Property transfer
In a property transfer, the taxes paid by the purchaser of real estate are as follows:
- Deed Tax: 3 to 5% of the purchase price, and
- Stamp Duty: 0.05% of the purchase price
Individual buyers may enjoy a favourable deed tax rate or be exempted from paying the stamp duty provided that required conditions have been satisfied.
In a property transfer, the taxes payable by the seller of real estate are as follows:
- Stamp Duty: 0.05% of the purchase price
- Land Value Added Tax: Progressive scale ranging from 30% to 60% depending on the amount of taxable gains derived from the transfer of real property
- Value Added Tax: 9% of the gross sales proceeds which will be passed through to the purchaser to pay. If the real estate properties were acquired by the seller before 30 April 2016, the seller may opt for a simplified tax method, ie apply a reduced VAT rate of 5% on the gross sales proceeds which will be borne by the seller itself, and
- Income Tax (for enterprise): 25% of net profit (consolidated with the enterpriseʼs annual profit)
Share transfer
In a share transfer, the taxes paid by a purchaser of a real estate company are as follows:
- Stamp Duty: 0.05% of the share transfer price
In a share transfer, the taxes paid by a seller of a real estate company are as follows:
- Stamp Duty: 0.05% of the share transfer price
- Income Tax (for enterprise): 25% (consolidated with the enterpriseʼs annual profit and foreign enterprises not maintaining establishments in China are taxable on their income and gain on a gross withholding basis at the rate of 10%)
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