if my company have a rental income , wat is the tax rate for it ??and wat kind of expenses can be deductable for it ??How to reduce it ...

Thks....is the only one property of the company own and wish to rent to its related company to chare the cost/exp and as the only income of it ,is it the tax charge same as normal biz company tax rate ?? And i heard some ppl say can claim IBA is treated as factory for it...how its works and ref for it ...Thks

---

Added on May 10, 2009, 2:24 pmSorry ,one more question...do i need to prepare rental agreement and for intercompany deal ?? and the rental rate shld not lower for mkt rate is it ?? if not the IRB may queiry on it...

This post has been edited by JESS03101983: May 10 2009, 02:24 PM

IBA is applicable to manufacturing factory/warehouse only. generally, the expenses incurred can be charged on either side, both is tax deductible provided the factory/warehouse is being used(means not vacant). it is better to have a rental agreement and the rental charge should be a fair value/market rate to avoid any transfer pricing discrepancy

[/quote]


But the problem is if i rent out the factory to my related company than can i get IBA since my related is used as a factory/warehouse??if not wat allowance is give for tax deductible for a leasehold building...cause the factory is bought under related co name...

Sorry...if A is the owner and rent to B the R.Co..as a warehouse so A can claim the IBA for it ??

And if just 50 % of the place i for warehouse and bal is as office and staff welfare except IBA for warehouse wat other allowance can it get...