Legal analysis: Small-scale taxpayers apply levy rates, not tax rates. Under normal circumstances, a 3% tax rate is applicable to small-scale taxpayers, but for some special projects in the business tax-to-VAT pilot program, a 5% tax rate is applicable. 1. Article 12 of the revised "Provisional Regulations of the People's Republic of China on Value-Added Tax" stipulates that the value-added tax collection rate for small-scale taxpayers is 3%. 2. "Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Launching the Pilot Program of Replacing Business Tax with Value-Added Tax" and "Implementation Measures for the Pilot Program of Replacing Business Tax with Value-Added Tax": Article 16 The VAT collection rate is 3%. The Ministry of Finance and the State Administration of Taxation Unless otherwise specified. 3. "Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Launching the Pilot Program of Replacing Business Tax with Value-Added Tax" and "Regulations on Matters Related to the Pilot Program of Replacing Business Tax with Value-Added Tax": Sales of real estate. 4. When a small-scale taxpayer sells real estate acquired (excluding self-built) (excluding houses sold and purchased by individual industrial and commercial households and other personal sold real estate), the real estate purchase shall be deducted from the full price and extra-price expenses obtained. The balance after the original price or the valuation when acquiring the real estate is the sales amount, and the tax payable is calculated at a 5% tax rate. Taxpayers should prepay taxes in the location where the real estate is located in accordance with the above tax calculation method, and then file a tax declaration with the competent tax authority where the institution is located. 5. When a small-scale taxpayer sells its self-built real estate, the total price and extra-price expenses obtained shall be considered as the sales amount, and the tax payable shall be calculated at a levy rate of 5%. Taxpayers should prepay taxes in the location where the real estate is located in accordance with the above tax calculation method, and then file a tax declaration with the competent tax authority where the institution is located. 6. Small-scale taxpayers in real estate development enterprises who sell self-developed real estate projects are taxed at a 5% tax rate. Real estate operating leasing services. When small-scale taxpayers rent out the real estate they acquire (excluding personal rental housing), the tax payable shall be calculated at a levy rate of 5%.

Legal basis: "Implementation Measures for the Pilot Program of Replacing Business Tax with Value-Added Tax": Article 16 The value-added tax collection rate is 3%, unless otherwise specified by the Ministry of Finance and the State Administration of Taxation.