An utter nonsense loophole in Chinese Tax rule is pushing Married Chinese couples into divorce just for the sake of a pretty very good Tax waiver that it would bring.
Already with one Child policy China has ensured marriages are very hard to be made and even harder to be sustained and now this materialistic rule is out to destroy marriages, many fear.
New measures announced last Friday by China to cool down the property market are driving married couples to divorce.
In Shanghai, a marriage registration center divorced 53 couples in one day this week, according to Reuters. Other cities have also reported the same trend.
The rush to untie their knots is an attempt to exploit a gap in the legislation.
According to the new rules, property owners who sell their houses must pay a whopping 20 per cent capital gains tax to the government. Authorities hope this would discourage property speculation.
But there is a way out for couples with two properties. If they divorce, they can move one property into one person’s name, and the other, to the other person. When they sell the house it’ll be tax free. Then, they can remarry.
One official from the Shanghai Civil Affairs Bureau warned wives to be wary, suggesting some men might use the tax as an excuse to divorce with no intention of remarrying.