Value-added tax rate of house lease

The value-added tax rate of housing rental depends on the specific circumstances of the items deducted before income tax, which is generally 5% or 3%. Reducing tax burden can be achieved through reasonable tax planning and compliance with tax laws.

According to the "People's Republic of China (PRC) Value-added Tax Law" and relevant laws and regulations, the value-added tax of house rental should be calculated according to the items deducted before income tax. Among them, if the rental income is generated, the tax rate is 5%; If the house does not need to pay the management fee of the agent of the VAT professional company, and the house is rented for more than 12 months, the tax rate can be applied to 3%. However, it should be noted that if there is no clear distinction between house rent and property service fee, then this part of property service fee should also be taxed according to the rent amount. In addition, if the lessor is an individual, it is also necessary to confirm whether it is necessary to pay personal income tax to ensure the fulfillment of tax obligations. For the lessor, in order to reduce the tax burden, some reasonable tax planning measures can be taken, such as setting up a suitable tax structure, reasonably carrying out house leasing and undertaking projects. Abiding by tax laws is also an important way to avoid unnecessary tax risks. For example, timely payment of tax payable, reasonable expenses and good tax records.

How to declare and pay the value-added tax on rental housing? To declare and pay the value-added tax on house rental, the relevant statements shall be submitted to the local tax authorities within the prescribed time limit and the corresponding taxes shall be paid. Specific payment methods and procedures can be consulted with local tax authorities or accounting firms.

For lessors, it is an effective way to improve tax compliance and reduce tax risks by understanding the VAT rate and related regulations, paying attention to tax obligations, strengthening tax planning and reasonably observing tax laws.

Legal basis:

Article 38 of the Value-added Tax Law of People's Republic of China (PRC), taxpayers shall, in accordance with laws, administrative regulations and the provisions of the tax authorities, record and keep tax-related accounting vouchers, original vouchers and other tax-related materials, and submit tax returns, distribution forms and other materials to the tax authorities within the prescribed time limit.