With the release of the new policies of the housing market, the personal income tax rate which is 20% and would be levied on the secondhand house transactions is on schedule. Trading of houses which are the only houses for the households and with more than five years’ ownership can be exempt from the 20% personal income tax.
The upcoming income tax has triggered a strong reaction in the market, in particular those invested their money in the rising housing market. Recently not only more buyers and sellers are rushing to sign contracts, but also such market fear has led to some seemingly ridiculous behaviors such as fake divorce.
Just in a single day of March 6 in Beijing, the number of divorces is more than one thousand, doubled than usual. On the same day in Nanjing, the number of divorces reached 294 pairs, also twice of the usual number. The civil affairs department of Nanjing issued a total of 1600 single certificate, the purpose column of which are all “to buy a house”.