Hey all,

I've spent hours trying to figure out the precise breakdown of taxes/fees that would need to be paid out for a simple transfer/sale of residential property in Shanghai.

Depending on this years CNPCongress meeting, new regulations would probably come into effect, when or how, we'll have to see. Currently, my understanding is that there is a 20% income tax from the sale (of which should theoretically fall under the 80,000 USD/year taxable income for US expats...any differing opinions?) and a 5% capital gains tax levied against the profit, as opposed to the gross sales price, which was the case up until a couple months ago? I also understand there is supposed to be some sort of 1.2% real estate tax to be paid annually? Or is this taken care of when you purchase the apartment, new and straight from the developer?

Any ideas on today's breakdown, if I were to sell an apartment today?

Thanks much!

Anything the People's Congress decides will take a long, long time to actually become law and result in implementation regulations.

Done some more research, and it seems there is some consensus on the following:
2% income tax on gross sale, exempt if apt has been owned for 2+ years
5.55% business tax on gross sale, which becomes a 5.55% capital gains tax if apt owned for 2+ years (given it is the only house under owner's name). This tax might be exempt as well depending on what happens at People's Congress, and yes, definitely takes a while for anything to become law.
There may be a third major tax, but there has not been consensus on this one, so I'm not going to post this up as of yet.

Your apt sale is subjected to 20% capital gains tax (some tax districts allow 1-2% gross sales in lieu of you documenting what the actual gains are),
There is also a 5.55% biz tax on the gross for apts held under 5 yrs. (currently the govnt is running a promotion, exempting this for apts held over 2 yrs that are classified "ordinary" until end 2009).
The "ordinary" classification depends on which part of Shangahi it is in, the gross amount and size of the apartment.
There are also title fees, transaction fees, notary fees,....