Hangzhou tax incentives for landlords on rental of real estate

by Nicole Yao, Associate, Corporate Accounting Services, Dezan Shira & Associates, Hangzhou

The integrated tax rate for rental property in Hangzhou has recently been lowered. Starting from May first, the integrated tax, which includes several different categories of tax, is between 12.1-18.2 percent for a Chinese landlord renting private non-residential property for business operations, dependent on rental price. The tax rate for foreign landlords renting property is between 18.1-23.7 percent.

This should in effect, lower rental prices for tenants as the tax imposed on the property owner is lower. The difference in tax rates for Chinese and foreign landlords is due to a city real estate tax of 18 percent being imposed on the foreign landlords.

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This article included in China Briefing Magazine

June 2007: Upgrading Your China Entity

Other articles in this issue: Central China VAT reform by Edward Ma, Manager, Corporate Accounting Services, Dezan Shira & Associates, Beijing Shenyang European Union Economic / Technical Development Zone by Lina Wang, Senior Associate, Business Advisory Services, Dezan Shira & Associates, Dalian Developments along the Yangtze River by Olaf Griese, Senior Business Development Associate, Dezan Shira & Associates, Shanghai Growing importance of an environmental evaluation reports in Guangdong by Rosario Di Maggio, Senior Associate, Dezan Shira & Associates New developments for China's Foreign Trade Companies inside the Yantian and Futian Free Trade Zones and Bonded Logistics Parks by Susan Wang, Senior Associate, Dezan Shira & Associates, Shenzhen