Can I Set Up a Company at a Self-used Residence or a Friend's/family Member's Home, and is a Lease Agreement Necessary?
According to Article 14, Paragraph 1, Clause 5, Subparagraph 4 of the Income Tax Act, if a company’s owner, shareholder, or a relative lends all houses to the corporation for business use without charge, the tax collection agency will calculate the lease income based on the “local general rent situation” and impose taxes on the property owner. In other words, whether the company is registered at “one’s own home” or a “friend’s/family member’s home,” it does not fall within the legal scope of gratuitous use. Therefore, it is recommended that both parties sign a lease agreement.
