01 What is rental invoice ?
-For owner: Rent should be taxed as part of owner’s income
-For tenants: It is the proof in accounting, and the evidence to apply for rent
02 Preparations
1. Scan or take pictures of :
– Owner’s property ownership certificate and ID card
– Tenant’s ID card or passport
2. Bring:
– The original and copy of owner’s ID card and property ownership certificate
– Copy of tenant’s ID card or passport (no need if the contract is signed in the name of company or school, and with official stamp on contract)
– The original and copy of lease contract
3. The landlord must be at the present and show original ID card and property ownership certificate
4. Fill in the invoice application sheet, different cities and districts have different sheets, remember to have the right one.
5. Pay taxes with bank card, the balance in Alipay and Wechat and cash are not allowed.
Our agency starts the preparations one and a half months in advance, to make sure there is enough time for company to check.
03 Four key elements
– Rent
– The beginning and the end date of the contract
– How often to make out an invoice (e.g. monthly or every 3 months)
– The invoice title (individual and company)
04 Tips
1. Changing or skipping days are not allowed
e.g. If the contract is within 2021.1.1-2021.12.31, at the first time you hace the invoice from 2021.1.1 to 2021.3.31. Then the next invoice period must start at 2021.4.1.
2. The money and the invoice title cannot be changed randomly
e.g. If the invoice title is personal name, it cannot be changed into the company name in next period
3. Different companies and schools have special invoice regulations; you’d better confirm all details with the people in charge of related things.
4. If the invoice has mistakes and cannot be used to apply for the rent, there are two normal solutions: 1. tax refund or re-apply for invoice from tax bureau. The former one has more complicated process but minimized loss; the later one means you must pay double tax.
5. If there are more than one tenants from the same company or school, make sure if the invoice in the one person’s name with total rent; or the invoice in every tenant’s name wirh separated rent.
P.S. Tax rate in Suzhou is 2.5% now, that means ¥10,000 monthly rent would be taxed ¥250. It changes according to local government rules and regulations.