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Shanghai Real estate leasing taxes

The calculation of tax payable (i.e. monthly) on actual income basis is as follows:

1.Business tax: Residential = monthly rent × 5%; Non-Residential = monthly rent × 5.55%

2.Property tax = monthly rent × 12%
(Apply to individual lease for non-residential purpose or corporate lease; Exempted if Individual lease for residential purpose)

3.Land-use tax = land tax/m2/year ÷12/month × occupied area
(land taxes are among RMB1-RMB6 /m2/year) The actual figures are subject to local Tax Bureau.

4.Stamp Duty = monthly rent × 0.001

5.Personal income tax:

1) Monthly rental income ≤RMB 4,000, personal income tax:
(Monthly rental income - related taxes and fees - renovation costs deductibles) × 20%

2) Monthly rental income > RMB 4,000: personal income tax:
(Monthly rental income - related taxes and fees - renovation costs deductibles) × (1-20%) × 20%
Notes:
a) The individual income tax is levied based on 20% of the taxable proceeds from leasing a premise. The taxable leasing proceeds equal to monthly rental income - related taxes and fees - renovation cost deductibles.
b) When monthly taxable leasing proceeds is under RMB 4,000, the deductibles are the sum of taxes, fees, and renovation costs (up to RMB 800 each time); when the taxable leasing proceeds is greater than RMB 4,000, the deductibles are 80% of sum of the relevant taxes, fees, and renovation costs (up to RMB 800 each time). The amount of maximum monthly renovation deductible is RMB 800. If the actual cost is under RMB 800, actual cost is applied; if the actual cost is greater than RMB 800, the amount above 800 can be deducted in the following month in accordance with this principle.

6. If the taxes and fees are borne by the lessee, Actual Rental Income = rental + all taxes and fees payable by the lessee, according to the law.

The above information is for your reference only. Villable.com assumes no responsibility on its accuracy. Its interpretation and/or explanation are subject to local Tax Bureau. It is also subject to revision and modification effected by government from time to time.
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