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Inheritance tax may be levied in China
(Xinhua)
Updated: 2004-11-21 15:45

China may soon levy an inheritance tax of up to 40 percent.

In anticipation of the new tax, property sales have shot up around the country in an effort by some individuals to maintain personal assets.

The housing supervision department in south China's Guangdong province says many people have purchased property in the name of their children to avoid the tax.

But Guangdong tax officials pointed out that buying property for children is not tax-exempt, since it could be taxed on bestowal.

Earlier, Chinese taxation experts suggested the implementation of the inheritance tax be delayed, as the majority of Chinese people are still middle or low-incomers.

Tax authority denied any reports on drafting the inheritance tax regulation.

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