Thursday, Jul 31, 2014Thursday, Jul 31, 2014
News
 

Chinese divorce to avoid property tax: Report

Published on Mar 6, 2013 1:45 PM
 
Apartments are seen from a street in Beijing on Feb 27, 2013. China's new leaders are planning a system of national residence permits to replace the household registration or 'hukou' regime, a government source said, a vital reform that will boost its urbanisation campaign and drive consumption-led growth. -- FILE PHOTO: REUTERS

SHANGHAI (AFP) - Chinese couples are flocking to divorce to avoid a new tax property sales tax imposed by the government, after it left open a loophole for those who end their marriages.

Government marriage registration offices - which also handle divorces - were swamped by scores of couples trying to untie the knot, with one newly-separated woman telling AFP on Wednesday she was heading off to sell a property.

China's central government last Friday issued rules to rein in housing prices, including a nationwide capital gains tax of 20 per cent on profits owners make from selling residential property.

But the terms allow couples with two properties who divorce and put each house into one person's name to then sell them tax-free under certain conditions, after which they can remarry, state media said.

 
If you are not a subscriber, you can get instant, unlimited access here