Property transfers subject to income tax
Laws - As
of September 26, individuals who transfer the right to buy real property and/or
the value of capital contributed to housing projects will have to pay income
tax on that money raised.
A tax
rate of 25% shall be applied. Taxable income is calculated on the transfer
price after initial costs and other expenses relating to the transfer are
deducted.
If the
initial cost and relevant expenses to determine taxable income are
unidentified, a tax rate of two percent of the price of the transfer shall be
applied.
If the
price of the transfer is less than the market price at the time of transfer,
then the tax agencies shall fix the transfer price.
In the
case that the property has been transferred many times and transfer contracts
were made before September 26, if the initial cost is unable to be determined
or the price of the transfer is less than the price stipulated in the list of
prices issued by the provincial people’s committees, then the price of the
transfer shall be fixed by the tax agencies.
Transferors
are now wondering on what basis tax agencies shall base market prices.
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• Decision details extension on corporate income tax payments (21/10/2011)