What Should I Include on a House Rental Receipt?

According to the Ministry of Finance and State Administration of Taxation Caishui [2008] No. 24 "Notice on Tax Policies Related to Affordable Housing and Housing Leasing for Low-rent Housing", individuals renting houses, regardless of their purpose, are halved on the basis of the 3% tax rate Levy business tax.

House lease tax

Take the monthly rent of 5,000 yuan as an example to calculate the taxes?

Personal rental calculation:

(1)

Q: The lease price is 2,000 yuan. Are the taxes and fees that the lessor should pay? How much is the last?

Answer: The tax payable by the lessor for renting out the property each month includes (the numerical units after the equal sign below are yuan),

(1) Business tax: monthly rental income × 3% / 2, that is, 2000 × 3% / 2 = 30;

(2) Urban construction tax: Business tax × (1% or 5% or 7%) (in urban areas, the tax rate is 7%; in county towns, towns, the tax rate is 5%; The tax rate is 1%; foreign nationals, Hong Kong, Macao, and Taiwan personnel are not levied), which is calculated according to urban standards, that is, 30 × 7% = 2.1;

(3) Education surcharge: Business tax × 3% (excluded by foreign nationals, Hong Kong, Macao and Taiwan personnel), that is, 30 × 3% = 0.9;

(4) Local education supplement: business tax × 1%, that is, 30 × 1% = 0.3;

(5)

According to the relevant regulations and the entrustment of the taxation department, the house leasing management department collects leasing management fees on house leasing, collects private house leasing tax and foreign enterprise leasing tax. Lease management fees and house lease tax are based on rent and are organized according to certain standards

Foreign individuals or enterprises purchasing commercial houses in Shanghai shall pay taxes in accordance with the law if they rent them out. The so-called "foreign individual" refers to foreign personnel (Hong Kong, Macao and Taiwan compatriots are temporarily included in this scope).

The so-called "foreign enterprises" refer to enterprises with foreign investment in China (Hong Kong, Macao and Taiwan compatriot investment enterprises are temporarily included in this scope).

There is a difference in the tax payment of private houses between overseas individuals and overseas enterprises.

Foreign individuals who rent out property houses in Shanghai when rented out will pay 15% of the total tax for half of the income below 2,000 yuan, and 21% of the total tax for half of the income. This is consistent with the tax paid on domestic private house rental.

Overseas companies that have purchased property rights houses in Shanghai for lease, and if there is a permanent establishment in China, they shall pay business tax and corporate income tax. Business tax is 5% of rental income and corporate income tax is 30%. If the institution cannot provide accurate proof of costs and expenses, the principle is to pay 30% of the rental income.

A property tax is also payable for overseas individuals and companies who purchase property ownership houses in Shanghai and pay a one-time payment based on the balance remaining after deducting 20% of the total house price from the second month of residence.

If the foreign-owned house is rented out through an intermediary, the owner of the house has to pay an intermediary fee to the company. Regardless of whether the money is paid or not, the tax is still paid based on the original income of the rent. If the foreign-owned house is leased out together with the interior furniture, the tax is still calculated based on the total rental income, and this so-called "furniture use fee" cannot be deducted before paying the tax. ^[3]