New tax threshold bars more people from buying home

Updated: 2011-07-08 15:15

By Ben Yue (

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The rise in China's income tax threshold may bar more people from buying real estate, Beijing Times reported on Friday.

China raised the personal tax threshold in late June from 2,000 yuan ($309.4) to 3,500 yuan per month, which will reduce the number of personal income tax payers from 84 million to 24 million.

While, according to the latest property policy, people who wants to buy residential properties in a city where he doesn't have the registered permanent residence has to provide the tax paying certificate.

Beijing realtor company Homelink estimates only less than 10 percent of people who work in Beijing, but come from elsewhere, will be qualified for buying property due to the tax requirements.

The lifted threshold will change a lot of the current property market, Homelink's chief analyst Zhang Yue said. About 70 percent of Chinese tax payers will see a growth in their income due to the tax law amendment, which will make them easier to buy properties and pay mortgage.