Reported 12 months ago
The Property Hoarding Tax 2.0 is set to be implemented in July, impacting multiple property owners the most. Real estate experts suggest 3 tax-saving strategies to address the new tax system, including 'registering ownership', 'renting out idle properties', and 'reducing property ownership'. After the implementation, households with 3 or more properties will face higher tax rates ranging from 2% to 4.8%, particularly affecting unsold properties by developers and landlords not declaring rental income. For multiple property owners, pre-registering for personal use can enjoy a lower tax rate of 1.2%, potentially saving up to 3 times the tax costs. Other strategies involve renting out idle properties to reduce tax rates, and liquidating less profitable properties to retain those with higher development potential. Real estate developers and new property owners with large unsold property inventories face challenges due to the slow liquidation process and significant tax increases with the new tax policy in place.
Source: YAHOO