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How to Get Preferential Policies Related to "Rent-free and Tax Reduction"
2020-09-04

How can lessors who are rent-free for small and micro enterprises and individual industrial and commercial households in the service industry get the relevant preferential policies of "rent-free and tax reduction"? The relevant person in charge of the Municipal Tax Bureau answered this question. Taxpayers can call 12366 for advice if they have any questions.

 

Q: Which taxpayers can get the "two taxes on housing and land" reduction policy?

 

A: Lessor (excluding natural person) who is exempted from rent for more than one month (including one month) in 2020 for small and micro enterprises and individual industrial and commercial households (regardless of industry) engaged in service industry can enjoy the "two taxes on housing and soil" reduction policy. Among them, the definition criteria for "service industry" and "small and micro enterprises" are as follows:

 

The definition standard of service industry is that for small and micro enterprises engaged in service industry, the total sales amount obtained by providing taxable services accounts for more than 50% of the total sales amount (calculated on the basis of 2019 sales amount, excluding this amount).

 

For small and micro enterprises newly established after January 1, 2020, if there is sales in this year, the total sales from the first quarter to the fourth quarter of this year shall be calculated according to the above method. Among them, when declaring tax reduction and exemption for the second and third quarters of 2020 in October 2020, the total sales volume from the first quarter to the third quarter of 2020 shall be calculated. When reporting tax reduction and exemption for the fourth quarter of 2020 in January 2021, the total sales from the first quarter to the fourth quarter of 2020 shall be used. If there is no sales volume, it shall be judged temporarily according to the taxpayer's business scope.

 

The specific scope of the above service industry shall be implemented in accordance with the Notes on Sales Services, Intangible Assets and Real Estate (Caishui [2016] No.36), specifically including transportation services, postal services, telecommunications services, construction services, financial services, modern services and living services.

 

Whether it meets the standards for small and micro enterprises can be found in the "Liaoning Small and Micro Enterprises Directory System" (website http://xwqy.lngs.gov.cn).

 

Q: When a company signed a house lease contract with the tenant in August 2020, it reduced half of the rent for the individual industrial and commercial households leasing the house for that month. Can it get the "two taxes on house and land" reduction policy?

 

A: No. Lessor who must be exempted from rent for more than one month (including one month) in 2020 can enjoy the "two taxes on housing and soil" reduction policy. If the rent reduction period is less than one month or the rent reduction amount is less than the whole month rent, they cannot enjoy the preferential policy.

 

Q: Company a has two sets of properties, A and B, to be leased to individual businesses. The lease period is from February 1, 2019 to January 31, 2021. The rent will be paid annually. When the rent is collected again in February 2020, considering the impact of the epidemic, the tenant will be exempted from the rent for the current month. B the property is not exempt from rent. When Company a declared the "two taxes on housing and land" in the first quarter in April 2020, it already enjoyed the preferential policy of "enterprises renting houses, halving the property tax and urban land use tax in the first quarter" stipulated in Article 4 of Da Zheng Fa [2020] No.3. Can the two properties leased by Company a get the "two taxes on housing and land" reduction policy?

 

A: As long as the lessee is exempted from the rent for a certain month in 2020, the "two taxes on housing and soil" for the rental-exempted property from the second quarter to the fourth quarter of 2020 can be halved. In this case, the rent-free A property of Company a can enjoy the "two taxes on housing and land" reduction policy, while the rent-free B property cannot enjoy the "two taxes on housing and land" reduction policy.

 

Q: From January to October 2020, a company leased the real estate to an individual industrial and commercial household. In February, the individual industrial and commercial household was exempted from one month's rent. In November, the company leased the real estate to a large enterprise. Can it enjoy the "two taxes on housing and land" reduction policy?

 

A: For real estate leased to individual industrial and commercial households and exempted from rent for more than one month (including one month) in 2020, the "two taxes on housing and soil" can be reduced during the months from the second quarter to the fourth quarter of 2020. In this case, the Company can enjoy the tax reduction policy of "two taxes on housing and soil" from April to October 2020.

 

Q: The market (shopping mall) rents counters. The lessees are small and micro enterprises and individual industrial and commercial households engaged in the service industry. Can they enjoy the "two taxes on housing and land" reduction policy?

 

Answer: Sign a house lease contract (including counter lease) and pay the property tax according to the rent. From the second quarter to the fourth quarter, the rental part of the "house and land tax" can be halved.