How do we pay business tax in leasing property？
Taxpayer： excuse me， I am from a foreign company， would you help me to know how to pay business tax on leasing property？
Tax official： I like to do， but it is hard to say in one word. Can you tell me what kind of property your company wants to lease？
Taxpayer： we have not decided it. Is that important for tax？
Tax official： yes， it is the main factor in determining whether your operation is taxable. The leasing of movable property， for example， is taxable provided your company have an establishment within china， and bear relevance to the operation .
Taxpayer： does the establishment mean the representative office？
Tax official： not merely the representative office， it also include the establishment of management and business， the site of assignment and agent.
Taxpayer： I see. What about the leasing of intangible asset？
Tax official： if the intangible asset is used in china， the leasing operation is taxable， no matter whether the company has establishment in china .so is the immovable property， provided the property is located in china.
Taxpayer： what you said is important to us， and anything else？
Tax official： the tax base depends on the nature of leasing item， the finance leasing and business leasing.
Taxpayer： what do you mean by the finance leasing？
Tax official： it means the leasing operation that the ownership of the property will ultimately be passed to the borrower at the end of the leasing period. In this case， the business tax is levied on the net rental amount received after deducting the purchase price of the leased asset.
Taxpayer： the business leasing do not involve the passing of the ownership， is that right？
Tax official： yes .so different from the finance leasing situation， the whole rental turnover is taxable
Taxpayer： how about the tax rate？
Tax official： it is 5%.
Taxpayer： thank you very much.