THE local taxation authority is expected to start levying taxes according to the property evaluation value instead of the contractual prices in pre-owned housing transactions starting in July.
Currently, it is a common practice that a home seller signs two contracts with a homebuyer one of the contracts states the actual transaction price while the other used to register with the authority has a price much lower than the actual price to pay fewer taxes.
The plan had been submitted to the city government for approval, the local taxation bureau said.
In a report to an inspection team from the State Council on property price control in major cities, Shenzhen Executive Vice Mayor Lu Ruifeng said the new practice was to tighten taxation control over speculative housing transactions.
The taxation bureau is now working on details concerning the new practice with the housing administration. The new policy is likely to become effective July 1.
The new taxation practice is designed to block taxation loopholes and prevent home sellers from paying lower taxes than they should have paid.
(Han Ximin)
