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Tenants fear rent hikes for declaring additional tax deductions

Release time:2019-01-09 14:12    To share:  

A WOMAN who lives in a rented apartment in Futian District recently received a text message from her landlord, telling her not to declare a tax deduction for rental housing, or her rent would be raised, the Southern Metropolis Daily reported yesterday.

The woman, surnamed Chen, pays 2,900 yuan (US$423) per month for a 26-square-meter apartment with a balcony and a toilet in the Shangmeilin area. The landlord told Chen that under the lease contract they have signed, Chen will shoulder all rent-related taxes, meaning that any taxes incurred following Chen filed for a tax deduction for rental housing after the new measures for special individual income tax deductions came into effect Jan. 1 will be added to Chen’s monthly rent.

“I hadn’t considered declaring for tax deductions for my rent yet, but the landlord sent me the message warning me not to declare,” said Chen. “I intend to give up the benefit that the country is giving to taxpayers.”

Chen is one of many tenants who have begun to worry that their landlords will raise their rent since declaration for additional tax deductions began Jan. 1. A tenant can enjoy a tax deduction for rental housing by filling in the landlord’s name and ID card number on the application platform.

While many landlords fear that they will be required to pay more taxes after their tenants provide the information, tenants are afraid that their rent will be increased as a result. However, the tax authority said it has not been notified about any additional taxes to be collected in relation to the new tax deduction policy.

The Daily contacted the taxpayer service platform of the State Taxation Administration and consulted the staff on the issue that concerns both tenants and landlords.

The tax authority said a landlord has to pay taxes for leasing a property in accordance with the law. According to the current policy, landlords will not be required to pay extra taxes.

The tax authority said the reason for submitting a landlord’s information is to allow tenants to enjoy a tax deduction and ease their financial burden, and doesn’t affect the landlord, who should pay the relevant taxes as soon as the tenancy contract comes into effect.