How do property companies pay taxes on subletting houses?

Legal analysis: business tax. According to the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Printing and Distributing Notes on Business Tax Items (Trial Draft) (Guo Shui Fa [1993] 149), the sublease income obtained by the company is: "Lease refers to the business of transferring houses, houses, articles, equipment or facilities to others for use within the agreed time." . At the same time, Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Several Issues Concerning Business Tax (Guo Shui Fa [1995] No.76): "The act of subletting leased houses, articles and equipment by units and individuals to others is also a leasing act, and business tax should be levied according to the' leasing industry' item in the tax item of' service industry'." . On the tax basis, according to Article 5 of the Provisional Regulations of the People's Republic of China on Business Tax: "The turnover of taxpayers provides taxable services for taxpayers, transfers intangible assets or sells real estate, and all the price and extra-price expenses charged to the other party." Therefore, if an enterprise sublets the rented factory, it shall pay the business tax in full according to the rental income, and cannot deduct the rental cost. The applicable tax rate varies according to the purpose of the rented house: for residential houses rented at market prices, the payable business tax is levied at a reduced rate of 3%; The tax rate for non-residential houses rented at market price is 5%.

Legal basis: People's Republic of China (PRC) Tax Collection and Management Law.

Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.

Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.

Article 3 The collection, suspension, reduction, exemption, refund and supplementary payment of taxes shall be carried out in accordance with the law. Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council.

No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.

Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers.

Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.