BEIJING, Jan 29 (Reuters) – China will grant tax breaks to new real estate investment trusts (REITs), the Ministry of Finance and the Inland Revenue said on Saturday, as part of a nationwide push to boost the burgeoning REITs market.
Corporate income tax related to asset transfers will be exempted prior to the incorporation of the REITs and may be deferred during the incorporation process, it said in a statement.
China launched a public REITs market in Shanghai and Shenzhen in June, allowing infrastructure projects – from toll roads to sewage treatment plants – to go public as part of efforts to reduce local government debt burdens.
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Reporting by Yew Lun Tian; Adaptation by William Mallard
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