Attention landlords! If the tenant is not eligible for rent subsidy, he may not be able to apply for the tax exemption for public lessors.

Landlords should note that renting out residences to tenants who receive government rent subsidies can enjoy tax incentives for public lessors. However, if the tenant does not qualify for rent subsidies, the landlord may not be able to apply for tax exemption on rental income. The Central District Taxation Bureau of the Ministry of Finance reminds homeowners that before signing a lease and filing a comprehensive income tax return, they should first confirm the qualifications of the lessee to avoid mis-listing of tax exemptions and incurring back taxes.

According to Article 15 of the "Residential Law", when a public lessor rents a residence to a lessee who receives a government rental subsidy for living use, the rental income obtained during the rental period can enjoy a comprehensive income tax exemption, but the monthly rental income tax exemption limit for each house is limited to 15,000 yuan.

The Central District Taxation Bureau stated that the public welfare lessor system mainly encourages homeowners to rent their residences to people who qualify for rent subsidies, increases the supply of rental housing through tax incentives, and helps alleviate the housing pressure of disadvantaged and low-income people.

However, this tax discount is not applicable to all rental housing. The key lies in whether the tenant qualifies for the rental subsidy. If the tenant is not eligible to apply for rent subsidies, the rental income obtained by the owner will not be subject to the tax exemption regulations for public lessors.

The Central District State Taxation Bureau pointed out that when accepting review cases recently, it was discovered that some homeowners failed to confirm whether the lessee had obtained the rental subsidy qualification approved by the competent authority, and reported the rental income tax exemption amount of the public lessor when handling the comprehensive income tax settlement declaration.

After an inspection by the National Taxation Bureau, it was found that the lessee rented the house for business use and was not eligible for rent subsidies. Therefore, the owner was unable to apply for the rent tax exemption for public lessors, and was ultimately denied the right to report the tax exemption and pay back the tax.

The IRS reminds that when renting out a residence, homeowners should not only confirm whether the tenant needs rent subsidies, but also confirm whether they meet the relevant qualifications, and pay attention to the tenant's rental subsidy status before signing a lease and filing income tax returns, so as to ensure their own rights to preferential rents and taxes.