The rental invoice tax rate is 1 1%. This tax rate is applicable to land lease, which was set with the policy of changing business tax to value-added tax implemented in May 20 16. No matter whether the land is leased or sold, the income is taxed. Before the reform of the camp, the taxes to be paid for land transfer fees included business tax, property tax and personal income tax. However, since 20 16, the land lease tax rate has been uniformly adjusted to 1 1%, which simplifies the tax payment process and may also affect the tax burden level of the land lease market.

Tax management of leasing industry;

1. tax registration: the leasing enterprise needs to register with the tax authorities and obtain a tax registration certificate;

2. Invoice management: enterprises must use invoices designated by tax authorities and issue invoices according to regulations;

3. Tax rate application: according to the provisions of the national tax law, choose the applicable tax rate to pay taxes;

4. Tax declaration: enterprises need to declare taxes to the tax authorities regularly, including value-added tax and enterprise income tax;

5. Preferential tax policies: The leasing company should know whether there are applicable preferential tax policies;

6. Tax inspection: Enterprises should cooperate with the tax inspection of tax authorities to ensure tax compliance.

To sum up, since the implementation of the policy of changing 20 1 1% business tax to value-added tax in May, the tax rate of land lease has been uniformly set, which not only simplifies the tax process, but also merges various taxes including business tax, property tax and personal income tax, which has had a certain impact on the tax burden level of the land lease market.

Legal basis:

Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax

first

Units and individuals selling goods or processing, repair and replacement services (hereinafter referred to as services), services, intangible assets, real estate and imported goods within the territory of People's Republic of China (PRC) are taxpayers of value-added tax and shall pay value-added tax in accordance with these regulations.

Article 15 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on comprehensively promoting the pilot reform of business tax to VAT.

VAT rate: (1) Taxpayers engaged in taxable activities, the tax rate is 6%, except as stipulated in Items (2), (3) and (4) of this article.

(2) Providing transportation, postal services, basic telecommunications, construction and real estate leasing services, selling real estate and transferring land use rights at the tax rate of 1 1%.

(3) Providing tangible movable property leasing services at the tax rate of 17%.

(4) Cross-border taxable acts of domestic units and individuals, with a tax rate of zero. The specific scope shall be stipulated separately by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China.