Calculation of taxable income according to Article 6 of the Individual Income Tax Law of People's Republic of China (PRC):
(1) For the comprehensive income of individual residents, the taxable income shall be the income after deducting expenses of 60,000 yuan, special additional deductions and other deductions determined according to law.
(2) For the income from wages and salaries of non-resident individuals, the taxable income shall be the balance of monthly income after deducting expenses of 5,000 yuan; Income from remuneration for labor services, remuneration for manuscripts and royalties shall be taxed.
(3) For operating income, the taxable income shall be the balance of the total income in each tax year after deducting costs, expenses and losses.
(four) if the income from property leasing does not exceed 4,000 yuan each time, the 800 yuan shall be deducted; If it exceeds 4,000 yuan, 20% of the expenses will be deducted, and the balance will be taxable income.
(5) For the income from property transfer, the taxable income shall be the balance after deducting the original value of the property and reasonable expenses from the income from property transfer.
(6) Interest, dividends, bonus income and contingent income shall be limited to the taxable income each time.
Income from remuneration for labor services, remuneration for manuscripts and royalties shall be the balance after deducting expenses. The amount of remuneration should be reduced by 70%.
Individuals donate their income to public welfare charities such as education, poverty alleviation and poverty alleviation, and the part of the donation that does not exceed 30% of the taxable income declared by taxpayers can be deducted from their taxable income; If the State Council stipulates that donations to charity should be fully deducted before tax, such provisions shall prevail.
The special deduction specified in item 1 of the first paragraph of this article includes social insurance premiums such as basic old-age insurance, basic medical insurance, unemployment insurance and housing accumulation fund paid by individual residents in accordance with the scope and standards prescribed by the state; Special additional deductions include children's education, continuing education, medical treatment for serious illness, housing loan interest or housing rent, support for the elderly and other expenses. The specific scope, standards and implementation steps are determined by the State Council and reported to the NPC Standing Committee for the record.
Fifteenth public security, the people's Bank, financial supervision and management departments should assist the tax authorities to confirm the identity of taxpayers and financial account information. Education, health, medical security, civil affairs, human resources and social security, housing and urban construction, public security, the People's Bank of China, financial supervision and management and other relevant departments shall provide the tax authorities with special additional deduction information such as taxpayer's children's education, continuing education, serious illness medical treatment, housing loan interest, housing rent, and support for the elderly.
If an individual transfers real estate, the tax authorities shall verify the personal income tax payable according to the relevant information such as real estate registration. When handling the transfer registration, the registration institution shall check the personal income tax payment vouchers related to the transfer of real estate. Where an individual transfers his equity for registration of change, the market entity registration authority shall examine the personal income tax payment voucher related to the equity transaction.
The relevant departments shall, in accordance with the law, incorporate the compliance of taxpayers and withholding agents into the credit information system and implement joint incentives or punishments.
Extended data:
Other deductions mentioned in Article 13 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China include the payment of enterprise annuities and occupational annuities that meet the requirements of the state, the purchase of commercial health insurance and tax deferred commercial endowment insurance that meet the requirements of the state, and other items that can be deducted according to the provisions of the State Council.
Special additional deductions, special additional deductions and other deductions determined according to law shall be limited to the taxable income of individual residents in a tax year; If the deduction cannot be completed within one tax year, it will not be carried forward to the next year.
Baidu Encyclopedia-People's Republic of China (PRC) Individual Income Tax Law