| Abstract | On 13 December 1993, the PRC promulgated the new Real Property Gains Tax Provisional Regulations, which became effective on 1 January 1994. Although the Regulations can be literally translated as "Land Value Appreciation Tax", the actual scope of the law is quite broad, hence Ernst & Young's translation of the Regulations as the "Real Property Gains Tax". Primarily conceived to target land speculation in the PRC, this new tax will significantly affect all companies and individuals engaged in real property development or investment activities in China. |
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