How to pay tax on the rental income of Hong Kong companies in the Mainland?

1. First of all, a wholly foreign-owned enterprise (WFOE) or a joint venture (JV) is registered in the Mainland, registered with the tax bureau and obtained a tax registration certificate.

2. Indicate in the lease contract that the lessor is a Hong Kong company and the lessor is WFOE or a joint venture registered in the Mainland.

3. The lessor shall issue a lease invoice or lease receipt to the Hong Kong company and collect the rent according to the contract.

4. After receiving the lease invoice or lease receipt, the Hong Kong company needs to declare the rental income in Hong Kong and pay the income tax in Hong Kong.

5. Hong Kong companies need to declare their rental income to the inland tax bureau and pay corporate income tax, value-added tax and other taxes in accordance with relevant laws and regulations in the mainland.

6. Hong Kong companies don't have permanent offices in the Mainland, so they need to report the rental income to the tax authorities in time and pay taxes in time.