Is it necessary to pay property tax for free use of personal office space?

In April 2002, a company in Liaoning Province wanted to move its office space to a privately owned commercial house owned by its manager in order to save money, but it was suggested that the company should pay property tax even if the house should be provided to the company free of charge. How is the tax law stipulated in this respect?

A: According to China's "Provisional Regulations on Property Tax" and related regulations, the above situation belongs to the free operation and use of residential houses, and property tax should also be paid.

Because China's tax law stipulates that non-business owners owned by individuals mainly refer to residential houses. Property tax shall be exempted regardless of region. Business premises owned by individuals, or leased properties, are not tax-free properties and should be taxed according to regulations.

According to the relevant provisions of the Regulations on the Administration of Property Tax Collection in Liaoning Province (for Trial Implementation), the actual users of rent-free properties and houses of tax-free units and other tax-paying units are taxpayers.

Therefore, the property tax should be calculated and paid from the month when the commercial house is used for production and operation. Specifically, according to the relevant regulations of our province, the residual value of the original value of the property is deducted by 30% at one time, and then multiplied by the room tax rate 1.2% to calculate the annual property tax payable. According to the relevant provisions of the Municipal People's Government, the payment shall be made in stages (monthly, quarterly and semi-annually).