How does public rental housing exempt from property tax? The announcement on preferential tax policies for public rental housing (hereinafter referred to as the announcement) released on the Ministry of finance's website on the 9th makes it clear that the land used during the construction period of public rental housing and the land occupied after the completion of public rental housing shall be exempted from urban land use tax, and the real estate tax shall be exempted for public rental housing. The implementation period is from January 1, 2019 to December 31, 2020.
According to the announcement, in order to continue to support the construction and operation of public rental housing (hereinafter referred to as public rental housing), the relevant preferential tax policies are announced as follows:
1、 The land used during the construction period of public rental housing and the land occupied after the completion of public rental housing shall be exempted from urban land use tax. In other housing projects, the construction of public rental housing is exempted from the urban land use tax involved in the construction and management of public rental housing according to the proportion of the construction area of public rental housing in the total construction area.
2、 The operation and management units of public rental housing shall be exempted from the stamp duty involved in the construction and management of public rental housing. In other housing projects, the construction of public rental housing is exempted from the stamp duty involved in the construction and management of public rental housing according to the proportion of the construction area of public rental housing in the total construction area.
3、 For the public rental housing management unit to purchase housing as public rental housing, the deed tax and stamp tax shall be exempted; for the public rental housing leasing parties, the stamp tax involved in signing the lease agreement shall be exempted.
4、 Enterprises and institutions, social organizations and other organizations that transfer old houses as public rental housing sources, and the value-added amount does not exceed 20% of the amount of deduction items, are exempt from land value-added tax.
5、 If enterprises, institutions, social organizations and other organizations donate housing as public rental housing, which complies with the provisions of tax laws and regulations, the part of public welfare donation expenditure within 12% of the total annual profit is allowed to be deducted in the calculation of taxable income, and the part exceeding 12% of the total annual profit is allowed to be deducted in the calculation of taxable income within three years after carrying forward.
If an individual donates a house as a public rental house and meets the tax laws and regulations, the part of the public welfare donation expenditure that does not exceed 30% of the declared taxable income shall be allowed to be deducted from the taxable income.
6、 For urban housing security families that meet the conditions stipulated by the local government, the housing rental subsidies received from the local government shall be exempted from individual income tax.
7、 Public rental housing is exempt from property tax. The rental income from the operation of public rental housing shall be exempted from value-added tax. Public rental housing management units shall separately calculate the rental income of public rental housing, and those who have not separately calculated shall not enjoy the preferential policies of exemption from value-added tax and property tax.
The announcement also stipulates that the public rental housing enjoying the above preferential tax policies refers to the public rental housing development plans and annual plans approved by the people's governments of provinces, autonomous regions, municipalities directly under the central government, cities with separate planning and Xinjiang production and Construction Corps, or the construction (fund raising) approved by the people's governments of cities and counties, which shall be implemented in accordance with the guiding opinions on accelerating the development of public rental housing (Jian Bao [2010] No. 87) and Public rental housing managed by specific administrative measures formulated by municipal and County People's governments.
In addition, the announcement points out that taxpayers who enjoy the preferential policies stipulated in this announcement should declare tax exemption according to the regulations, and keep the real estate ownership certificate, relevant materials containing the original value of the real estate, relevant materials included in public rental housing and land use management, relevant materials for supporting construction management of public rental housing, relevant materials for purchasing housing as public rental housing, and public rental housing lease agreement for future reference.