Attention, the company rents as required, and the tax office zui is focusing on this
01
There's no room for the company
820,000
Infractions:
In 2021, the contract's annual rent was $85,589. 72 and the actual cost charged was $8476,601. 39. The amount received was $33,963. 59. 72. The amount of $50,80241. 67 was not received, resulting in the underpayment of property tax of $30,4814. 50, stamp tax of $2540. 12 and personal income tax of $38,7066. 03, resulting in the total underpayment of taxes of $69,4420. 65。
In 2022, the contract's annual rent was $78,33284. 8 and the actual cost charged was $7,239,118. 13. The amount received was $36,284. 8 and the amount of $36,178,33. 33 was not received, resulting in an underpayment of $21,177. 00 for property tax, $1808. 92 for stamp duty and $27,5644. 44 for personal income tax, resulting in a combined underpayment of $49,4523. 36。
In 2023, the contract's annual rent was $6935,878. 20, the actual cost charged was $69,358. 78. 20, and the amount received was $36,301,116. 80, and the amount not received was $33,055,761. 40, resulting in the underpayment of property tax of $ 198345. 68, stamp tax of $165,288 and personal income tax of $25,1867. 54, resulting in the total underpayment of taxes of $45,866. 10。
Zui was eventually fined $82. 33 million because the company did not comply with the requirements, resulting in the payment of $16,40810. 11 in taxes。
02
Company rents individual houses, no, only contracts and payment certificates
Can you deduct it before taxes
Businesses are confronted with problems that do not exist in rental housing and need to be treated in a differentiated manner:
Scenario one:
In general, business rental expenses are not earned and cannot be deducted before tax, as the rental activity is vat taxable and is required。
Scenario two:
However, special circumstances also permit pre-tax deductions。
1. If an enterprise rents a dwelling belonging to a rental administrative unit, the administrative unit is one that is legally exempt from tax registration. As a result, rental expenses may be deducted either by tax authorities or by means of receipts and internal vouchers, which may not have to be obtained before tax。
2. A company rents a person's house and pays rents not exceeding $500 per month, which may be deducted before tax. Since, in accordance with the terms of circular no. 28, the other party, who is a small and sporadic business, spends in the form of receipts from the tax authorities or internal receipts, which are deducted as pre-tax documents, the receipts shall contain the name of the collection unit, the name of the individual and identification number, the item of expenditure, the amount received, etc。
03
It's for the landlord. Heads up
How do you deduct it
Household names for utilities are landlords and cannot be opened directly to companies. There is a problem of non-subscribement of value added tax (vat) revenue because it is up to the landlord and does not comply with the credit for vat revenue。
However, the cost of utilities paid by the company for renting the house is up to the landlord and can be deducted as a pre-tax deduction for the enterprise income tax。
Under article 19 of the enterprise income tax pre-reduction certificate management scheme, the lessor and the lessee may treat costs such as utilities arising from rental housing in a shared manner!
The increase in the cost of utilities is based on pre-tax deductions by individual landlords: the partition order。
In addition to the above information, the terms of the lease contract also require an agreement on apportionment, which makes the documents more reasonable。
(several single styles)
Note: the partitioning order cannot be used as a credit against vat
04
Individual rental housing
What taxes
Vat personal income tax
The rental income earned by an individual on sub-lease of a dwelling is the income taxable income of the individual and is subject to personal income tax as calculated under the item “property lease”. Personal income tax is levied on the reduction of earnings from individual rental housing by 10 per cent。
In calculating the proceeds of a lease of property, the taxpayer may in turn deduct taxes paid in the course of the lease of property, rent paid to the lessor, the cost of repairing the real expenses of the lease of property borne by the taxpayer, and the deduction of fees under the tax law. Under the personal income tax act, the deduction for the cost of a lease of property is set at a rate of up to $4,000, offset by a fee of $800, or 20 per cent, for each income。
Property tax
In addition, supplementary education fees, local additional education, according to the circular of the ministry of finance of the general state tax administration on the extension of the exemption of government funds (fiscal [2016]) no. 12) provides for exemption if the monthly rent does not exceed $100,000。
Case resolution
At the end of february 2024, matsuko rented a house in jenan city for half a year (1 march 2024) as at 31 august 2024, the contract provided for a lump sum payment of rent totalling $9,000. As a result of the damage to the doors and windows of the house, matsuko paid $300 in march for the repairs and full supporting documentation。
How, then, should matsuko pay taxes for this rental income
(it is known that shandong province reduces property taxes, surcharges, etc. By 50 per cent
1. Value added tax
After six months of rental charges totalling 9,000 yuan, the assessed monthly rental income was 1,500 yuan, not exceeding 100,000 yuan, and vat was exempt from additional taxes。
2. Exemption from stamp duties and urban land use taxes。
3. Property tax
As a result of the exemption from vat, rental income is not deducted from vat, i. E. Monthly property tax is payable: 9,000 ÷6 x 4 per cent x 50 per cent = 30 yuan。
4. Personal income tax
As a result of the one-time rental charge, mr. A. Is required to make a one-time declaration of personal income tax for the following month in which the rent is charged: (9,000-180-300) x (1-20 per cent) x 10 per cent = 681. 6 ($)。
05
What taxes do enterprises pay for rental housing
Value added tax
General provisions
1. Relief provisions
(1) no value added tax shall be applied to rental income earned on the operation of public rental housing. The public rental management unit shall account for the income from the rental of public rental housing separately and shall not benefit from the vat benefit if it does not。
(2) revenue from rental of vacant military property, free of vat。
City building tax and surcharge property tax
General provisions
The tax rate is 12 per cent for enterprises renting housing on the basis of income from rental of property。
Taxable units and individuals who do not rent other units of property pay property tax on the basis of their residual value。
In the case of rental property, the lease contract entered into between the two parties provides for rent-free periods during which the owner pays the property tax in accordance with the original value of the property。
2. Relief provisions
(1) a property tax is levied on enterprises, social groups and other organizations for the rental of housing for personal use at market prices, less the 4 per cent tax rate。
(2) there is a temporary exemption from property tax on publicly owned housing and low-rent housing at a price set by the government, including owner-occupied housing from enterprises and self-supporting establishments to employees; public housing rented from the housing authorities to the inhabitants; private housing, which is subject to private housing policy, and which is rented to the residents at government rent rates。
(3) the duration of the property tax exemption for public rental housing is extended until 31 december 2027。
(4) between 1 january 2021 and 31 december 2027, small vat taxpayers can reduce property tax within 50 per cent of the tax amount。
Urban land use tax
