The Announcement on Relevant Matters Concerning the Collection and Management of Personal Income Tax on Personal Rental Housing issued on September 4th contains two contents, which clarify the relevant matters concerning the confirmation of taxable income of personal rental (sublease) housing and taxable income of one-time rent collection.
According to the new regulations, firstly, if an individual rents (sublets) a house and cannot provide legal and accurate proof of the cost and expenses, and cannot accurately calculate the cost and expenses of renting the house, the taxable income shall be verified within the range of 5%- 10% of the rental income. The specific application ratio shall be determined by the municipal tax authorities. The municipal tax authorities refer to all districts and cities (including Dingzhou and xinji city) and xiong'an new area Taxation Bureau.
Second, the rental income of rented (sublet) housing obtained by individuals in the form of one-time rent collection can be shared equally on a monthly basis within the corresponding lease period with a legal and effective lease contract (agreement).
In principle, individuals need to pay more taxes for renting houses, including value-added tax, property tax, personal income tax and urban maintenance and construction tax. However, different provinces and cities will simply levy private rental tax on individual rental housing at a lower comprehensive tax rate.
Regarding the background of this policy, Hebei Provincial Taxation Bureau explained that in order to further standardize the collection and management of individual income tax on individual rental housing, in accordance with State Taxation Administration of The People's Republic of China's general requirements on thoroughly implementing the work of "tax reduction and fee reduction", the housing rental market in Hebei Province will be promoted to develop healthily and a good business environment will be created.
The new regulations will come into force on 20 19 10/0/day.
Insiders pointed out that individual rental housing should indeed pay taxes from the legal point of view, but in the current market, the tax payment ratio is very low, which is less than 1% of the national market. In this case, guiding tax payment should be a long-term process.