Pre-tax annual income means the amount of an individual’s actual salary before personal income tax is paid.

Personal income tax (personal income tax) is a general term for the legal norms that regulate the social relations that occur between taxation authorities and natural persons (residents and non-residents) in the collection and management of personal income tax. .

On June 19, 2018, the draft amendment to the Personal Income Tax Law was submitted to the third meeting of the Standing Committee of the 13th National People’s Congress for deliberation. This is the seventh overhaul of the Personal Income Tax Law since its introduction in 1980.

The draft decision of the Standing Committee of the National People's Congress on amending the Personal Income Tax Law was submitted to the fifth meeting of the Standing Committee of the Thirteenth National People's Congress for review on August 27, 2018. According to the draft decision, the basic deduction standard is planned to be 60,000 yuan per year, or 5,000 yuan per month, and the new tax rate range from 3% to 45% remains unchanged.

On August 31, 2018, the decision to amend the Personal Income Tax Law was passed. The starting point is 5,000 yuan per month. The latest starting point and tax rate will be implemented on October 1, 2018.

Extended information:

The United Kingdom is the first country to levy personal income tax. In 1799, the United Kingdom began to experiment with differential tax rates for personal income tax. It was not until 1874 that it became a fixed tax in the United Kingdom.

Personal income tax payers include both resident taxpayers and non-resident taxpayers. Resident taxpayers have full tax obligations and must pay personal income tax on all their income from sources within China and outside China; non-resident taxpayers must pay personal income tax only on their income from sources within China.

Personal income tax is a type of income tax levied by the state on the income of its own citizens, individuals living in the country, and the income of overseas individuals derived from the country. In some countries, personal income tax is the main tax, accounting for a large proportion of fiscal revenue and having a large impact on the economy.

Reference: Baidu Encyclopedia-Annual Income Before Tax