From June 2024, every business and individual who rents out their homes will have to pay these taxes!

Recently, Uncle Cai saw a case on the Internet: The boss rented a villa for employees as a dormitory! What a bonus!

After a detailed visit by the tax inspectors, it was found that the villa was rented to the company's employees by the legal representative Wang, and all the original evidence on the surface, including the lease contract and invoices, could not see any mistakes. After investigation, the company listed fictitious villa rents, fictitious villa decoration fees, and inflated wages totaling 4.55 million yuan from 2017 to 2022. I thought that this boss was really so good, he would rather rent a house to pay taxes, but also let the employees live well, it turned out that it was not for the employees to live in his villa, but just an excuse to avoid paying taxes. In response to the problem of illegal enterprises, the inspection bureau shall pay back taxes in accordance with the law and impose penalties on enterprises. If you want to know more about this case, you can click the underlined text below to view:

Renting a villa as a dormitory, why is this company so "luxurious"?

There are also many bosses who have consulted Uncle Cai about whether the property they own can be rented out to the company, but can they live by themselves, which is equivalent to a dormitory? How to pay taxes? Follow Uncle Cai to learn today! 1. If a general taxpayer rents out a house, is the tax rate 9% or 5%? 2. What taxes do companies and individuals have to pay for renting houses?

Do you know all of the above? Hurry up and follow Uncle Cai to see ......

The tax bureau is clear!

Corporate rental housing at this rate!

There was such a message in the 12366 tax platform:

Issue:

"The income obtained by the enterprise from renting out the house shall be calculated and paid VAT at the rate of 5% according to the "modern service - rental service", and the VAT invoice with the tax rate of 5% can be issued? ”

税局回答：

"General taxpayers who provide immovable property operating lease business with a tax rate of 9% and lease out their immovable property acquired before April 30, 2016 can choose to apply the simplified tax calculation method and calculate the tax payable according to the levy rate of 5%.

If a unit rents out immovable property (excluding housing rented by individual industrial and commercial households), the tax payable shall be calculated according to the levy rate of 5%. ”

Through the answer of the tax bureau, it is summarized as follows:

1. The VAT rate of 9% is applicable to the general taxpayer rental house only if the general tax calculation method is selected.

2. General taxpayers who lease out the immovable property acquired before April 30, 2016 can choose to apply the simplified tax calculation method and calculate the tax payable according to the levy rate of 5%.

3. If a general taxpayer subleases the immovable property leased before April 30, 2016, he or she can choose a simplified method for taxation; If the immovable property leased after May 1 is subleased, the simplified method of taxation cannot be chosen.

4. General VAT taxpayers in housing leasing enterprises may choose to apply the simplified tax calculation method to calculate and pay VAT at the rate of 5% minus 1.5% for all rental income obtained by renting out housing to individuals.

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What taxes do businesses have to pay on renting out their homes?

1. Value-added tax

1. General provisions

Note: From January 1, 2023 to December 31, 2027, small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (inclusive) will be exempted from VAT. Policy basis: Announcement of the Ministry of Finance and the State Administration of Taxation on the VAT Reduction and Exemption Policy for Small-scale VAT Taxpayers (No. 19 [2023])

2. Exemption and exemption provisions

(1) Rental income from the operation of public rental housing is exempt from VAT. The public rental housing management unit shall separately calculate the rental income of public rental housing, and if it is not separately calculated, it shall not enjoy the preferential policy of VAT exemption.

(2) The income from the rental of vacant real estate in the army is exempt from VAT.

2. Urban construction tax and additional tax

3. Property tax

1. General provisions

If an enterprise rents out a house, the rental income of the property shall be used as the basis for calculating the real estate tax, and the tax rate shall be 12%.

Taxable units and individuals who use the real estate of other units without rent shall pay the real estate tax on behalf of the residual value of the real estate.

For leased properties, if the lease contract signed by the two parties stipulates that there is a period of rent exemption, the property owner shall pay the property tax according to the original value of the property during the rent exemption period.

2. Exemption and exemption provisions

(1) Real estate tax shall be levied at a reduced rate of 4% for enterprises and institutions, social organizations and other organizations renting housing to individuals for residential use at market prices.

(2) Public housing and low-rent housing rented at prices set by the government, including self-owned housing rented to employees by enterprises and self-supporting institutions; public housing rented out to residents by the housing management department; In the implementation of the private housing policy, private housing that is rented to residents with property rights and rented to residents at the rent standard set by the government shall be temporarily exempted from real estate tax.

(3) The preferential period of property tax exemption for public rental housing has been extended to December 31, 2023.

(4) From January 1, 2021 to December 31, 2024, small-scale VAT taxpayers can reduce property tax within the range of 50% of the tax amount.

4. Urban land use tax

5. Stamp duty

What taxes do individuals have to pay on renting out their homes?

Uncle Cai answers the previous question here: Is it okay for the boss of the company to rent out his house to the company, but live in it as a dormitory?

Uncle Cai thinks that it is possible, but the rent requirement is the local market price, and the boss invoices the company, and the taxes that should be paid must be paid, and the company must have a relevant welfare system, and the related expenses are included in the welfare expenses. The welfare expenses shall be included in the total welfare expenses, and the part of the total welfare expenses exceeding 14% of the total salary shall not be deducted before tax when the final settlement is settled.

Next, let's learn together what taxes should be paid for individual rental housing!

1. Value-added tax

2. Individual income tax

The rental income obtained by an individual from subleasing a rented house is a taxable income of individual income tax, and individual income tax shall be calculated and paid according to the item of "income from property lease". Individual income tax shall be levied at a reduced rate of 10% on the income obtained by individuals from renting out housing.

When calculating the income from property lease, the taxpayer may deduct the taxes and fees paid in the process of property leasing, the rent paid to the lessor, the repair costs of the leased property actually incurred by the taxpayer, and the deduction standard for expenses stipulated in the tax law. According to the provisions of the Individual Income Tax Law, the deduction standard for expenses derived from property leasing is: if the income does not exceed 4,000 yuan each time, the deduction fee is 800 yuan; If it is more than 4,000 yuan, 20% of the fee will be deducted.

3. Property tax

In addition, in terms of education surcharge and local education surcharge, according to the notice of the Ministry of Finance and the State Administration of Taxation on expanding the scope of exemption of relevant government funds (CS [2016] No. 12), if the monthly rent does not exceed 100,000 yuan, it will be exempted.

【Case Analysis】

At the end of February 2023, Xiao B rented a house located in Jinan City to Xiao A for a lease period of half a year (March 1, 2023 ~ August 31, 2023), and the contract agreed to take the form of one-time payment of rent, with a total rent of 9,000 yuan. Due to damage to the doors and windows of the house, in March, Xiao B paid 300 yuan for repairs, and the payment vouchers were complete.

So, how should Xiao B pay taxes on this rental income?

(It is known that Shandong Province will reduce real estate tax and additional taxes by 50%).) )

1. Value-added tax

Small B collects a total of 9,000 yuan in half-year rent, and the monthly rental income after apportionment is 1,500 yuan, which does not exceed 100,000 yuan, and can be exempted from paying value-added tax, and then exempted from additional taxes.

2. Exemption from stamp duty and urban land use tax.

3. Property tax

Due to the exemption from VAT, when determining the basis of property tax, the rental income is not deducted from the VAT amount, that is, the monthly property tax payable: 9000÷6×4%×50% = 30 (yuan).

4. Individual income tax

Due to the one-time collection of rent, Mr. A should declare and pay individual income tax in a lump sum in the next month after the rent is collected: (9000-180-300) × (1-20%)× 10% = 681.6 (yuan).

Summary of taxes and fees related to house sales, gifts, etc

This article was originally compiled and published by Uncle Cai's tax classroom, and the material sources are: Uncle Cai's tax classroom, Liu Sange, China Tax News, Mei Song's tax, and Sancai Butler. The content is for the purpose of learning and communication only. The copyright of the article belongs to the original author. If there is anything wrong, please contact us to delete it.

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