Friday, September 2, 2011
There has been a huge uproar recently in the Chinese blogosphere and press over a recent court decision on divorce law. The Chinese Supreme Court had decided on August 12 that real estate that is registered in the name of one spouse remains that spouse’s property after divorce. The Chinese real estate market has been booming in recent years, and the decision of course immediately caused many Chinese couples to transfer real estate registered in the name of one spouse to joint ownership. But all were shocked to discover that the transfer was slapped with hefty real estate transfer taxes based on the value of property transferred. In order to placate the raging controversy, the Chinese Tax Bureau announced today that starting Sept. 1, all such transfers of real estate from one spouse to joint ownership would be tax-free.
Ivy Law Group LLC
The Ivy Law Group, based in New York and Beijing, provides advice on Chinese law. T.K. Chang is a graduate of Harvard Law School and has practiced law for 27 years in Beijing, Hong Kong and New York.