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VAT 5% → 1.5%!Tax rate updated, Dalian financial outsourcing company calls you to learn!

2021-10-13

Part of the vat has been reduced!Notice from the State Administration of Taxation!In 2021, the VAT rate table is coming. If you don't study, you can't work. Dalian financial outsourcing company calls on you to learn!

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VAT 5% → 1.5%!Property tax 12% → 4%!

VAT rate updated!


The announcement on improving the tax policies related to housing leasing (No. 24, 2021) issued by the Ministry of finance, the State Administration of Taxation, and the Ministry of housing and urban rural development, clearly states that:


1、 The general taxpayers of Housing leasing enterprises can choose to apply the simple tax calculation method to the rental income obtained by renting houses from individuals, and pay the value-added tax according to the 5% collection rate minus 1.5%, or apply the general tax calculation method to calculate and pay the value-added tax.Small scale taxpayers of value-added tax in housing rental enterprises shall pay value-added tax at the rate of 5% minus 1.5%.    

If the housing leasing enterprise applies the above simple tax calculation method to individual rental housing and pays in advance, the value-added tax shall be paid in advance at the rate of 1.5%. 

2、 If enterprises, institutions, social organizations and other organizations rent houses to individuals and specialized large-scale housing rental enterprises, the real estate tax shall be levied at a reduced rate of 4%. 

3、 For the indemnificatory rental housing constructed by using non residential stock land and non residential stock houses (including commercial office buildings and houses rented for living after the transformation of industrial plants), after obtaining the confirmation letter of indemnificatory rental housing project, referring to the tax policies stipulated in the applicable article and Article 2, specifically: the housing rental enterprise rents the above-mentioned indemnificatory rental housing to individuals,In accordance with the VAT policies stipulated in the applicable articles;When enterprises and institutions, social organizations and other organizations rent the above-mentioned indemnificatory rental housing to individuals and specialized large-scale housing rental enterprises, the real estate tax policy stipulated in Article 2 shall apply mutatis mutandis. 

The municipal and County People's Government shall organize relevant departments to jointly review the construction scheme and issue the certificate. 

4、 The term "Housing leasing enterprises" as mentioned in this announcement refers to the enterprises engaged in housing rental business that have made opening reports or filed records with the housing and urban construction departments in accordance with the provisions. 

The standard of the specialized large-scale housing rental enterprise mentioned in this announcement is: the enterprise holds or operates more than 1000 sets (rooms) of rental housing or a building area of 30000 square meters or more in the opening report or filing city.The housing and urban-rural construction departments of all provinces, autonomous regions and municipalities directly under the central government, together with the financial and tax departments at the same level, may, according to the development of the rental market, lower the standards within 50% of the range for their own regions or some cities. 

5、 Local housing and urban and rural construction, tax departments should strengthen information sharing.The municipal and county housing and urban-rural construction departments shall transmit the list of local housing rental enterprises, specialized large-scale housing rental enterprises and indemnificatory rental housing project confirmation letter to the tax authorities at the same level, and publish and dynamically update the list of housing rental enterprises and specialized large-scale housing rental enterprises. The specific contents and sharing realization methods of sharing information shall be provided by the provinces, autonomous regions, and regionsThe housing and Urban-Rural Construction Department of the municipality directly under the central government shall jointly study and determine with the tax department. 

6、 Taxpayers who enjoy the preferential policies stipulated in this announcement shall declare tax reduction or exemption in accordance with the provisions, and keep the real estate ownership, housing lease contract, indemnificatory rental housing project confirmation and other relevant information for future reference. 

7、 This announcement shall be implemented as of October 1, 2021.Article 2 (4) of the notice of the Ministry of Finance and the State Administration of Taxation on low rent housing, affordable housing and housing rental (CS [2008] No. 24) shall be abolished at the same time. 


The tax rate table of value added tax has also changed!

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Tax rate table for 2021


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VAT rate

(1) For taxpayers selling goods, services, leasing services of tangible movables or importing goods, the tax rate shall be 13%, except as otherwise provided in Items 2, 4 and 5 of this article.

(2) The tax rate for taxpayers selling transportation, postal services, basic telecommunications, construction and real estate leasing services, selling real estate, transferring land use rights, and selling or importing the following goods shall be subject to the tax rate of 9%:

1. Food and other agricultural products, edible vegetable oil, edible salt;

2. Tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas and coal products for residents;

3. Books, newspapers, magazines, audio-visual products and electronic publications;

4. Feed, chemical fertilizer, pesticide, agricultural machinery, agricultural film;

5. Other goods specified by the State Council. 

(3) For taxpayers selling services and intangible assets, the tax rate shall be 6%, unless otherwise specified in Items 2 and 5 of this article.

(4) For taxpayers exporting goods, the tax rate is zero;However, unless otherwise stipulated by the State Council.

(5) For cross-border sales of services and intangible assets stipulated by the State Council by domestic units and individuals, the tax rate is zero.
The adjustment of tax rates shall be decided by the State Council.

If a taxpayer concurrently operates items with different tax rates, the sales amount of the items with different tax rates shall be accounted for separately;If the sales amount is not accounted for separately, the higher tax rate shall apply.

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Below 13% cargo
It is easy to be confused with 9% goods such as agricultural products

1. Quick frozen food, instant noodles, non-staple food and all kinds of cooked food, corn pulp, corn husk, corn fiber (also called spray corn husk) and corn protein powder are processed with grain as raw materials.

2. Canned vegetables.

3. Redried tobacco leaves made by professional redrying plant.

4. The refined tea produced by agricultural producers is refined by screening, wind screening, picking, fragmenting, drying and even stacking. It is sold on the side of tea and tea drinks mixed with various medicines.

5. A variety of canned fruits, preserved fruits, preserved fruits, fried nuts, nuts, ground horticultural plants (such as pepper, pepper powder, etc.).

6. Chinese patent medicine.

7. Sawn timber, canned bamboo shoots.

8. Cooked aquatic products and canned products of various kinds.

9. All kinds of canned meat, cooked meat products.

10. Canned eggs of all kinds.

11. Yogurt, cheese, cream, concocted milk.

12. Wash the wool and fluff.

13. Feed additive.

14. It is a kind of daily health medicine (such as sanitary insecticide, insect repellent, mosquito repellent, mosquito repellent, etc.) used in human daily life.

15. Agricultural and sideline products are used as raw materials for processing industrial products, such as machinery, agricultural vehicles, three wheeled trucks, motorized fishing boats, forest cutting machinery, skidding machinery and agricultural machinery parts.

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VAT collection rate

Small scale VAT taxpayers and ordinary taxpayers who adopt simple tax calculation (see Annex) use the levy rate when calculating tax. At present, there are four levels of value-added tax, namely, 0.5%, 1%, 3% and 5%, which is generally 3%, except as otherwise stipulated by the Ministry of Finance and the State Administration of taxation.

Annex: simple tax calculation for general taxpayers (optional)

(1) 5% levy rate:

1. Value added tax is levied on crude oil and natural gas extracted from Sino foreign cooperative oil (gas) fields at a rate of 5%.(GSF [1994] No. 114)

2. Sale and lease of real estate acquired before April 30, 2016.Provisions on the pilot project of levying value added tax instead of business tax (CS [2016] No. 36 Annex 2)

3. Real estate development enterprises rent and sell old real estate projects developed by themselves.The old real estate project refers to the real estate project whose contract commencement date specified in the construction permit is before April 30, 2016.It includes but is not limited to: the real estate that the general taxpayer in the real estate development enterprise purchases the uncompleted old real estate project and continues to develop the real estate, and then projects and sells the real estate in his own name belongs to the old real estate project.Real estate projects developed by general taxpayers in real estate development enterprises who acquire land and develop through sea reclamation are old real estate projects if the commencement date of reclamation specified in construction engineering construction permit or construction contract of reclamation project is before April 30, 2016.(notice of the State Administration of Taxation No. 31 in 2019, CS [2016] No. 68, CS [2016] No. 36, annex 2, notice of the State Administration of Taxation, No. 2, 2020)

4. Real estate financial leasing contracts signed before April 30, 2016.(CS [2016] No. 47)

5. Financial leasing services provided by real estate acquired before April 30, 2016.(CS [2016] No. 47)

6. Transfer the land use right obtained before April 30, 2016.(CS [2016] No. 47)

7. Providing labor dispatch service and security protection service (including providing armed escort service) choose to pay tax difference.(CS [2016] No. 47, CS [2016] No. 68)

8. Tolls for roads, secondary roads, bridges and Gates started before the pilot project are collected.(CS [2016] No. 47)

9. Provide human resource outsourcing services.(CS [2016] No. 47)

(2) 3% levy rate

1. Sales of self-produced biological products made of microorganisms, microbial metabolites, animal toxins, human or animal blood or tissue.(CS [2009] No. 9, CS [2014] No. 57)

2. Consignment stores sell consignment items (including personal consignment items).(CS [2009] No. 9, CS [2014] No. 57)

3. Pawnbrokers sell pawn goods.(CS [2009] No. 9, CS [2014] No. 57)

4. Sell the power produced by small hydropower units at and below the county level.CS [2009] No. 9, CS [2014] No. 57)

5. Sell self-produced tap water.(CS [2009] No. 9, CS [2014] No. 57)

6. Sales of self-produced construction and production of building materials used for sand, soil, stone.(CS [2009] No. 9, CS [2014] No. 57)

7. Sales of self-produced bricks, tiles and lime (excluding clay solid bricks and tiles) continuously produced by self-produced sand, soil, stone or other minerals.(CS [2009] No. 9, CS [2014] No. 57)

8. Sell self-produced commercial concrete (only for cement concrete produced with cement as raw material).(CS [2009] No. 9, CS [2014] No. 57)

9. Plasma collection stations sell non clinical human blood.(GSH [2009] No. 456, No. 36 of 2014)

10. Pharmaceutical enterprises sell biological products.(notice of the General Administration of the people's Republic of China [2012] No. 20)

11. Photovoltaic power generation project power generation customers sell power products.(Notice No. 32 of 2014)

12. Veterinary pharmaceutical enterprises sell veterinary biological products.(Notice No. 8 of 2016)

13. For the sales of fixed assets that have been used by themselves, if the simple method is applied to levy VAT at the rate of 3% minus 2%, the tax reduction can be abandoned, and VAT shall be paid according to the simple method at the rate of 3%, and a special VAT invoice can be issued.(notice of the General Administration of the people's Republic of China No. 90, 2015)

14. Public transport services.It includes ferry, bus passenger transport, subway, urban light rail, taxi, long-distance passenger transport and shuttle bus.Provisions on the pilot project of levying value added tax instead of business tax (CS [2016] No. 36 Annex 2)

15. The recognized animation enterprises provide services for the development of animation products, as well as the transfer of animation copyright in China.Provisions on the pilot project of levying value added tax instead of business tax (CS [2016] No. 36 Annex 2)

16. Film screening services, warehousing services, loading and unloading services, receiving and dispatching services and cultural and sports services (including the income obtained by taxpayers from operating cableways, ferry cars, battery cars, cruise ships, etc.) in tourist sites.(CS [2016] No. 36 Annex 2, CS [2016] No. 140)

17. Operating lease services provided with tangible movable property obtained before the date of the pilot project of replacing business tax with value-added tax as the subject matter.(CS [2016] No. 36 Annex 2)

18. Tangible movable property leasing contracts that have not been fully executed signed before the date of the pilot project of replacing business tax with value-added tax.(CS [2016] No. 36 Annex 2)

19. Highway management enterprises shall collect vehicle tolls for expressways started before the pilot project.(CS [2016] No. 36 Annex 2)

20. Interest income from agricultural loans provided by the head office of Agricultural Development Bank of China and its branches.(CS [2016] No. 39)

21. Income from financial services provided by rural credit cooperatives, rural banks, rural mutual funds cooperatives, loan companies wholly funded by banking institutions, and legal institutions in rural cooperative banks and rural commercial banks in counties (county-level cities, districts and banners) and areas below the county level.(CS [2016] No. 46)

22. For the county sub branches under the branches of provinces, autonomous regions, municipalities directly under the central government and cities specifically listed in the state plan, and the county sub branches under the branches of Xinjiang production and Construction Corps (also known as county business units), which are included in the reform pilot of the "three rural financial business department", provide interest income from loans to farmers, rural enterprises and various rural organizations.(CS [2016] No. 46)

23. Providing non academic education services.(CS [2016] No. 68)

24. Providing educational support services.(CS [2016] No. 140)

25. R & D and technical services, information technology services, authentication and consulting services provided by ordinary taxpayers in non enterprise units, as well as sales of intangible assets such as technology and copyright.(CS [2016] No. 140)

26. The general taxpayers in non enterprise units provide technology transfer, technology development and related technical consultation and technical services.(CS [2016] No. 140)

27. For the tap water fee charged by the taxpayer who provides property management service from the service recipient, the balance after deducting the water charge paid by the taxpayer to the service recipient shall be regarded as the sales volume, and the value-added tax shall be calculated and paid at a rate of 3% according to the simple tax calculation method.(Notice No. 54 of 2016)

28. Construction services provided by way of contract clearing, for projects supplied by Party A and for old construction projects;Old construction projects refer to:

① Construction projects with the contract commencement date specified in the construction permit before April 30, 2016;

② The construction project whose commencement date indicated in the construction contract is before April 30, 2016 if the construction project construction permit is not obtained;

③ The construction project whose commencement date is not indicated in the construction project construction permit, but the commencement date indicated in the construction contract is before April 30, 2016;(CS [2016] No. 36 Annex 2)

29. When taxpayers sell self-produced goods such as prefabricated houses, machinery and equipment, steel structural parts and other self-produced goods and provide construction and installation services, the sales volume of goods and construction services shall be calculated separately, and different tax rates or levy rates shall be applied respectively.(Notice No. 11, 2017)

30. If the construction general contractor provides engineering services for the foundation, foundation and main structure of the building, and the construction unit purchases or purchases some steel, concrete, masonry materials and prefabricated components by itself, the simple tax calculation method shall be applied.(CS [2017] No. 58)

31. Provide installation services while selling self-made and purchased machinery and equipment. The sales of machinery and equipment and installation services have been separately calculated. The tax of installation services can be calculated according to the simple tax method selected by Party A.(Notice No. 42 of 2018)

32. For the taxable behavior of value-added tax occurred during the operation of asset management products by the asset management product manager, the simple tax calculation method shall be applied temporarily, and the value-added tax shall be paid at the rate of 3%.(CS [2017] No. 56)

33. Since May 1, 2018, general VAT taxpayers who produce, sell, wholesale and retail drugs can choose to pay VAT at a simple rate of 3%.(CS [2018] No.47)

34. From July 1, 2018 to December 31, 2020, the interest income obtained by the county branches under the branches of provinces, autonomous regions, municipalities directly under the central government and cities specifically designated in the state plan of the postal savings bank of China included in the reform of the "three rural financial business department" from July 1, 2018 to December 31, 2020,We can choose to apply the simple tax calculation method to calculate and pay the value-added tax at the rate of 3%.(CS [2018] No. 97)

35. For urban film projection services provided by ordinary taxpayers, they can choose to pay VAT according to the simple tax calculation method according to the existing policies.(CS [2019] No. 17) 36. Since March 1, 2019, general VAT taxpayers who produce, sell, wholesale and retail rare disease drugs can choose to pay VAT at a simple rate of 3%.The above taxpayers choose the simple method to calculate and pay VAT, which shall not be changed within 36 months.(CS [2019] No. 24)

(3) The 3% levy rate is reduced to 2%

1. Taxpayers who have not been included in the pilot project of expanding the scope of VAT deduction before December 31, 2008 sell their used fixed assets purchased or self-made before December 31, 2008.(CS [2008] No. 170, CS [2014] No. 57)

2. Taxpayers who have been included in the pilot project of expanding the scope of VAT deduction before December 31, 2008 sell the fixed assets they have used and purchased or self-made before the pilot project of expanding the scope of VAT deduction in this region.(CS [2008] No. 170, CS [2014] No. 57)

3. Sell the fixed assets that have been used by the company, which are not deductible and have not been deducted from the input tax according to Article 10 of the regulations.(CS [2009] No. 9, CS [2014] No. 57)

4. Taxpayers sell second-hand goods.(CS [2009] No. 9, CS [2014] No. 57)

5. When a taxpayer purchases or self-made fixed assets, he is a small-scale taxpayer and sells the fixed assets after he is identified as a general taxpayer (notice of the State Administration of the people's Republic of China No. 1 in 2012 and No. 36 in 2014 of the State Administration of Taxation)

6. Sales of fixed assets whose input tax can not be deducted according to the regulations in case of taxable behavior of value-added tax collected according to simple methods.(notice of the General Administration of the people's Republic of China No.1 in 2012 and No.36 in 2014)

7. The sales of fixed assets that have been used by themselves and obtained before the date of the pilot project of replacing business tax with value-added tax shall be implemented in accordance with the current VAT policy for second-hand goods.(CS [2016] No. 36 Annex 2)

(4) Reduced by 0.5%

From May 1, 2020 to December 31, 2023, taxpayers engaged in the distribution of second-hand cars sell their purchased second-hand cars. Instead of levying value-added tax at the rate of 3% minus 2%, VAT is levied at the rate of 0.5%, and the sales volume is calculated according to the following formula: sales volume = tax inclusive sales / (1 + 0.5%)(announcement of the Ministry of finance, the State Administration of Taxation, No.7, 2020, and the State Administration of Taxation, No.9, 2020)

(5) 5% less 1.5%

1. The tax payable of rental housing of individual industrial and commercial households and other individuals shall be reduced by 1.5%.(announcement of the State Administration of Taxation, No. 6, 2016)

2. The general taxpayers of Housing leasing enterprises can choose to apply the simple tax calculation method to the rental income obtained by renting houses from individuals, and pay the value-added tax according to the 5% collection rate minus 1.5%, or apply the general tax calculation method to calculate and pay the value-added tax.Small scale taxpayers of value-added tax in housing rental enterprises shall pay value-added tax at the rate of 5% minus 1.5%.(Ministry of finance, State Administration of Taxation, Ministry of housing and urban rural development Announcement No. 24, 2021)

(6) (non optional) simple taxation shall apply:

1. The taxpayers who provide property management services charge the service recipients for tap water charges. The balance after deducting the water charges paid by them is the sales amount. According to the simple tax calculation method, the value-added tax is calculated and paid at a rate of 3%.(Notice No. 54 of 2016)

2. If the construction general contractor provides engineering services for the foundation, foundation and main structure of the building, and the construction unit purchases or purchases some steel, concrete, masonry materials and prefabricated components by itself, the simple tax calculation method shall be applied.(CS [2017] No. 58)

3. For the taxable behavior of value-added tax during the operation of asset management products, the simple tax calculation method shall be applied temporarily, and the value-added tax shall be paid at the rate of 3%.(CS [2017] No. 56)

4. Value added tax is levied on crude oil and natural gas extracted from Sino foreign cooperative oil (gas) fields at a rate of 5%.(GSF [1994] No. 114)

5. Taxpayers selling second-hand goods shall be subject to VAT at a simple rate of 3% by half.(CS [2009] No. 9)

6. If the general taxpayer sells goods in one of the following circumstances, the VAT shall be calculated and paid according to the 3% levy rate temporarily according to the simple method:

(1) Consignment stores sell goods on consignment (including personal consignment items of residents);    

(2) Pawnbrokers sell pawn goods.



1、 The general taxpayers of Housing leasing enterprises can choose to apply the simple tax calculation method to the rental income obtained by renting houses from individuals, and pay the value-added tax according to the 5% collection rate minus 1.5%, or apply the general tax calculation method to calculate and pay the value-added tax.Small scale taxpayers of value-added tax in housing rental enterprises shall pay value-added tax at the rate of 5% minus 1.5%.    



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