Rental Tax for Foreigners - New or just being enforced?

[roddy]

Dalian, back in 2007, wouldn't let you register without a lease that had been stamped by the... taxation? industrial and commercial?... someone or other.

I think there's a lot of confusion here, not least that article linked to that goes on about a foreigner rental tax. Go find me ONE official reference to anything resembling such a thing and you can have 5% of my rent*. On you go.

Also sounds like some police stations have started charging for the registration formalities. I'm not sure if they are allowed to do this, but the figures quoted are ridiculous and it's either official extortion, or unofficial.

And then you have good old agency scams.

*For a month

[Brian US]

Did you have to pay the full year's tax all at once?

Yes, so 5% on the total amount of the lease, which happens to be 12 months of rent. Not sure how they would tax it if it's a longer lease, but my understanding is that it is just yearly.

This was the 5% income tax that the landlord should pay, but as others before mentioned that since the landlord normally wouldn't pay it, it generally leaves you without much leeway. I think this is also why agents just try to convince you it's a foreigner's tax since it's "easier" to explain than to tell you your landlord is trying to evade taxes. However, this generally doesn't affect negotiations that much since the majority do not pay near the full amount. The 5% tax was broken down into a 4.5% tax and a .5% tax, which I'll have to double check from my roommate with the receipt.

The agents telling me the tax is different in each area really mean that they only check that you paid the tax in certain areas. I find it amusing that the place I almost rented had the police officer landlord demand the tax since he wanted to go by the book, but he also quoted a figure less than half of the tax, which leads me to believe he wasn’t going to present the real lease at registration. My current landlord with the first name of ‘Red’ born in 1964 went on about being a true patriot, but when it comes to paying the proper taxes? No way! Then got lectured how things are done differently in China compared to the west.

[icebear]

To add my latest experience - I just registered a new apartment (for me), new 派出所 near Dongzhimen, and was not asked anything about taxes or fees. If anything they were easier than before, as they didn't require a copy of my landlord's ID.

Edit: 北新桥 station

[淨土極樂]

I'd highly encourage everyone NOT to pay landlord's taxes. The country won't change for the better if everyone, including foreigners, takes the corruption as granted.

[roddy]

Given that these things differ by police station, it'd be useful if posters can specify which police station they're talking about in any particular case.

[icebear]

Updated my post above to reflect the station, as requested.

@淨土極樂 In my experience the tax is optional, and those who pay it usually are getting 4-8 times the value of the tax back by being able to to use the fapiao as a personal income tax deduction. I thus don't expect any big changes in payment patterns by foreigners...

[Brian US]

I was told next time I register at the same station, I just need a copy of my lease and the fapiao for the tax. This is in 太阳宫.

[Cat Jones]

I registered at Dongzhimen yesterday. No mention of tax. Same as icebear, landlords ID card copy not required, they just need her ID number.

[Brian US]

As I mentioned before I almost rented a place at Llama Temple (one stop west of Dongzhimen) and landlord requested that I pay the tax to register. He is a police officer and refused to rent me the apartment unless I paid.

[ChTTay]

"Foreigner Tax" paid in Wudaokou. 5% of total value of my 12 month contract. Fapiao states it a landlord rental tax.

From the landlord/Chinese side, the argument is going something like ... "Why should I rent to you and have to pay this tax when I can rent to a Chinese person and pay no tax?"

My friend lives in the same apartment complex and did not have to pay any tax. However, their landlord will only rent to foreigners so we were thinking they just cover the tax and make it back through higher rent or something.

[icebear]

However, their landlord will only rent to foreigners so we were thinking they just cover the tax and make it back through higher rent or something.

This is why the nicer 公寓 don't charge the 5% directly - you are already paying it indirectly via very high rent/management fees.

[Saxondale]

My friend has nearly secured an apartment, but he's just been told there's a foreigner tax he needs to pay (300rmb per month).  Does this actually exist?

 

Thanks!

[roddy]

See here

http://www.chinese-forums.com/index.php?/topic/41193-rental-tax-for-foreigners-new-or-just-being-enforced/

Will merge later, am on mobile.

[Saxondale]

Thanks!

 

i need to improve my searching skills!

[ChTTay]

I just moved out of Wudaokou after living there for 3 years. In both of the apartments I lived in I had to pay the "tax" discussed in this thread.

 

I now live on line 5 in the He Ping Li area and didn't have to pay any kind of "tax" or fee upon registering.

 

In fact, compared to WDK, the whole registration process was so much simplier/easier. In WU you would need your contract, landlord I.D copy, copy of their proof of ownership of the apartment (or whatever that's called), passport and various information like where you work, your employer address, your phone number etc etc. When I went to register I made sure I had all these details but only needed my passport, the contract and my landlords mobile number.