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1 The property is jointly owned by husband and wife.
2 In general, leasing property is subject to Business Tax (BT), Individual Income Tax (IIT), and Real Estate Tax (RET). In addition to these 3 types of taxes, some other types of taxes and surcharges may also be imposed on the rental income varying from city to city. In Shanghai, City Construction Tax and Education Surcharge are the additional payments imposed on the rental income on top of the abovementioned major taxes. The BT is imposed on gross income at 5%, the RET is also imposed on gross income at 12%, while the IIT is usually imposed on the rental income after particular expenses deductions and allowances.
3 However, all the mentioned taxes and surcharges imposed on the rental income from leasing properties in Shanghai have been levied at an integrated rate of 5% on the gross income since 01 August 1999. Confirmed with the Shanghai Tax Bureau, the integrated tax rate of 5% is applied to both residents and non-residents of China.