The confirmation of the duty time of the business tax on rent income should be paid attention to by the tax authorities.

The ninth provision of the Provisional Regulations on business tax stipulates that the time of tax payment duty of business tax is the day when the taxpayer receives the business income or obtains the credentials of the business income.

Although the provisions of this clause define the time of tax liability to a certain extent, in real life, most of the rent income is collected in advance, whereas the twenty-eighth provision of the detailed rules for the implementation of the Provisional Regulations of business tax stipulates that taxpayers' right to pfer land to use or to sell real estate is to be collected in advance, and that the time of tax payment is due to the day when the taxpayer receives the advance payment.

According to the above provisions, if the tax authorities impose a tax on the taxpayer on the day of obtaining the prepaid rent, the application of the law may have the suspicion of expanding the application scope of the twenty-eighth rules for the implementation of the Interim Regulations on business tax.

According to the fifth provision of Document No. 16 of tax [2003], it is stipulated that when the unit and individual provide taxable services, pfer the patent rights, non patented technology, trademark rights, copyright and goodwill, the prepaid nature price (including pre payment, prepayment, prepaid expenses, advance deposit, etc.), and the time when the tax liability occurs, shall be recognized as the time of the income in accordance with the provisions of the financial accounting system.

Therefore, when the period of prepaid rent is defined, the time when the duty is recognized as income is the time of tax liability.