Legal Analysis

For operating income, the taxable income is the balance after deducting costs, expenses and losses from the total income in each tax year, and the applicable rate is 5% to 100%. An excess progressive tax rate of thirty-five percent. When a taxpayer obtains business income, personal income tax is calculated on an annual basis. The taxpayer shall submit a tax return to the tax authorities within 15 days after the end of each month or quarter and prepay the tax; on March 31st of the following year in which the income is obtained, Complete the final settlement and payment beforehand. Individuals calculate the amount of personal income tax payable based on the items and amounts of taxable income they obtain, and truthfully fill out the corresponding personal income tax return form within the reporting period stipulated in the tax law, submit it to the tax authorities, and declare and pay personal income tax. After the end of a tax year, taxpayers shall truthfully fill in the corresponding personal income tax return within the reporting period stipulated in the tax law based on the taxable income items, amounts, tax payable, tax paid, and tax rebates obtained throughout the year. form, submit it to the tax authorities and handle corresponding matters.

Legal Analysis

"Personal Income Tax Law of the People's Republic of China" Article 6 Calculation of taxable income: (1) The comprehensive income of resident individuals shall be calculated on a per-person basis. The taxable income is the balance after deducting RMB 60,000 in expenses, special deductions, special additional deductions and other deductions determined in accordance with the law from the income in the tax year. (2) For wages and salaries of non-resident individuals, the taxable income shall be the balance after deducting RMB 5,000 in expenses from the monthly income; income from remuneration for services, author’s remuneration, and royalties shall be calculated based on the amount of each income is taxable income. (3) For operating income, the taxable income shall be the balance after deducting costs, expenses and losses from the total income in each tax year. (4) For income from property leasing, if the income does not exceed 4,000 yuan per time, 800 yuan of expenses will be deducted; if the income exceeds 4,000 yuan, 20% of the expenses will be deducted, and the balance shall be the taxable income. (5) For income from property transfer, the taxable income shall be the balance of the income from the transfer of property minus the original value of the property and reasonable expenses. (6) For interest, dividends, bonus income and incidental income, the amount of each income shall be the taxable income. Income from labor remuneration, author remuneration, and royalties shall be the balance after deducting 20% ??of the expenses. The amount of income from royalties is calculated at a reduced rate of 70%. When individuals donate their income to public welfare undertakings such as education, poverty alleviation, and relief for those in need, the portion of the donation that does not exceed 30% of the taxable income declared by the taxpayer can be deducted from the taxable income; the State Council stipulates that If donations to public welfare charities are fully deductible before tax, such provisions shall apply. The special deductions specified in the first paragraph of paragraph 1 of this article include basic pension insurance, basic medical insurance, unemployment insurance and other social insurance premiums and housing provident funds paid by individual residents in accordance with the scope and standards prescribed by the state; special additional deductions include children’s education , continuing education, serious illness medical treatment, housing loan interest or housing rent, elderly care and other expenses, the specific scope, standards and implementation steps shall be determined by the State Council and reported to the Standing Committee of the National People's Congress for filing.