According to the Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Revision and Release, if housing rental subsidies are paid to lessors, the subsidies do not belong to VAT taxable income and do not need to pay VAT. Therefore, for the landlord, if the housing rental subsidy is paid directly to them, then there is no need to pay taxes.

Low-rent housing means that the government provides social security housing to families who meet the minimum living standard of urban residents and have housing difficulties by means of rent subsidies or physical distribution.