According to recent reports, China's Ministry of Finance has indicated it plans to finalize the process for implementing value added tax (VAT) reforms for the real estate sector by the end of 2015. Once implemented, real estate sales currently subject to Business Tax (5%) will instead be subject to VAT. Although, the exact rate has not yet been set, it is expected to be around 16%.
China's transition to VAT from Business Tax began in 2012. The real estate sector is one of the last sectors to…