Is it taxable to hand over the house of a public institution to a property company for management and rental?

The institution entrusts its own wholly-owned property management company to manage and rent the house. Property management companies collect and manage houses according to rents, and then hand them over to institutions. Do property management companies and rental agencies need to pay relevant taxes on the money collected? Property companies rent houses and pay business tax. Is the property tax and land use tax paid by institutions or property companies?

Answer: 1. According to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Business Tax Related to Charges by Property Management Enterprises (Guo Shui Fa [1998] No.217), "Property management enterprises collect water, electricity, gas (coal), maintenance funds and rent on behalf of relevant departments, which belongs to the" service "tax item of business tax. ……"

2. According to Article 3 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Several Policy Issues concerning Business Tax (Caishui [2003] 16), "…… (19) The turnover of the unit engaged in property management is the balance of all income related to property management minus the water, electricity and gas paid by the owner and the water, electricity and gas paid by the lessee. ……"

As for the situation you mentioned, if you entrust a property management company to rent a house for a public institution, the public institution has to pay relevant taxes (business tax and surcharges, land use tax, property tax, corporate income tax, stamp duty, etc.). ), the property management company will pay business tax and other related taxes according to the "agency industry" in the "service industry".