I. Comprehensive tax exemption provisions

(1) The scope of exemption from personal income tax: (1) bonuses in science, education, technology, culture, health, sports and environmental protection issued by provincial people's governments, ministries and commissions of the State Council and units of the People's Liberation Army of China at or above the military level, as well as foreign organizations and international organizations; (2) Interest on national debt and financial bonds issued by the state; (3) the one-child fee; (4) the implementation of the civil service wage system is not included in the total basic wage subsidies, subsidies and family members of non-staple food subsidies; (5) child care subsidy; (6) Travel allowance and meal allowance reimbursed according to regulations; (7) Temporary subsidies for sexual difficulties paid from welfare funds or trade union funds; (8) Relief subsidies paid by civil affairs departments; (9) Subsidies and allowances granted according to the unified national regulations < P >; (1) Insurance indemnity and pension; (11) Military transfer fees and demobilization fees; (12) The settling-in allowance, resignation fee, retirement salary, retirement salary and retirement living allowance paid to cadres and workers in accordance with the unified regulations of the state; (13) Housing provident fund, medical insurance, basic old-age insurance and unemployment insurance paid to designated financial institutions according to the proportion stipulated by the state or local government; (14) income from direct production and operation of disabled, lonely and elderly people and martyrs; (15) For employees of state-owned enterprises, the income from one-time resettlement fees obtained from bankrupt enterprises because the enterprises declared bankruptcy in accordance with the Enterprise Bankruptcy Law of the People's Republic of China (for Trial Implementation); (16) Income from diplomatic representatives, consular officials and other personnel of embassies and consulates in China that should be exempted from tax according to the relevant laws of China (referring to the Regulations on Diplomatic Privileges and Immunities of the People's Republic of China and the Regulations on Consular Privileges and Immunities of the People's Republic of China); (17) the international conventions and agreements signed by China, including the income exempted from tax in the agreements and arrangements for avoiding double taxation signed by China with relevant countries and regions; (18) Income exempted from tax with the approval of the financial department of the State Council.

At present, the only subsidies and allowances exempted from personal income tax in the State Council are (1) 2 yuan per person per month for academicians of China Academy of Sciences; (2) Senior Academician of China Academy of Sciences and Senior Academician of China Academy of Engineering each receive a senior academician allowance of 1, yuan per year.

(II) Preferential income tax for foreign individuals:

1. Housing subsidies, food subsidies, relocation expenses and laundry expenses obtained by foreign individuals in the form of non-cash or reimbursement.

2. Subsidies for domestic and overseas business trips obtained by foreign individuals according to reasonable standards.

3. The expenses for visiting relatives obtained by foreign individuals (according to the latest regulations of the General Administration of Taxation, no more than twice a year, and transportation expenses vouchers are required), language training expenses, children's education expenses, etc., are considered as reasonable after examination and approval by the local tax authorities.

4. Profits, dividends and bonus income obtained by foreign individuals from foreign-invested enterprises.

5. Foreign experts who meet one of the following conditions can be exempted from personal income tax:

(1) Foreign experts who are directly sent by the World Bank to work in China according to the special loan agreement of the World Bank;

(2) experts directly sent to work in China by United Nations organizations;

(3) Experts sent by donor countries to China to work for the country's free aid projects;

(4) The wages and salaries of cultural and educational experts who have come to China to work for less than two years under the cultural exchange program signed by the two governments are borne by the country;

(5) The wages and salaries of cultural and educational experts who have worked in China for less than two years under the international exchange program of Chinese universities and colleges are borne by the country;

(6) The wages and salaries of experts who come to work in China through non-governmental scientific research agreements are borne by the government agencies of that country;

(7) Experts working in China for United Nations aid projects.

(III) Reduction of individual income tax:

In case of any of the following circumstances as stipulated in the tax law, individual income tax may be reduced upon approval:

(1) If a taxpayer has caused heavy losses due to serious natural disasters, the individual income tax may be reduced within a certain period and scope after reporting to the competent tax authorities for approval.

(2) other tax reductions approved by the financial department of the State Council.

II. Provisions on Individual Tax Exemption

1. Individuals who purchase social welfare prize-winning donations, sports lottery tickets and China welfare disaster relief lottery tickets are temporarily exempted from personal income tax; If the income from winning a prize exceeds 1, yuan at a time, individual income tax shall be levied in full according to the provisions of the tax law.

2. Bonuses won by Ceng Xianzi Education Foundation Teacher Award, the first Golden Ball Award of Hong Kong Bernington (China) Education Foundation, the Yangtze River Scholar Achievement Award, the fifth Soong Ching Ling Children's Literature Award, the International Youth Poverty Eradication Award, and participation in the "Little Scientist of the Yangtze River" activities are exempt from personal income tax.

3. The distinguished professor Prize awarded by the Ministry of Education is exempt from personal income tax.

4. With the approval of the people's government at or above the township level or the courageous foundation or similar organization with institutions and articles of association established with the approval of the competent department of the people's government at or above the county level, bonuses or prizes for rewarding courageous people shall be exempted from personal income tax.

5. Individual income from stock transfer will continue to be temporarily exempted from individual income tax.

6. The capitalization of capital reserve funds by joint-stock enterprises does not belong to the distribution of dividends and bonuses. The amount of capitalization obtained by individuals is not regarded as personal income, and personal income tax is not levied.

7. The income similar to the interest of educational savings deposits obtained by individuals and the interest income of other special savings deposits or savings special fund deposits determined by the financial department of the State Council are exempt from personal income tax.

8. Interest income from housing provident fund, medical insurance, basic old-age insurance and unemployment insurance funds paid in proportion to the national or provincial local government is exempt from personal income tax.

9. Income from personal transfer of a house that has been used for personal use for more than five years and is the only family living room.

1. Bonuses obtained by individuals for reporting and investigating various illegal and criminal acts.

11. The withholding fee obtained by the individual when going through the tax withholding formalities.

III. Donation deduction

According to the Individual Income Tax Law and its Implementation Regulations; The donation of personal income to education and other public welfare undertakings refers to the donation of personal income to education and other public welfare undertakings, as well as areas suffering from serious natural disasters and poverty-stricken areas through social organizations and state organs in China.

if the donation amount does not exceed 3% of the taxable income declared by the taxpayer, it can be deducted from the taxable income.

1. Donations made by individuals to public welfare youth activity places (including new ones) through non-profit social organizations and state organs are allowed to be fully deducted before paying personal income tax.

2. Donations made by individuals to the Red Cross through non-profit social organizations and state organs (including the Red Cross) are allowed to be fully deducted when calculating and paying personal income tax.

3. Donations made by individuals to welfare and non-profit elderly service institutions through non-profit social organizations and government departments are fully deducted when calculating and paying personal income tax.

4. Donations made by individuals to rural compulsory education through non-profit social organizations and state organs are allowed to be deducted in full from the income before paying individual income tax.

5. Individuals' charitable and relief donations to charities and foundations through non-profit social organizations and state organs are allowed to be fully deducted when calculating and paying personal income tax.

6. Taxpayers donate their taxable income to education and civil affairs departments, as well as public welfare and relief donations in areas suffering from natural disasters and poverty-stricken areas through Guanghua Science and Technology Foundation, and the part of individuals who receive less than 3% of taxable income is allowed to be deducted before tax.

7. Taxpayers' public welfare and relief donations to the China Population Welfare Foundation are allowed to be deducted before tax for the part within 3% of the taxable income declared by individuals.

Further reading: How to buy insurance, which is better, and teach you how to avoid these "pits" of insurance.