Decision of the State Council on Amending the "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China"

The State Council decided to amend the "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China" ” is revised as follows:

1. Article 13 is revised to read: “The subsidies and allowances issued in accordance with the unified regulations of the state mentioned in item 3 of Article 4 of the Tax Law refer to the subsidies and allowances issued in accordance with the regulations of the State Council. special government allowances, academician allowances, senior academician allowances, and other subsidies and allowances exempted from personal income tax as stipulated by the State Council."

2. Article 18 is revised to: "Article 6, Paragraph 1 of the Tax Law. The total income in each tax year mentioned in the third item refers to the operating profits and wages and salaries received by the taxpayer in accordance with the provisions of the contract operation or lease operation contract; the deduction of necessary expenses refers to 1,600 yuan will be deducted on a monthly basis."

3. Add one item as Article 25: "According to national regulations, the basic pension insurance premiums and basic medical insurance paid by the unit for individuals and individuals. Premiums, unemployment insurance premiums, and housing provident funds shall be deducted from the taxable income of the taxpayer.”

4. Article 26 is changed to Article 27, and is revised to: “Article 2 of the Tax Law. The additional deductions mentioned in the third paragraph of Article 6 refer to the deduction of the amount specified in Article 29 of these Regulations on the basis of the monthly deduction of 1,600 yuan.”

5. Article 35 is changed to Article 36, and is revised to read: “If a taxpayer has any of the following circumstances, he shall go to the competent tax authority to make a tax declaration in accordance with the regulations:

(1) Annual income of more than 120,000 yuan;

(2) Obtaining income from wages and salaries from two or more places within China;

(3) Obtaining income from outside China ;

(4) Obtaining taxable income without a withholding agent;

(5) Other circumstances specified by the State Council

Annual income of 120,000. Taxpayers with an amount of more than RMB 10,000 shall go to the competent tax authorities to file tax returns within 3 months after the end of the year. "

"The place where taxpayers file tax returns and other relevant matters shall be governed by the state. Formulated by the State Administration of Taxation. ”

6. Add one article as Article 37: “The withholding declaration for all employees in Article 8 of the Tax Law refers to the withholding tax by the withholding agent. Within the month after the payment is made, the basic information of the individual who paid the income, the amount of the income paid, the specific amount and total amount of tax withheld, and other relevant tax-related information shall be reported to the competent tax authorities.

"All employees. The administrative measures for full withholding declaration shall be formulated by the State Administration of Taxation. "

At the same time, the order of the provisions will be adjusted accordingly.

This decision will come into effect on January 1, 2006.

"The People's Republic of China The Implementation Regulations of the Individual Income Tax Law of the People's Republic of China will be revised accordingly according to this decision and re-promulgated. The Implementation Regulations of the Individual Income Tax Law of the People's Republic of China

(January 1994). Order No. 142 of the State Council of the People's Republic of China was issued on the 28th and was revised in accordance with the "Decision of the State Council on Amending the Implementation Regulations of the Individual Income Tax Law of the People's Republic of China" on December 19, 2005)

Article 1 These regulations are formulated in accordance with the provisions of the "Individual Income Tax Law of the People's Republic of China" (hereinafter referred to as the Tax Law)

Article 2 The provisions of Article 1, Paragraph 1 of the Tax Law. An individual who has a residence in China refers to an individual who habitually resides in China due to household registration, family, or economic interests.

Article 3: "Residence" as mentioned in Paragraph 1 of Article 1 of the Tax Law. Residence for one year refers to the period of temporary absence in China for 365 days in a tax year, and the number of days shall not be deducted.

The temporary absence mentioned in the preceding paragraph refers to the period of temporary absence in China. No more than 30 days of departure or no more than 90 days of multiple departures in the year.

Article 4 The income obtained from the territory of China mentioned in paragraph 1 and paragraph 2 of Article 1 of the Tax Law refers to the income derived from the territory of China; the income obtained from outside China refers to the income obtained from outside China. It refers to income derived from outside China.

Article 5 The following income, regardless of whether the place of payment is within the territory of China, is income from within the territory of China:

(1) Income due to holding office, employment, performance of a contract, etc. Income from the provision of labor services in China;

(2) Income from leasing property to a lessee for use in China;

(3) Transfer of buildings, Income from property such as land use rights or the transfer of other properties within China;

(4) Income from licensing various franchises for use within China;

(5) Interest, dividends and bonus income obtained from companies, enterprises, other economic organizations or individuals in China.

Article 6 For individuals who have no domicile in China but have resided for more than one year and less than five years, their income from sources outside China may, with the approval of the competent tax authorities, be transferred solely to companies or enterprises within China. And the part paid by other economic organizations or individuals shall pay personal income tax; individuals who have resided for more than five years shall pay personal income tax on all their income from outside China starting from the sixth year.

Article 7 For individuals who have no domicile in China, but whose continuous or cumulative residence in China does not exceed 90 days in a tax year, their income derived from China shall be paid by the overseas employer and shall not be paid by the overseas employer. The part borne by the employer's institutions and sites in China is exempt from personal income tax.

Article 8 The scope of various personal incomes mentioned in Article 2 of the Tax Law:

(1) Wage and salary income refers to the income obtained by an individual due to his or her employment. Wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies and other income related to office or employment.

(2) The production and operating income of individual industrial and commercial households refers to:

1. Individual industrial and commercial households are engaged in industry, handicrafts, construction, transportation, commerce, catering, Income from production and operations in the service industry, repair industry, and other industries;

2. Income obtained by individuals who have obtained licenses with approval from relevant government departments and engaged in running schools, medical care, consulting, and other paid service activities;

3. Income obtained by other individuals from individual industrial and commercial production and operations;

4. Various taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.

(3) Income from contracted operations and leasing operations of enterprises and institutions refers to the income obtained from individual contracted operations, leasing operations, subcontracting, and subletting, including the wages received by individuals on a monthly or per-time basis. , income in the nature of salary.

(4) Income from labor remuneration refers to individuals engaged in design, decoration, installation, drawing, laboratory testing, medical treatment, law, accounting, consulting, lecturing, news, broadcasting, translation, review, calligraphy and painting , sculpture, film and television, audio and video recording, performances, performances, advertising, exhibitions, technical services, introduction services, brokerage services, agency services and other services.

(5) Income from author remuneration refers to the income an individual obtains from the publication or publication of his works in the form of books, newspapers and periodicals.

(6) Income from royalties refers to the income obtained by individuals from providing the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises; the income obtained from providing the right to use copyrights , excluding royalties.

(7) Interest, dividends, and bonus income refer to interest, dividends, and bonus income obtained from individuals owning debts and equity.

(8) Property leasing income refers to the income obtained by individuals from leasing buildings, land use rights, machinery and equipment, vehicles and ships, and other properties.

(9) Income from property transfer refers to the income obtained by individuals from the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and ships, and other properties.

(10) Incidental income refers to an individual’s income from winning a prize, winning a prize, winning a lottery, and other incidental income.

If it is difficult to define taxable income items for personal income, it shall be determined by the competent tax authority.

Article 9 The measures for collecting personal income tax on stock transfer income shall be formulated separately by the Ministry of Finance and submitted to the State Council for approval and implementation.

Article 10 Taxable income obtained by individuals includes cash, physical objects and securities. If the income is in kind, the taxable income shall be calculated based on the price indicated on the voucher obtained; if there is no voucher in kind or the price indicated on the voucher is obviously low, the tax authority shall determine the taxable income with reference to the local market price. Taxable income. If the income is from marketable securities, the taxable income shall be determined by the competent tax authorities based on the par value and market price.

Article 11 The one-time income from remuneration for labor services mentioned in Item 4 of Article 3 of the Tax Law is abnormally high refers to an individual’s one-time remuneration for labor services whose taxable income exceeds 20,000 yuan.

For the part of the taxable income in the preceding paragraph that exceeds 20,000 yuan to 50,000 yuan, the tax payable shall be calculated in accordance with the tax law and then an additional 50% shall be levied according to the tax payable; the part exceeding 50,000 yuan shall be levied an additional 10%. become.

Article 12 The interest on national debt mentioned in Item 2 of Article 4 of the Tax Law refers to the interest income obtained by individuals holding bonds issued by the Ministry of Finance of the People's Republic of China and the People's Republic of China; Interest on financial bonds issued by the state refers to the interest income earned by individuals holding financial bonds issued with the approval of the State Council.

Article 13 The subsidies and allowances issued in accordance with the unified provisions of the state as mentioned in Item 3 of Article 4 of the Tax Law refer to the special government allowances, academician allowances and senior academician allowances issued in accordance with the provisions of the State Council. , as well as other subsidies and allowances exempted from personal income tax stipulated by the State Council.

Article 14 The welfare fees mentioned in Item 4 of Article 4 of the Tax Law refer to the welfare fees or trade union funds withdrawn from enterprises, institutions, state agencies, and social groups in accordance with relevant national regulations. Living allowances paid to individuals; the so-called relief funds refer to the living hardship subsidies paid to individuals by the state civil affairs department.

Article 15 The income of the diplomatic representatives, consular officers and other personnel of the embassies and consulates of various countries in China that should be exempted from tax in accordance with the laws of our country as mentioned in Item 8 of Article 4 of the Tax Law refers to the income in accordance with the Income that is tax-free under the Regulations of the People's Republic of China on Diplomatic Privileges and Immunities and the "Regulations of the People's Republic of China on Consular Privileges and Immunities".

Article 16 For the reduction of personal income tax mentioned in Article 5 of the Tax Law, the extent and duration of the reduction shall be stipulated by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.

Article 17 The costs and expenses mentioned in Item 2 of Article 6, Paragraph 1 of the Tax Law refer to the various direct expenditures and distributions incurred by the taxpayer in production and operation that are included in the cost. Indirect expenses, sales expenses, management expenses, and financial expenses; the losses referred to refer to various non-operating expenses incurred by the taxpayer in the production and operation process.

If a taxpayer engaged in production or business fails to provide complete and accurate tax information and cannot correctly calculate the taxable income, the competent tax authority shall determine the taxable income.

Article 18 The total income of each tax year mentioned in Item 3 of Article 6, Paragraph 1 of the Tax Law refers to the operating profits distributed by the taxpayer in accordance with the provisions of the contract operation or lease operation contract. and income in the nature of wages and salaries; the deduction of necessary expenses refers to a monthly deduction of 1,600 yuan.

Article 19 The original value of property mentioned in Item 5 of Article 6, Paragraph 1 of the Tax Law refers to:

(1) Securities, which is the purchase price and Relevant fees paid in accordance with regulations when purchasing;

(2) Buildings, including construction fees or purchase prices and other relevant fees;

(3) Land use rights, including The amount paid to obtain the land use right, the cost of developing the land and other related expenses;

(4) Machinery and equipment, vehicles and ships, including the purchase price, transportation fees, installation fees and other related expenses;

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(5) Other property shall be determined by referring to the above method.

If the taxpayer fails to provide a complete and accurate certificate of the original value of the property and cannot correctly calculate the original value of the property, the competent tax authority shall determine the original value of the property.

Article 20 The reasonable expenses mentioned in Item 5 of Article 6, Paragraph 1 of the Tax Law refer to the relevant expenses paid in accordance with regulations when selling property.

Article 21: Each income mentioned in Item 4 and Item 6 of Paragraph 1 of Article 6 of the Tax Law refers to:

(1) Income from remuneration for labor services, If it is a one-time income, the income is considered as one time; if it is a continuous income from the same project, the income obtained within one month is considered as one time.

(2) Income from author remuneration shall be calculated as the income from each publication or publication.

(3) Income from royalties shall be the income obtained from one licensed use of a franchise.

(4) Income from property leasing shall be regarded as income obtained within one month.

(5) Income from interest, dividends, and bonuses shall be regarded as income obtained when interest, dividends, and bonuses are paid.

(6) Incidental income shall be counted as one time each time the income is obtained.

Article 22 For income from property transfer, tax shall be calculated based on the balance of the income from the one-time transfer of property minus the original value of the property and reasonable expenses.

Article 23 If two or more individuals*** obtain income from the same item at the same time, the income obtained by each individual shall be taxed separately in accordance with the provisions of the tax law after deducting expenses.

Article 24 The donation of income by individuals to education and other public welfare undertakings mentioned in paragraph 2 of Article 6 of the Tax Law refers to the donation of income by individuals through social organizations and the state within China. Donations made by agencies to education and other social welfare undertakings, as well as areas hit by severe natural disasters and poverty-stricken areas.

The amount of donation that does not exceed 30% of the taxable income declared by the taxpayer can be deducted from the taxable income.

Article 25 In accordance with national regulations, the basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, and housing provident funds paid by the unit for individuals and paid by individuals shall be deducted from the taxable amount of the taxpayer. Deducted from income.

Article 26 The income from wages and salaries obtained outside China as mentioned in paragraph 3 of Article 6 of the Tax Law refers to the income from wages and salaries obtained from working or being employed outside China.

Article 27 The additional deductions mentioned in Paragraph 3 of Article 6 of the Tax Law refer to the deduction of 1,600 yuan per month, plus the deductions of Article 29 of these Regulations. fees specified in the article.

Article 28 The scope of application of additional deductions mentioned in paragraph 3 of Article 6 of the Tax Law refers to:

(1) Foreign-invested enterprises in China and foreign personnel working in foreign enterprises;

(2) Foreign experts applying to work in enterprises, institutions, social groups, and state agencies in China;

(3) Individuals who have residence in China and work or are employed outside China to obtain wages and salaries;

(4) Other personnel determined by the Ministry of Finance.

Article 29 The standard for additional deductions mentioned in paragraph 3 of Article 6 of the Tax Law is 3,200 yuan.

Article 30 Overseas Chinese and compatriots from Hong Kong, Macao and Taiwan shall refer to the provisions of Articles 27, 28 and 29 of these Regulations.

Article 31 For individuals who have a domicile in China, or who have no domicile and have lived in the country for one year, the tax payable shall be calculated separately on the income derived from China and abroad.

Article 32 The amount of personal income tax paid abroad as mentioned in Article 7 of the Tax Law refers to the income obtained by the taxpayer from outside China. According to the laws of the country or region where the income originates, The amount of tax paid and actually paid.

Article 33 The tax payable calculated in accordance with the provisions of the tax law as mentioned in Article 7 of the Tax Law refers to the income obtained by the taxpayer from outside China, and distinguishes between different countries or regions and different taxable items. , the tax payable calculated in accordance with the expense deduction standards and applicable tax rates stipulated in the tax law; the sum of the tax payable for different taxable items in the same country or region shall be the deduction limit for that country or region.

If the amount of personal income tax actually paid by a taxpayer in a country or region outside China is lower than the deduction limit of that country or region calculated in accordance with the provisions of the preceding paragraph, the taxpayer shall pay the difference in tax in China. If the deduction limit of the country or region is exceeded, the excess portion shall not be deducted from the tax payable in the current tax year, but may be deducted from the balance of the deduction limit of the country or region in subsequent tax years. The maximum deduction period shall not exceed five years.

Article 34 When a taxpayer applies for deduction of personal income tax paid overseas in accordance with the provisions of Article 7 of the Tax Law, he shall provide the original tax payment certificate issued by the overseas tax authority.

Article 35 When making taxable payments to individuals, the withholding agent shall withhold the tax in accordance with the provisions of the tax law, pay it to the treasury on time, and make a special record for future reference.

The payment mentioned in the preceding paragraph includes cash payment, remittance payment, transfer payment and payment in the form of securities, physical objects and other forms.

Article 36 If a taxpayer has any of the following circumstances, he or she shall go to the competent tax authority to file a tax declaration in accordance with regulations:

(1) Annual income of more than 120,000 yuan ;

(2) Income from wages and salaries obtained from two or more places within China;

(3) Income obtained from outside China;

(4) Obtaining taxable income without a withholding agent;

(5) Other circumstances specified by the State Council.

Taxpayers with an annual income of more than 120,000 yuan must go to the competent tax authority to file a tax declaration within 3 months after the end of the year.

The administrative measures for the place where taxpayers should file tax returns and other related matters shall be formulated by the State Administration of Taxation.

Article 37 The withholding declaration for all employees and in full as mentioned in Article 8 of the Tax Law means that the withholding agent shall submit its tax returns to the competent tax authorities within the month following the withholding of tax. The basic information of the individual receiving income, the amount of income paid, the specific amount and total amount of tax withheld, and other relevant tax-related information.

The management measures for withholding and filing declarations in full for all employees shall be formulated by the State Administration of Taxation.

Article 38 For self-declared taxpayers, when declaring taxes, the taxes that have been withheld in China shall be deducted from the amount of tax payable in accordance with regulations.

Article 39 If a taxpayer has two or more items of income listed in Article 2 of the Tax Law, tax shall be calculated separately for each item. If the income obtained in Item 1, Item 2, or Item 3 of Article 2 of the Tax Law is obtained from two or more places in China, the income from the same item shall be calculated and taxed together.

Article 40 The specific industries mentioned in paragraph 2 of Article 9 of the Tax Law refer to the mining industry, ocean transportation industry, ocean fishing industry and other industries determined by the Ministry of Finance.

Article 41 The tax calculation method of annual calculation and monthly prepayment mentioned in Paragraph 2 of Article 9 of the Tax Law refers to the tax collection method for employees in specific industries listed in Article 40 of these Regulations. Taxes payable on wages and salary income are prepaid on a monthly basis. Within 30 days from the end of the year, the wages and salary income for the whole year are totaled, and then averaged over 12 months to calculate the actual tax payable. Any excess tax will be refunded. Supplement less.

Article 42, Article 9, Paragraph 4 of the Tax Law, which requires the taxpayer to pay the tax payable to the state treasury within 30 days after the end of the year, refers to the one-time acquisition of the contract at the end of the year. Taxpayers with income from operations or leases shall pay the tax payable to the state treasury within 30 days from the date of receipt of the income.

Article 43 In accordance with the provisions of Article 10 of the Tax Law, if the income is in foreign currency, it shall be converted into RMB according to the foreign exchange rate announced by the People's Bank of China on the last day of the previous month when the tax payment voucher is issued. Calculate taxable income. According to the provisions of the tax law, if the final settlement is made after the end of the year, the foreign currency income for which taxes have been paid in advance on a monthly or one-time basis will not be re-converted; the part of the income that should be paid back tax will be calculated according to the previous tax year. The foreign exchange rate announced by the People's Bank of China on the last day is converted into RMB to calculate the taxable income.

Article 44 When the tax authorities pay handling fees to the withholding agent in accordance with the provisions of Article 11 of the Tax Law, they shall fill out a monthly income refund form and issue it to the withholding agent. The withholding agent shall go to the designated bank with the income return letter to handle the withdrawal procedures.

Article 45 The formats of personal income tax returns, withholding personal income tax reports and personal income tax payment vouchers shall be uniformly formulated by the State Administration of Taxation.

Article 46 The tax year mentioned in the tax law and these regulations starts from January 1st to December 31st of the Gregorian calendar.

Article 47 Starting from the tax year 1994, personal income tax will be calculated and levied in accordance with the provisions of the tax law and these regulations.

Article 48 These Regulations shall be interpreted by the Ministry of Finance in conjunction with the State Administration of Taxation.

Article 49 These Regulations shall come into effect on the date of promulgation. The "Interim Provisions of the State Council of the People's Republic of China on Reducing Personal Income Tax on the Wages and Salaries of Foreign Personnel Working in China" promulgated by the State Council on August 8, 1987 was abolished at the same time.