Exemption of those Property Rights as Free Gift and Action

Taxpayers, who may by the following two(2) ways to circumvent the tax payable under the "Donee Income":-

(1) First, - for gift items other than housing or cash;
(2) Second, - by giving the house a permanent residence that is rather than ownership of the house.

According to tax law, the following scenario shows that, for housing property as free gift of the parties, it does not levy personal income tax:-

  • (1)  Housing property owner transfer the property rights as free gift to  its spouse, parent, child, grandparent, grandchild, children, grandchildren, brothers and sisters;
  • (2)  Housing property owner transfer the property rights as free gift directly, it depends on whether its commitments or maintenance or alimony obligations of those dependents people;
  • (3)  Housing property owner dies, it is legally acquired property rights of heirs, testamentary heir or legatee.

In addition to the above circumstances, for those outside the housing property owner, it transfer the free property rights to others as free gift, or due to unpaid recipient donee, the donee’s income by housing.   According to "The State Council Financial Departments and Other Taxable Income" project to pay personal income tax, that is 20%.