CAPITAL gains from property and securities dealings in China will be put under the personal income tax category, making investments less attractive, according to an expert in mainland taxation.
The move will raise combined taxes on property transactions to as high as 80 per cent.
Arthur Ho, head of Price Waterhouse's China tax group, said detailed regulations for the individual income tax law would specify that capital gains in securities and property were taxable.
Gains relating to the sale or exchange of property will be subject to a flat 20 per cent capital gains tax.
A similar rate is likely to be applied to the disposition of marketable securities.
China has already introduced a land appreciation tax under which tax rates ranging from 30 per cent to 60 per cent will be levied on gains generated by sale of property.
Authorities have also declared they intended to introduce levies on dealings in stocks.
