Property owners could face large tax bill
There has been a great deal of discussion about buying property in Shenzhen.
Some people have expressed concern about the possible threat from Shenzhen real estate to the Hong Kong economy, especially to property prices.
However, when these matters are discussed, I have seldom heard anyone mention that a Hong Kong person who works here but lives over the border, comes under the mainland's personal income tax laws.
I think the tax rate can be as high as 50 per cent. It may even be higher in some cases.
Of course, in most cases, the mainland authorities have not yet enforced the tax rules.
However, as the disposable income of mainlanders reaches an unprecedented high, there is a very good chance that soon, income tax laws will be strictly enforced and there will be no exceptions.
People who are considering moving to Shenzhen, should bear this in mind.