The Ministry of Finance, the State Administration of Taxation issued a notice to further define the reinsurance, real estate leasing and non-academic education and other policies about the change from business tax to value-added tax on June 21.
Among them, the "notice" points out that the general taxpayer of the real estate developer, leasing self - developed real estate of old projects can choose to apply simple tax method, calculated in accordance with the 5% levy tax rate. Taxpayers leasing their own real estate of old projects and their organizations are not located in the same county (city), shall be in accordance with the above-mentioned tax method after the advance payment in the immovable property location to declare to pay the tax in the local tax authorities.
"Notice"says that the general taxpayer of the real estate developer, renting its self-developed real estate project whose location is not in the same county (city) with its organization since the 1 May 2016, should be in accordance with the rate of 3%, after that the advance payment shall be made at the location of the real estate, declaring to pay the tax in the local tax authorities. The small-scale taxpayers of Real estate developer, leasing its self-developed real estate project, is calculated according to 5%. Taxpayers lease its self-developed real estate project and its mechanism is not in the same county (city), should declare to pay the tax in the local tax authorities after the advance payment in the immovable property location.