China has not yet imposed an inheritance tax and has never released any ordinance or draft related to such a tax, according to a statement posted on the website of the Ministry of Finance, Yicai.com reported.
The ministry said it will follow up the global tendency of the tax, and conduct further research on the issue.
From the perspective of the international development trend of inheritance and gift tax in recent years, some countries who have been levying the taxes are considering reducing or cancelling the collection entirely.
The reason being, because such taxes could discourage investment flow in the country and also encourage large capital outflow, according to the statement.
Inheritance tax is levied on the legacy left by the deceased, which is also called a “death tax.” So far, more than 100 countries in the world have imposed the tax, including 91% of OECD countries.