I. Taxation of Rental Income
According to the tax law, the method of tax calculation for individual income tax on rental income is mainly a combination of withholding and annual remittance. Specifically, when the lessor receives rental income every month or every time, he needs to withhold and prepay the tax in accordance with the stipulated tax rate and tax basis; at the end of the year, he will pay the tax according to the actual rental income for the whole year, and will make up for the shortfall.
The tax rate and tax basis of rental income
The tax law stipulates that the tax rate of rental income varies according to different income levels. Generally speaking, rental income is taxed at a certain percentage rate after deducting relevant expenses. Meanwhile, the tax law also stipulates the method of determining the tax basis, including the recognition of rental income and the deduction of related expenses.
Third, the declaration and payment of personal income tax on rental income
After obtaining rental income, an individual needs to declare and pay the tax in accordance with the time points stipulated in the tax law. Generally speaking, the lessor needs to submit the relevant declaration information and pay the withholding and prepayment tax to the tax authorities within the prescribed period after obtaining the rental income every month or every time. At the end of the year, remittance is also required to ensure the accurate payment of tax for the whole year.
Fourth, notes
In the declaration and payment of individual income tax on rental income, individuals need to pay attention to the following matters: first, to ensure the authenticity and completeness of the declaration information, to avoid omission, misreporting and so on; second, to pay attention to the latest changes in the tax law provisions, to understand and adapt to the new tax policy in a timely manner; and lastly, to keep the relevant vouchers and information in a safe place, so that the tax authorities can check and verify. Lastly, you should keep the relevant documents and information properly for inspection by the tax authorities.
In summary:
Personal Income Tax on Rental Income is a tax levied on the income obtained by an individual from renting out a house or other property. After obtaining rental income, individuals need to declare and pay the tax in accordance with the tax method, tax rate and tax basis stipulated in the tax law. In the process of declaration and payment, individuals need to pay attention to relevant matters to ensure the accurate payment of tax.
Legal basis:
The Individual Income Tax Law of the People's Republic of China
Article 2 stipulates:
The following individual incomes shall be subject to the Individual Income Tax:
(1) Income from wages and salaries;
(2) Income from remuneration for labor;
(3) Income from manuscripts;
(4) Income from licensing and royalty payments. p>(iv) royalty income;
(v) business income;
(vi) interest, dividend and bonus income;
(vii) property rental income;
(viii) property transfer income;
(ix) incidental income.
Resident individuals obtaining income from the first to the fourth items of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax on a consolidated basis according to the taxable year, while non-resident individuals obtaining income from the first to the fourth items of the preceding paragraph shall calculate individual income tax on a monthly basis or on a sub-item basis. Taxpayers obtaining income from the fifth to ninth items of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this Law.
Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China
Article 6 of the Regulations stipulates:
Scope of individual income under the Individual Income Tax Law:
(1) Income from wages and salaries refers to the wages, salaries, bonuses, end-of-the-year raises, bonuses, allowances and subsidies and other incomes related to the employment of an individual. employment-related income.
(2) Income from remuneration for labor services refers to the income derived by an individual from performing labor services, including design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, translation, reviewing, painting, calligraphy, sculpture, film, television, sound recording, video recording, performance, acting, advertising, exhibition, technical services, referral services, brokering services, agency services, and other income derived from labor services. income.
(3) Income from remuneration for manuscripts refers to the income obtained by an individual from the publication of his or her work in the form of books, newspapers or magazines.
(4) Royalty income refers to the income derived from the provision of the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises; the income derived from the provision of the right to use copyrights is not included in the income from manuscripts.
(5) Business income refers to:
1. Income derived from production and business activities of individual industrial and commercial households, and income derived from the production and business activities of sole proprietorships and partnerships registered within the country by investors of sole proprietorships and partners of partnerships;
2. Income derived from the running of schools, medical treatment, counseling, and other remunerated services;
3. Income derived from the provision of patent rights, trademark rights, copyrights, non-patented technologies, and other franchises; income derived from the provision of the right to use copyrights is not included in the income from manuscripts. Income from contracting, leasing, subcontracting and subletting to enterprises and institutions;
4. Income from other production and business activities.
(6) interest, dividend and bonus income, refers to the interest, dividend and bonus income obtained by an individual who owns debt, equity and so on.
(7) Income from property leasing refers to the income obtained by an individual from the leasing of real estate, machinery and equipment, vehicles and vessels, and other property.
(h) Income from property transfer refers to the income derived from the transfer of securities, equity, shares in partnerships, real estate, machinery and equipment, vehicles and vessels, and other property.
(ix) Incidental income refers to income from winning prizes, jackpots, lotteries and other incidental income.
If it is difficult to define the taxable income items of the income obtained by an individual, the competent tax authorities of the State Council shall determine them.