China MOF Releases Preferential Tax Measures for Residential Leasing Companies

The Chinese Ministry of Finance July 26 released Announcement No. 24, explaining preferential tax measures for residential leasing companies. The explanation includes: 1) the option for residential leasing companies to pay a 3.5 percent simplified VAT rate or the general VAT rate; 2) the application of a reduced 1.5 percent VAT rate for VAT prepayments under the simplified regime; 3) the application of a reduced 4 percent property tax rate for large residential leasing companies; 4) construction area thresholds for the application of the measures; and 5) documentation and declaration requirements to claim the preferential tax benefits. [China, Tax Policy ...