Hong Kong’s wealthiest tycoons are saving millions in taxes.
Some affluent home buyers have found methods to avoid paying Hong Kong’s significant property taxes, which were levied as a member of the authorities’s property cooling measures, reported Bloomberg.
This is because he formerly didn’t possess any real estate in his name, even though his company Tai Hung Fai Enterprises Co. hold over 300 properties, including resorts, flats, and shopping malls.
Means And Ways
Since the policies of Hong Kong’s Chief Executive Leung Chun-ying were introduced, a lot of the tycoons have been finding ways around them said Alan Wong, HK Manager at Landscope Christie’s International Property.
Another technique used by the wealthy to cut back their property taxes when buying a house would be to get a shell company that holds a property. This really is categorised as a share transfer and only incurs a stamp duty of 0.2 percent. The buyer is exempt from tax in case the company is filed abroad.
Company To Buy/Sell?
If it wasn’t sold by means of a British Virgin Islands-registered company, the purchaser HK $180 million, or would have paid 45 percent in taxes. The tax levied was zero.
This is definitely a loophole. The authorities hadn’t thought about this before they started the measure,” said Raymond Yeung, Australia & New Zealand.
About Singapore Properties
The Chinese according to the last report, was said to have been purchasing Singapore properties as it is consider to land at one of the bottom in price trend now. With the Chinese people being the biggest population, they are also eyeing on the good branded projects launches like the upcoming executive condo, Inz Residence at Choa Chu Kang.