Core Viewpoint - Beijing has introduced a new tax policy to support the high-quality development of the housing rental industry, effective from January 1, 2024, which includes significant tax reductions for housing rental enterprises [1][2]. Group 1: Tax Policy Changes - Housing rental enterprises can enjoy a reduced value-added tax rate from 5% to 1.5% under the new policy [2]. - The property tax rate for organizations renting to specialized housing rental enterprises will decrease from 12% to 4% [2]. Group 2: Expansion of Eligibility Criteria - The threshold for qualifying as a specialized housing rental enterprise has been lowered from 1,000 units or 30,000 square meters to 500 units or 15,000 square meters [2]. - The housing rental management service platform will automatically recognize and publish enterprises that meet the new criteria, streamlining the process for companies [2]. Group 3: Market Impact - The reduction in tax burdens is expected to enhance cash flow stability and operational efficiency for housing rental enterprises, allowing for more competitive pricing strategies [3]. - Increased competition among enterprises meeting the new standards may lead to more favorable rental prices for tenants, contributing to market stability [3].

Core Points - The Beijing Municipal Commission of Housing and Urban-Rural Development, in collaboration with the Municipal Finance Bureau and the State Taxation Administration, has developed a notification to clarify tax policies for housing rental enterprises, effective from January 1 next year [1][3]. Group 1: Policy Objectives - The notification aims to support the high-quality development of the housing rental industry and optimize the business environment, fostering professional and standardized housing rental enterprises [2][3]. Group 2: Tax Incentives - The notification expands the tax incentives for housing rental enterprises, allowing those with 500 or more rental units or a building area of 15,000 square meters or more to qualify for tax benefits, down from the previous thresholds of 1,000 units or 30,000 square meters [3][4]. - Housing rental enterprises can enjoy a reduced value-added tax rate from 5% to 1.5%, and organizations renting to these enterprises can benefit from a property tax reduction from 12% to 4% [3][4]. Group 3: Simplified Recognition Process - The notification introduces an "automatic recognition" process for professional and standardized housing rental enterprises, where the municipal housing rental management service platform will automatically compile contract and housing source information monthly [4][5]. - This process aims to enhance the business environment by simplifying the recognition of enterprises operating in the housing rental sector [5]. Group 4: Market Impact - The implementation of these tax incentives is expected to reduce operational costs for housing rental enterprises, thereby promoting the supply of rental housing and improving rental services [4][5]. - The policy encourages collaboration between enterprises and long-term rental apartment companies to activate idle resources and expand housing supply channels [5].

Core Viewpoint - The new tax policy for housing rental enterprises in Beijing will be implemented on January 1, 2026, allowing more companies to benefit from tax incentives aimed at addressing housing difficulties for new citizens and young people [1][2]. Group 1: Tax Policy Implementation - The new notification will lower the recognition standards for professional and large-scale housing rental enterprises in Beijing to owning or managing 500 rental units or a building area of 15,000 square meters or more [1][3]. - Housing rental enterprises that meet the criteria can enjoy tax benefits as outlined in the previous announcement, which includes reduced VAT rates [2][3]. Group 2: Tax Benefits Details - According to the announcement, general VAT taxpayers can choose a simplified tax method with a reduced rate of 1.5% on rental income from individuals, while small-scale VAT taxpayers will also benefit from the same reduced rate [2]. - For organizations renting to individuals, a reduced property tax rate of 4% will apply [2]. Group 3: Market Development - The previous tax policies did not include professional and large-scale housing rental enterprises, which are essential for developing a mature rental market, thus the new notification addresses this gap [2][3]. - The notification allows for automatic recognition of qualifying enterprises based on monthly statistics from the housing rental management service platform, facilitating easier access to tax benefits [3].