I. Who bears the rental tax
Who should bear the tax on rental housing
With regard to the paying party for the rental tax, we make it clear that the cost should be borne by the lessor. In practice, we will charge renters with property taxes, personal income taxes, urban land use taxes and city maintenance taxes on the basis of gross rental income, and a percentage of the education fee plus local education surcharges。
Article 3 of the provisional property tax ordinance
The property tax is paid on the basis of the residual value of the original property, which is reduced by 10-30 per cent at a time. The specific deductions are determined by the people's governments of the provinces, autonomous regions and municipalities directly under the central government. If the original value of the property is not used as a basis, it is approved by the tax authorities of the place where the property is located with reference to the same type of property. If the property is rented, the income from the rental of the property is the basis for taxing the property。
Article 3 of the personal income tax act
Tax rates for personal income tax:
(i) combined proceeds, with the application of an excess progressive tax rate of 3 to 45 per cent
(ii) five to thirty-five per cent of operating income at an excess progressive tax rate
(iii) interest, dividends, dividends, property lease income, property transfer income and incidental gains, at a rate of 20 per cent。
Ii. What happens when rental tax is not paid on time
The failure to pay rent taxes may have a number of consequences. In the first place, the tax authorities order the payment of a time limit and a five-tenth of the daily arrears. In the case of overdue payments, the tax authorities may take coercive measures, such as seizing, seizing, auctioning goods, goods or other property with a value equivalent to taxable, in order to pay tax on the proceeds of the auction. In serious cases, it may also affect the tax credit ratings of taxpayers and create many inconveniences for their subsequent economic activities, such as limited loans. In addition, criminal liability for offences such as tax evasion is also provided for by law. The landlord should therefore pay the rent tax in full and on time, avoiding unnecessary legal risks and economic losses due to late payment。
Iii. Rent and rental tax payers are landlords or tenants
As a general rule, the renting tax is borne by the landlord. Under the relevant tax regulations, rental housing is taxable and landlords are required to pay taxes such as vat, property tax, etc. In practice, however, the parties may determine the party bearing the tax through contractual agreement. If it is expressly agreed in the contract that the tenant will bear the tax, the tenant will have to pay the tax obligation as agreed. However, such an agreement may not be contrary to the mandatory provisions of the laws and regulations, otherwise the agreement is null and void. In any event, normally the landlord bears the burden of the tax, but the contractual agreement may change the insurer。
With regard to the payment of taxes and fees in the rental of rent, in the case of rentals, the relevant tax is usually paid by the lessor. These taxes include consolidated property tax, personal income tax, urban land use tax, urban maintenance tax, education fee surcharge and local education surcharge, etc., calculated on the basis of rent rates。
