Can renting out unused warehouses be taxed on a simplified basis

After the camp change, if it is a fixed asset before May 1, 2016, it can be taxed at a simplified rate of 5%, and after that it is calculated at a rate of 11% to pay VAT. In the case of tangible movable assets after May 1 rent is taxed at a rate of 17 percent.

The Circular of the Ministry of Finance and State Administration of Taxation on the Policy of Applying Low VAT Rates and Simplified Methods of VAT Collection on Some Goods (Cai Shui [2009] No. 9) stipulates that the following preferential policies on the collection of VAT under the simplified method will continue to be enforced as of January 1, 2009, and that no deduction of input tax will be allowed:

(1) The taxpayers' sales of their own used goods will be implemented in accordance with the following policies:

(2) The taxpayers will be required to pay VAT at the following rates The following policies shall be implemented:

1. General taxpayers selling their own used fixed assets which are non-deductible and without input tax credit as stipulated in Article 10 of the Regulations shall be subject to a 50% reduction of VAT at the 4% levy rate under the simplified method.

General taxpayers selling other fixed assets used by themselves shall be executed in accordance with the provisions of Article 4 of the Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning the Nationwide Implementation of the Transformation and Reform of Value-added Tax (Cai Shui [2008] No. 170).

General taxpayers selling items other than fixed assets used by themselves shall levy VAT at the applicable rate.

2. Small taxpayers (except other individuals, the same hereinafter) selling their own used fixed assets shall levy VAT at a reduced rate of 2%.

Small-scale taxpayers selling their own used items other than fixed assets shall be subject to VAT at a levy rate of 3%.

(2) Taxpayers selling used goods shall levy VAT at a reduced rate of 2% in accordance with the simplified method at the 3% levy rate.

The so-called used goods refer to the goods with partial use value (including old cars, old motorcycles and old yachts) that enter into secondary circulation, but do not include the goods used by oneself.

Materials to be provided by general VAT taxpayers for filing under the simplified method

1. Written (printed) application for enterprises to apply the simplified method of levy (the application includes: detailed description of raw materials and production process for the production of the said goods);

2. Copy of the Business License of Enterprises (photocopy);

3. General VAT Taxpayer Qualification Certificate" (copy);

4, the relevant departments to approve the qualification certificates of enterprises to produce products or product inspection reports (copy).

5. Enterprises shall fill out the Filing Form for Application for Simplified Method of Collection of VAT for General Taxpayers in duplicate.

Legal Basis: The People's Republic of China*** and National Code

Article 707 The lease term of six months or more shall be in writing. The parties did not use the written form, it is impossible to determine Article 707 of the lease term of more than six months, shall be in writing. If the parties fail to adopt written form and cannot determine the term of the lease, the lease shall be deemed to be of indefinite duration. If the term of the lease can not be determined, it shall be regarded as an indefinite lease.

Article 710 The lessee uses the leased property in accordance with the agreed method or according to the nature of the leased property, resulting in the leased property suffers wear and tear, shall not be liable for compensation.

Article 715 The lessee, with the consent of the lessor, may improve the leased property or add other things. Without the consent of the lessor, the lessee to improve the leased property or add other things, the lessor may request the lessee to restore the original state or compensate for the loss.