Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting Taxation Policies of Housing Rent Market

Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting Taxation Policies of Housing Rent Market

Cai Shui Zi [2000] No. 125

December 7, 2000

The financial departments (bureaus), the national taxation bureaus and the local tax bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state planning, Xinjiang Production and Construction Crops:

Approved by the State Council, the relevant questions on taxation policies of housing rent market are hereby notified as follows with a view to coordinating the reform of state housing policies and supporting the sound development of the housing rent market.

Article 1 Public houses and low-rented houses rented in accordance with the state fixed price, including the owned houses that are leased to their own employees by enterprises and self-income and self-expenditure institutions, the public houses leased to residents by the housing department, and private houses of which the property has been turned to each household in the course of the implementation of private housing policies as well as that are leased to the residents in accordance with the state fixed price, are exempt from housing tax and business tax.

Article 2 As regards private residential houses leased according to the market price, the business tax shall be levied at a reduced business tax rate of 3%, and the housing tax at a reduced housing tax rate of 4%.

Article 3 As regards the individual income derived by from the lease of private houses, the individual income tax shall be levied at a reduced tax rate of 10%.

This Circular shall be implemented as of January 1, 2001.
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