On 15 April the State Administration of Taxation published the Taking Concrete Steps to Strengthen the Collection and Administration of Individual Income Taxes on High-income Earners Notice (Guo Shui Fa  No. 50).
This is seen as another new initiative by the State Administration of Taxation following the implementation of the Further Strengthening the Collection and Administration of Individual Income Taxes on High-income Earners Notice (Guo Shui Fa  No. 54) in May last year.
Income from sale of property
The latest notice calls for increased regulation of proceeds from the sale of housing and other property by high-income earners:
- individual income tax on proceeds from transfers of shares by natural person shareholders, revenue derived from the acquisition of equity interests by individuals in foreign investment, and the transfer by individuals of the shares of listed companies with selling restrictions are all included within the scope of tax collection and administration;
- as to proceeds from the sale of real property, the notice emphasizes that the tax authorities must liaise and cooperate with relevant departments in enforcing stringent taxation measures; and
- with respect to proceeds from the sale of other forms of property, the notice calls for the strengthening of the management of revenue derived from the acquisition of equity interests by individuals in foreign investments using non-monetary assets at assessed values.
You must be a
to read this content, please
Business Law Digest is compiled with the assistance of Haiwen & Partners. The authors can be emailed at firstname.lastname@example.org. Readers should not act on this information without seeking professional legal advice.