MS：China Property

0125 　　　８页 pdf

Quick Comment: The State Administration of Taxation recently published a Circular on Land Appreciation Tax (LAT) settlement, effective February 1, 2007. The Circular outlines conditions under which the LAT levy is payable (Exhibit 1). As LAT is currently levied on a pre-paid basis based on 1-3% of revenues, depending on cities, the Circular could have a far-reaching effect on near-term earnings and cash flow, assuming full implementation by local officials.