The employee welfare expenses incurred by the enterprise shall not exceed 14% of the total wages and salaries, and shall be deducted. In addition to living allowances and benefits for employees, personal income tax is also paid, and the comprehensive income is subject to an excessive progressive tax rate of 3% to 45%. Withholding and remitting by the company. Units and individuals who are obligated to pay taxes according to laws and administrative regulations are taxpayers. Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents.

Individual Income Tax Law of the People's Republic of China

Article 3 The tax rate of individual income tax:

(1) For comprehensive income, the excess progressive tax rate of 3% to 45% is applicable (the tax rate table is attached);

(2) For operating income, the excess progressive tax rate of 5% to 35% shall apply (the tax rate table is attached);

(3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%.

Article 4 The following incomes shall be exempted from individual income tax:

(a) science, education, technology, culture, health, sports, environmental protection and other aspects of the bonus. Awarded by the provincial people's government, the State Council ministries and commissions, China People's Liberation Army units at or above the military level, foreign organizations and international organizations;

(2) Interest on government bonds and financial bonds issued by the state;

(3) Subsidies and allowances issued in accordance with the unified provisions of the state;

(four) welfare funds, pensions and relief funds;

(5) Insurance compensation.

(6) Demobilized soldiers, demobilization fees and pensions;

(7) Resettlement fees, resignation fees, basic pension or retirement fees, resignation fees and retirement living allowances paid to cadres and workers in accordance with the unified provisions of the state;

(8) Income from diplomatic representatives, consular officials and other personnel of embassies and consulates in China who should be exempted from tax according to relevant laws;

(9) Income exempted from tax as stipulated in international conventions and agreements signed by the Government of China;

(ten) other tax-free income stipulated by the State Council.

The tax exemption provisions in Item 10 of the preceding paragraph shall be reported by the State Council to the NPC Standing Committee for the record.

Article 4 of the Law of People's Republic of China (PRC) Municipality on the Administration of Tax Collection stipulates that units and individuals with tax obligations are taxpayers.

Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents.

Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.