Taxes on the rental of a writing building include the following:
In accordance with article iii of the provisional regulation of the people's republic of china on housing taxes, the property tax is based on income derived from the rental of property. When the building is rented, the property tax is payable at 12 per cent of the rental income。
Ii. Turnover tax (or value added tax)
The rental of a writing building is a real estate rental service, with a turnover tax of 5 per cent of rental income. Note that after the “breeding”, the tax is actually vat, but the rate remains unchanged at 5 per cent。
Iii. Urban maintenance taxes and surcharges
Payment is based on the actual amount of the turnover tax (or value added tax) paid, multiplied by the city-building tax rate (7 per cent, 5 per cent and 1 per cent, respectively) and the fee surcharge rate of 3 per cent。
Iv. Individual income tax
According to articles 3 and 6 of the law of the people's republic of china on personal income tax, personal income tax is calculated on the basis of property rental income. For each income not exceeding $4,000, the cost is deducted by $800; for more than $4,000, the cost is deducted by 20 per cent, and the balance is taxable by 20 per cent。
The property lease contract is set at one thousandth of the lease amount. The tax is less than one dollar, calculated on the basis of a one dollar sticker。
In the light of the above, the tax payable by the lessor for the rental of a building includes property tax, turnover tax (or value added tax), urban maintenance construction tax and surcharge, personal income tax and stamp duty. Please note that the calculation of specific taxes and fees may vary depending on regional, policy and other factors, and recommend that professional tax consultants or lawyers be consulted in practice to ensure compliance。
