UmarJustice
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A hefty tax on sale of property in China has triggered a slew of divorces. Increasingly, Chinese couples are rushing to marriage registrars, seeking divorces to avoid the new restrictions about a family holding more than one residential property.
Marriage registrars in Shanghai and towns in surrounding areas saw a sudden jump of applicants seeking divorces after a new tax law was introduced last Friday. "We have never seen so many couples seeking a divorce in a single day, and by 2pm the number had already surpassed the previous high of 42 couples," the Shanghai Daily quoted an official of the registration centre in Zhabei District of the city as saying.
New rules stipulate that an individual or family holding more than one house will pay 20% tax on sale of property. Many couples are seeking divorces so that each spouse has one property each and escape the higher tax. Real estate agents organizing sale deals are also encouraging the trend, sources said.
This is the second wave of divorce seeking by Chinese couples, which was first sparked off several months back after banks refused to lend to families trying to buy a second home. Divorced couples then made separate applications for loans as individuals.
The government has not yet reacted to the new trend sparked by what observers regard as a loophole in the new law that allows couples with two properties to sell them in two different names.
Property tax sparks off divorces in China - The Times of India
Marriage registrars in Shanghai and towns in surrounding areas saw a sudden jump of applicants seeking divorces after a new tax law was introduced last Friday. "We have never seen so many couples seeking a divorce in a single day, and by 2pm the number had already surpassed the previous high of 42 couples," the Shanghai Daily quoted an official of the registration centre in Zhabei District of the city as saying.
New rules stipulate that an individual or family holding more than one house will pay 20% tax on sale of property. Many couples are seeking divorces so that each spouse has one property each and escape the higher tax. Real estate agents organizing sale deals are also encouraging the trend, sources said.
This is the second wave of divorce seeking by Chinese couples, which was first sparked off several months back after banks refused to lend to families trying to buy a second home. Divorced couples then made separate applications for loans as individuals.
The government has not yet reacted to the new trend sparked by what observers regard as a loophole in the new law that allows couples with two properties to sell them in two different names.
Property tax sparks off divorces in China - The Times of India
