If you have personal income taxable income, you must declare personal income tax. If you meet the personal income tax standard, you must pay personal income tax. Failure to do so is illegal.
Personal income tax is a general term for the legal norms that regulate the social relations that occur between taxing authorities and natural persons (residents and non-residents) in the collection and management of personal income tax.
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.
Effective September 1, 2011, the personal income tax exemption amount in mainland China has been adjusted to 3,500 yuan.
Tax content
Income from wages and salaries
Income from wages and salaries refers to wages, salaries, bonuses, and Year-end salary increases, labor dividends, allowances, subsidies and other income related to office or employment. This means that any income obtained by an individual, as long as it is related to employment or employment, regardless of the source of capital expenditure of the unit or payment in the form of cash, kind, securities, etc., is subject to tax on wages and salaries. .
Production and business income of individual industrial and commercial households
The production and business income of individual industrial and commercial households include four aspects:
(1) Through the industrial and commercial administrative department Income earned by individual industrial and commercial households in urban and rural areas who have been approved to open business and have obtained business licenses from production and operations in industry, handicrafts, construction, transportation, commerce, catering, service, repair and other industries.
(2) Income obtained by individuals who have obtained business 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 engaging in individual industrial and commercial production and operations, that is, income obtained by individuals temporarily engaging in production and operation activities.
(4) Various taxable incomes related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.
Income from contracted operations and leasing operations for enterprises and institutions
Income from contracted operations and leasing operations for enterprises and institutions refers to individual contracted operations, leasing operations and subcontracting and transfer Income from rent includes income from wages and salaries received by individuals on a monthly or per-time basis.
Income from labor remuneration
Income from labor remuneration refers to individuals engaged in design, decoration, installation, drawing, laboratory testing, medical care, law, accounting, consulting, lecturing, news, and broadcasting , translation, review, calligraphy and painting, engraving, film and television, sound recording, video, performances, performances, advertising, exhibitions, technical services, introduction services, economic services, agency services and other services.
Income from author remuneration
Income from author remuneration refers to the income an individual obtains from the publication or publication of his or her works in the form of books or newspapers. The "works" mentioned here refer to works including Chinese and foreign texts, pictures, music scores, etc. that can be published and published in the form of books, newspapers and periodicals; "personal works" include my own writings, translated works, etc. If an individual receives remuneration for a posthumous work, tax shall be calculated based on the income item of the remuneration.
Income from royalties
Income from royalties refers to the income obtained by individuals from providing the right to use patents, copyrights, trademarks, non-patented technologies and other franchises. . Income from providing the right to use a copyright does not include income from royalties. The income obtained by the author from the public auction (bidding) of the original or copy of the manuscript of his written work shall be taxed as a royalty income item.
Interest, dividend, and bonus income
Interest, dividend, and bonus income refer to the interest, dividend, and bonus income obtained by individuals from owning debts and equity. Interest refers to personal deposit interest (the state announced that the interest tax will be abolished from the next day on October 8, 2008), interest on goods loans and interest on the purchase of various bonds. Dividends, also known as dividends, refer to the investment benefits that stock holders receive from a joint-stock company on a regular basis based on their stocks according to the articles of association of the joint-stock company. Dividends, also known as company (enterprise) dividends, refer to the portion of profits that a joint-stock company or enterprise distributes in excess of dividends based on the profits that should be distributed on a per-share basis. When a joint-stock enterprise pays dividends to individual shareholders in the form of stocks, or dividends, that is, bonus shares, the income tax shall be calculated based on the face value of the stocks distributed.
Income from property leasing
Income from property leasing refers to the income obtained by individuals from leasing buildings, land use rights, machinery, equipment, vehicles, and other properties. Property includes movable and immovable property.
Income from property transfer
Income from property transfer refers to the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and ships and other self-owned property by individuals to others or Income obtained from units includes income obtained from the transfer of real estate and movable properties. There is no tax for the time being on income derived from individual stock trading.
Accidental income
Accidental income refers to income obtained by an individual that is non-recurring and belongs to various opportunities, including winning a prize, winning a prize, winning a lottery and other accidental income. Income (including bonuses, in kind and securities). Individuals who purchase social welfare lottery tickets and Chinese sports lottery tickets and whose one-time winning income does not exceed 10,000 yuan are exempt from personal income tax. If the income exceeds 10,000 yuan, they should be taxed as incidental income items in full (as of April 21, 2011 The daily tax rate is 20).
Other income
Except for the above 10 taxable items, other income that should be taxed shall be determined by the finance department of the State Council. The financial department of the State Council refers to the Ministry of Finance and the State Administration of Taxation. As of April 30, 1997, other income items determined to be taxed by the Ministry of Finance and the State Administration of Taxation include:
(1) Individuals obtain the honor of academician of the Chinese Academy of Sciences issued by the "Cai Guanshen Academician of the Chinese Academy of Sciences Honors Foundation" bonus.
(2) Individuals receive savings bonuses paid by the banking sector at an amount that exceeds the nationally prescribed interest rates and value preservation subsidy rates.
(3) Free benefits and preferential treatment received by individuals due to payment of relevant insurance premiums by the employer.
(4) Interest (or similar income paid in other names) paid by the insurance company to the life insurance customers who have not been insured during the policy period based on the insured amount and the bank savings deposit interest rate for the same period.
(5) Rebate income or transaction fee return income obtained by individual shareholders because a securities company recruits large shareholders to open accounts and trade with the company, and pays part of the transaction fees obtained to large shareholders.
(6) Individuals obtain some units and departments
The department distributes cash, Physical objects or securities.
(7) Resignation risk payment.
(8) Individuals receive remuneration for providing guarantees for units or others.
If it is difficult to define which taxable income item the income obtained by an individual is, it shall be reviewed and determined by the competent tax authority.
Reduction and exemption items
According to the "Individual Income Tax Law of the People's Republic of China", the "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China" and related documents and regulations It stipulates that the tax reduction and exemption policies for personal income tax mainly include:
(1) Science, education, technology, science and technology certificates issued by provincial people's governments, ministries and commissions of the State Council and units above the military level of the Chinese People's Liberation Army, as well as foreign organizations and international organizations. Bonuses in culture, health, sports, environmental protection, etc. are exempt from personal income tax.
(2) A volunteer foundation or similar organization with an institution and charter approved by the people's government at or above the township or town level (including townships and towns) or approved by the competent department of the people's government at or above the county level (including county level), Bonuses or prizes awarded to those who act bravely for justice shall be exempted from personal income tax upon approval by the competent tax authorities.
(3) Interest on bonds issued by the Ministry of Finance and financial bonds issued with the approval of the State Council held by individuals is exempt from personal income tax.
(4) Article 5 of the State Council's "Implementation Measures for the Collection of Personal Income Tax on Savings Deposit Interest" stipulates: "Income from education savings interest obtained by individuals and other special savings deposits or special savings determined by the financial department shall be taxed." Interest income from fund deposits is exempt from personal income tax. ”
Caishuizi (1999) No. 267 further stipulates that housing provident fund, medical insurance, etc. shall be paid in accordance with the proportions prescribed by the national or provincial local governments. Interest income derived from basic pension insurance and unemployment insurance funds deposited in personal bank accounts are exempt from personal income tax.
Guoshuifa (1999) No. 180 also further stipulates that for deposits that open a special education deposit account at the Industrial and Commercial Bank of China and enjoy preferential interest rates, the interest earned will be exempt from personal income tax.
(5) Special government allowances issued in accordance with the provisions of the State Council (referring to a specific subsidy issued by the state to those who have made outstanding contributions to the development of various social undertakings, and do not generally refer to those approved and issued by the State Council) Other subsidies and allowances) and subsidies and allowances stipulated by the State Council as tax-free (currently limited to academician allowances and senior academician allowances of the Chinese Academy of Sciences and Academy of Engineering) are exempt from personal income tax.
(6) Welfare fees, that is, due to certain specific events or reasons that cause certain difficulties in the normal life of employees or their families, enterprises, institutions, state agencies, and social groups shall pay according to relevant national regulations. Welfare fees withdrawn or temporary living difficulties subsidies paid to employees from labor union funds are exempt from personal income tax. The following income does not fall within the scope of tax-free welfare fees and should be incorporated into wages and salaries for calculation of personal income tax:
① Payment to individuals from welfare fees and trade union funds that exceed the proportion or base prescribed by the state Various subsidies and subsidies;
② Subsidies and allowances paid to employees of the unit from welfare fees and labor union funds for everyone;
③ The unit purchases cars, Expenditures such as housing, computers, etc. that are not in the nature of temporary living difficulties subsidies.
(7) Pensions and relief funds (referring to the living hardship subsidies paid to individuals by the civil affairs department) are exempt from personal income tax.
(8) Insurance compensation paid by insurance companies is exempt from personal income tax.
(9) Military personnel’s transfer fees and demobilization fees are exempt from personal income tax.
(10) Settlement allowance and severance allowance paid to cadres and employees in accordance with unified national regulations (referring to individuals who meet the retirement conditions stipulated in the "Interim Measures of the State Council on Retirement and Retirement of Workers" and are stipulated in this measure) Standard severance pay), retirement pay, retirement pay, and retirement living allowance are exempt from personal income tax.
(11) Income that is stipulated as tax-free in international conventions and agreements signed by our government is exempt from personal income tax.
(12) Housing provident funds, unemployment insurance premiums, medical insurance premiums, and basic pension insurance premiums that enterprises and individuals withdraw and actually pay to designated financial institutions in accordance with the proportions stipulated by the state or local government are not included in the personal calculation Wage and salary income for the current period are exempt from personal income tax. For housing provident funds, unemployment insurance premiums, medical insurance premiums, and basic pension insurance premiums that exceed the proportions stipulated by the state or local government, the excess portion shall be incorporated into the individual's current wage and salary income and personal income tax shall be calculated. Individuals are exempt from personal income tax when they receive housing provident funds, unemployment insurance premiums, medical insurance premiums, and basic pension insurance benefits originally withdrawn.
(13) According to the provisions of Guoshuifa (1999) No. 43, laid-off employees engaged in community resident services shall receive tax registration certificates from their business income and labor remuneration income if they are engaged in self-employment. Those who engage in independent labor services will be exempted from personal income tax for 3 years from the date when they hold a laid-off certificate and register it with the local competent tax authorities; however, after the expiration of the tax exemption period in the first year, the competent tax authorities at or above the county level will determine the tax exemption entities and scope. It will be reviewed year by year according to regulations, and those who meet the conditions can continue to be exempted from tax for 1 to 2 years.
(14) According to the provisions of Guo Shui Han Fa (1997) No. 087, the income from young crop compensation paid by the land acquisition unit to the land contractor during the land acquisition process is temporarily exempt from personal income tax.
(15) According to the provisions of the State Compensation Law, if state agencies and their staff illegally exercise their powers, infringe upon the legitimate rights and interests of citizens, and cause damage, the compensation obtained by the victim in accordance with the law will not be taxed.
(16) According to the provisions of Guoshuifa (1994) No. 089, the following subsidies and legal subsidies that are not wages or salaries, or income that is not part of the taxpayer’s own wages or salary income items, are not taxable : ① One-child subsidy; ② Subsidies, allowance differences and non-staple food subsidies for family members that are not included in the total basic salary of the civil servant salary system; ③ Childcare subsidy; ④ Travel allowance and missed meal allowance (referring to the provisions of the financial department, personal reasons If the employee works in urban or suburban areas and cannot eat at the workplace or when he returns, and he really needs to eat out, a missed meal fee will be paid according to the prescribed standards based on the actual number of missed meals).
(17) According to the provisions of Cai Shui Zi (1998) No. 061, the income obtained by individuals from the transfer of stocks of listed companies is temporarily exempt from personal income tax.
(18) According to the provisions of Guoshuifa (1994) No. 127 and Caishuizi (1998) No. 012, when individuals purchase social welfare prize-winning donation tickets and sports lottery tickets, the income from a single winning shall not exceed 10,000. Those with an amount exceeding RMB 10,000 are temporarily exempted from personal income tax, and those exceeding RMB 10,000 shall be levied personal income tax according to regulations.
(19) According to the provisions of (94) Cai Shui Zi Document No. 020, the following income is temporarily exempt from personal income tax: ① Rewards received by individuals for reporting or assisting in the investigation of various illegal and criminal activities; ② Individual handling Procedures for withholding and repaying taxes, and withholding fees obtained in accordance with regulations; ③Income obtained from the transfer of a house that has been used by an individual for more than 5 years and is the only home used for family living; ④reached the retirement age, but is really required by work For senior experts who have appropriately extended their retirement age (referring to experts and scholars who enjoy special government allowances issued by the state), their wages and salary income during the extended retirement period shall be regarded as retirement wages and retirement wages and are exempt from personal income tax.
(20) According to the provisions of Cai Shui Zi (1999) No. 278, in order to encourage individuals to exchange for housing, taxpayers who sell their own houses and plan to repurchase their houses at market prices within one year after the sale of their existing houses , the personal income tax payable by an individual on the sale of his current home may be fully or partially exempted depending on the value of his new home purchase. The specific methods are as follows:
① The personal income tax payable by an individual on the sale of his current home, Before going through the property transfer procedures, a tax deposit must be paid to the local competent tax authority. When collecting tax deposits, the tax authorities should formally issue a "People's Republic of China and State Tax Deposit Receipt" to the taxpayer and include it in a special account for storage.
② If an individual purchases a new home within one year after selling his current home, the corresponding tax deposit will be refunded according to the purchase amount. If the purchase amount is greater than or equal to the sales amount of the original house (if the original house is a purchased public house, the sales amount of the original house shall be deducted from the income paid to the finance or original property rights unit in accordance with regulations, the same below), the tax deposit will be fully refunded; If the amount is less than the original housing sales, the tax deposit will be refunded according to the proportion of the purchase amount to the original housing sales, and the balance will be paid to the state treasury as personal income tax.
③If an individual does not purchase a new home within one year after selling his current home, all the tax deposit paid will be paid to the state treasury as personal income tax.
④When individuals apply for refund of tax deposit, they should provide legal and valid house sales and purchase contracts and other supporting materials required by the competent tax authorities to the competent tax authorities. Handle tax deposit refund procedures.
⑤ Individuals who sell or purchase housing across administrative regions and are eligible for refund of tax deposit should apply to the tax authority in charge of the place where the tax deposit was paid for refund of tax deposit.
(21) According to the provisions of Guoshuifa (1999) No. 125, scientific research institutions (referring to the natural science research institutions established and approved in accordance with the provisions of Zhongbianbanfa (1997) No. 326), colleges and universities (referring to full-time ordinary institutions of higher learning, including universities, vocational schools and colleges). Individual rewards for scientific and technological achievements transformed into job-related scientific and technological achievements in the form of shares or capital contribution ratios, etc., to individual scientific and technological personnel (regular employees of scientific research institutions and institutions of higher learning when necessary). , after review by the competent tax authorities, personal income tax will not be levied temporarily. The awarding unit or the winner shall provide the competent tax authorities with the relevant departments’ regulations on certain issues regarding investment in high-tech achievements [Guoke Fa Zheng Zi (1997) No. 326] and the “Regulations on Certain Issues Contributing Investment in High-tech Achievements” [Guoke Fa Zheng Zi (1997) No. 326] and "Provisions on Issues" Implementation Measures" (Guoke Fa Zheng Zi (1998) No. 171) issued the "Contributor Share High-tech Achievements Certification", the enterprise registration procedures handled by the industrial and commercial administrative departments and the registration procedures with the industrial and commercial administrative authorities. The evaluation agency’s technical achievement value evaluation report and confirmation letter. Those who fail to provide the above information shall not enjoy the preferential policy of temporarily suspending the collection of personal income tax. When the winner receives dividends based on the proportion of shares and capital contribution, personal income tax shall be levied on the income according to the taxable item of "interest, dividend, and bonus income"; when the winner transfers the equity and capital contribution ratio, the income shall be levied on the taxable item of "income from property transfer" For personal income tax, the original value of the property is zero.
(22) In accordance with the provisions of the "Individual Income Tax Law of the People's Republic of China" and the "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China", the following items can be exempted from personal income tax upon approval , the range and duration of tax reductions shall be determined by the people's governments of each province, autonomous region, and municipality directly under the Central Government:
① Income of disabled, orphaned persons and dependents of martyrs;
② Heavy losses caused by natural disasters;
③Other exemptions approved by the financial department of the State Council. Guo Shui Han (1999) No. 329 further clarifies that the income of the above-mentioned disabled, orphans and martyrs who are approved by the provincial people's government to reduce personal income tax is limited to labor income. The specific income items are: wages and salary income; individual industrial and commercial households Income from production and operations; income from contracting and leasing operations for enterprises and institutions; income from labor remuneration; income from author remuneration; income from royalties. Other income cannot be exempted from personal income tax.
(23) The "Individual Income Tax Law of the People's Republic of China" stipulates that income from author remuneration can be reduced by 30% according to the tax payable.
(24) Whether personal income tax is levied on interest or dividends obtained by individuals from grassroots supply and marketing cooperatives and rural credit cooperatives shall be reported to the government by the taxation bureaus of the provinces, autonomous regions, and municipalities directly under the Central Government for determination, and shall be reported to the Ministry of Finance and the National Taxation Bureau Registration with the General Administration.
(25) According to the provisions of (80) Cai Shui Wai Zi Document No. 196, the following foreign exchange income remitted from overseas are exempt from personal income tax: ① Overseas Chinese remittances remitted from overseas to my country to support their families; ② Foreign exchange transferred from overseas when inheriting foreign inheritance; ③ Retrieval of foreign exchange transferred from unfrozen funds in the United States.
(26) In accordance with the provisions of the "Individual Income Tax Law of the People's Republic of China", "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China" and Guoshuifa (1994) No. 148, The following income of overseas personnel is exempt from personal income tax: ① The income of diplomatic representatives, consular officers and other personnel of embassies and consulates of various countries in China that should be exempted from tax in accordance with the relevant laws of my country.
② For individuals who have no residence in China, but who have lived in China continuously or cumulatively for no more than 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 employer’s institutions or places in China. The burdened part is exempt from personal income tax.
(27) According to the provisions of (94) Cai Shui Zi No. 020, Guo Shui Han Fa (1996) No. 417, Guo Shui Fa (197) 054 and other documents, the following income of overseas persons is temporarily exempted from personal taxation Income tax:
① Reasonable housing subsidies, food subsidies, relocation expenses, and laundry expenses obtained by foreign individuals in non-cash forms or in the form of actual reimbursement are temporarily exempt from personal income tax. For housing subsidies, food subsidies, and laundry expenses, the taxpayer shall provide the competent tax authority with the validity of the above-mentioned subsidies when filing a tax return for wages and salaries in the month following the month in which the above-mentioned subsidies are first obtained or the amount or payment method of the above-mentioned subsidies changes. The certificate shall be approved by the competent tax authority to confirm tax exemption. For relocation expenses, the taxpayer should provide valid certificates, which will be reviewed and determined by the competent tax authorities, and the reasonable part will be tax-free.
② Domestic and overseas business trips subsidies obtained by foreign individuals based on reasonable standards are temporarily exempt from personal income tax. For such subsidies, taxpayers should provide vouchers for transportation and accommodation expenses for business trips or relevant plans for business trips arranged by the enterprise, and the tax authorities will confirm tax exemption.
③ Family visit expenses, language training expenses, children’s education expenses, etc. obtained by foreign individuals shall be temporarily exempted from personal income tax if they are deemed reasonable upon review and approval by the local tax authorities. For family visit expenses, the taxpayer should provide a voucher (copy) for transportation expenses for family visits, which will be reviewed by the competent tax authority. The portion actually used for family visits and the number of family visits per year and the payment standard are reasonable will be exempted from tax. For language training fees and children’s education fees, taxpayers should provide the expenditure vouchers and period certification materials for the above-mentioned education in China, which shall be reviewed by the competent tax authorities. For language training in China and children’s education in China, they must obtain Language training fees and children’s education fees are subsidized, and the portion within a reasonable amount is tax-free.
④ Dividends and bonus income received by foreign individuals from foreign-invested enterprises are temporarily exempt from personal income tax.
⑤ The wages and salaries of foreign experts who meet national regulations are temporarily exempt from personal income tax. Specifically refers to:
A. The wages and salaries of foreign experts directly dispatched by the World Bank to work in my country according to the World Bank's special loan agreement are temporarily exempt from personal income tax. The so-called "direct dispatch" means that the World Bank signs a technical service agreement with the expert or signs a technical service agreement with the expert's employer, and designates the expert to provide technical services for the relevant project, and the World Bank pays the foreign expert's wages and salaries. When going through tax exemption procedures, the foreign expert should provide the relevant contract signed with the World Bank and proof that his wages and salaries are paid and borne by the World Bank.
B. The wages and salaries of experts directly dispatched by the United Nations to work in our country are temporarily exempt from personal income tax. The so-called "direct dispatch" means that the United Nations organization signs a technical service agreement with the expert or signs a technical service agreement with the expert's employer, and designates the expert to provide technical services for the relevant project, and the United Nations organization pays the foreign expert's wages and salaries. United Nations organizations refer to relevant organizations of the United Nations, including the United Nations Development Program, the United Nations Population Fund, the United Nations Children's Fund, the United Nations Department of Technical Cooperation, the United Nations Industrial Development Organization, the Food and Agriculture Organization of the United Nations, the World Food Program, the World Health Organization, and the World Meteorological Organization organizations, UNESCO, etc. When going through tax exemption procedures, the foreign expert should provide the relevant contract signed with the United Nations organization and proof that his wages and salaries are paid and borne by the United Nations organization.
C． The wages and salaries of experts working in China for United Nations assistance projects are temporarily exempt from personal income tax.
D. The wages and salaries of experts sent by aiding countries to our country to work specifically for the country's free aid projects are temporarily exempt from personal income tax.
E. Cultural and educational experts who have come to China within two years under a cultural exchange project signed by the two governments and whose wages and salaries are borne by the country will be temporarily exempt from personal income tax on their wages and salaries.
F. According to the international exchange program of my country's universities and colleges, experts who come to work in China and whose wages and salaries are borne by the country are temporarily exempt from personal income tax on their wages and salaries.
G. Experts who come to work in China through private scientific research agreements and whose wages and salaries are borne by the government of that country are temporarily exempt from personal income tax on their wages and salaries.
(28) According to regulations, foreign individuals holding B shares or overseas shares (including H shares) receive dividends (dividends) from the Chinese domestic enterprise that issued the B shares or overseas shares. Personal income tax is temporarily exempted.
(29) Guo Shui Han (2002) No. 146 "Approval of the State Administration of Taxation on Certain Business Issues of Personal Income Tax" stipulates: The property leasing income obtained by individuals leasing property shall be calculated and paid to the Personal Income Tax Bureau. When doing so, the following expenses should be deducted in sequence:
①Taxes paid during the property leasing process;
②The actual repair costs of the rental property borne by the taxpayer;
③ Expenses deduction standards stipulated in tax laws.