The Shanghai municipal government has announced details of property tax rates on Tuesday.
The decision to impose the property tax was announced on Jan 27, in an effort to cool property prices in the Chinese economic hub.
The rates have two slabs. The properties priced at or below 28,426 yuan ($4,323) per square meter (sq m) will attract a tax of 0.4 percent of its total value annually, while those priced higher than that will have a tax rate of 0.6 percent of the housing price, according to a Xinhua News Agency report.
The taxation standard has been worked out in accordance with the latest statistics collected by the Shanghai Municipal Statistics Bureau, which showed that the city's average housing price for newly built properties was 14,213 yuan for each sq m in 2010.
The announcement said if the property trading price is lower than twice the city's average price of newly built commercial or residential properties in previous years, the tax rate will be 0.4 percent.
All the related tax divisions have been sent the new taxation standard and they will start collecting the property tax accordingly, the local official media Shanghai Morning Post reported on Wednesday.
A notice will be mailed to individuals who are required to pay the tax and the deadline for payment is Dec 31. According to the notice, in case a family fails to pay the full tax in time, an extra 0.05 percent late fee will be imposed on a daily basis from Jan 1, 2012.
The decision to impose the property tax was announced on Jan 27, in an effort to cool property prices in the Chinese economic hub.
The rates have two slabs. The properties priced at or below 28,426 yuan ($4,323) per square meter (sq m) will attract a tax of 0.4 percent of its total value annually, while those priced higher than that will have a tax rate of 0.6 percent of the housing price, according to a Xinhua News Agency report.
The taxation standard has been worked out in accordance with the latest statistics collected by the Shanghai Municipal Statistics Bureau, which showed that the city's average housing price for newly built properties was 14,213 yuan for each sq m in 2010.
The announcement said if the property trading price is lower than twice the city's average price of newly built commercial or residential properties in previous years, the tax rate will be 0.4 percent.
All the related tax divisions have been sent the new taxation standard and they will start collecting the property tax accordingly, the local official media Shanghai Morning Post reported on Wednesday.
A notice will be mailed to individuals who are required to pay the tax and the deadline for payment is Dec 31. According to the notice, in case a family fails to pay the full tax in time, an extra 0.05 percent late fee will be imposed on a daily basis from Jan 1, 2012.
