. In Shanghai, a house of more than 60 square meters per person, it will be taxed at a rate of 0.4 percent to 0.6 percent of the total property price annually. (Photo 2)