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Minister says property tax is 'next task' [Copy link] 中文

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Post time 2016-7-26 16:29:30 |Display all floors
The government's determination to launch the long-awaited property tax would help cool down the real estate market in the long term, industry analysts said.

Speaking on the sidelines of the G20 Finance Ministers and Central Bank Governors Meetings in Chengdu, Sichuan province, Finance Minister Lou Jiwei pledged to go to great lengths to introduce the property tax.

Promoting the reform of income tax and property tax will ensure fairer income distribution. However, effective policies for income redistribution will definitely meet obstacles, Lou said. "This is a challenge, and this is our next task. We will be devoted to carrying it on."

The property tax is predicted to take effect by the end of 2017 at the earliest, Liu Jianwen, a professor at Peking University Law School, was quoted as saying by China Business News.

Experts said the policy could help reduce demand and stabilize prices to some extent. But it may take some time before the long-awaited property tax can be implemented.

"Information collection, taxation capacity building and vested interests are the major challenges," Lou pointed out.

"It's difficult to say when the policy will be completed. As far as I'm concerned, the reform may need no less than three to five years," said Zhang Dawei, chief analyst at Centaline Property.

The taxation system needs improvement and requires thorough investigation into the current property ownership, added Guo Yi, marketing director at Yahao Real Estate Selling & Consulting Solution Agency.

However, the policy's ability to restrain demand remains to be proven.

"I will still buy a house even if there are more taxes, because I need it," said Li Yanan, an engineer working at a Beijing-based construction company.

Besides the property tax, the reform of individual income tax has become another factor that analysts refer to when predicting market trends.

Guo said that the reform would help boost individual demand.

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Post time 2016-7-27 22:00:48 |Display all floors
the real estate market?
all land in cities are owned by gov. the individuals rent pieces of land from gov
the govs have a monopoly of land supply.
why were the price of land rents rising in the past 20years?
were party and gov leaders driving the rents up and up?
our life is full of sunshine

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Post time 2016-7-28 00:56:07 |Display all floors
{arched eyebrow}  I believe that 468259058 is correct - if the government truly 'owns' all property that is physical land, and merely allocates it to the people, why is this called a property tax?
China's Eccentric 'Uncle Laowai' from Chicago, IL

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Post time 2016-7-31 20:40:44 |Display all floors
tradervic Post time: 2016-7-28 00:56
{arched eyebrow}  I believe that 468259058 is correct - if the government truly 'owns' all property  ...


Property taxes account for about one-third of all state and local tax collections in the United States, according to the Tax Foundation.

Based on the state’s median home value of $319,900 it's a whopping $7,335 a year.
Westchester County, N.Y. ($9,647 a year); Nassau County, N.Y., ($9,080) and Bergen County, N.J. ($8,893).


China's property tax will not be as bad as in New Jersey, USA.

A word of caution:
Passive rental income is subject to a flat 30 percent withholding tax.
Rental income from real property located in the United States and the gain from its sale will always be U.S. source income subject to tax in the United States regardless of the foreign investor's personal tax status and regardless of whether the United States has an income treaty with the foreign investor's home country.

A nonresident who fails to submit a timely filed income tax return loses the ability to claim deductions against the rental income, causing the gross rents to be subject to the 30 percent tax.  Generally, the nonresident will need to retroactively file at least six years of delinquent income tax returns, or all prior year tax returns, if they have held the rental property for less than six years. However, the ability to elect to treat the rental income as effectively connected with a U.S. trade or business will be lost after 16 months from the original due date of the return, and the remaining back years may be subject to tax under the gross income method.  Rental income from real property located in the United States and the gain from its sale will always be U.S. source income subject to tax in the United States regardless of the foreign investor's status and regardless of whether the United States has an income treaty with the foreign investor's home country.

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Post time 2016-8-1 05:08:28 |Display all floors
We all love a property tax

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