Shanghai Municipality, Tentative Measures on the Launch of the Pilot Project for Levy of Property Tax on Certain Residential Premises for Individuals

Main contents: Property tax shall provisionally be calculated based on 70% of the market transaction price of the taxable residential premises, and the applicable tax rate shall provisionally be 0.6%. Where the market transaction price of the taxable residential premises per square metre is lower than twice the average sales price of the commodity residential premises newly built in Shanghai in the preceding year, the tax rate shall be reduced to 0.4% (Articles 4 and 5). Where a person residing and working in Shanghai that has held a residence permit for three years or more newly purchases a unit of residential premises that are the only residential premises owned by his/her family, property tax shall be exempted provisionally. Where the person has held a residence permit for less than three years, the property tax already levied on the premises may be refunded after he/she has held the residence permit for three years or more and is working and living in the municipality (Article 6).