According to the Notice of the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on the Income Tax of Partners in Partnership Enterprises (Caishui [2008] 159), the partnership enterprise takes each partner as the taxpayer. If the partners of a partnership are natural persons, they shall pay individual income tax; If the partners are legal persons or other organizations, they shall pay enterprise income tax.

The income from the production and operation of a partnership and other income shall be divided first and then taxed. The specific taxable income shall be calculated in accordance with the relevant provisions of the Provisions on the Collection of Individual Income Tax for Investors in Sole proprietorship and Partnership Enterprises (Caishui [2000] No.91) and the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Relevant Issues Concerning the Adjustment of the Pre-tax Deduction Standard of Individual Income Tax for Sole proprietorship and Partnership Enterprises (Caishui [2008] No.65).

According to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Basis of Implementation Standards (Guo [20065438+0] No.84), the interest or dividends and bonus income returned by foreign investment of a sole proprietorship enterprise or partnership enterprise shall not be incorporated into the enterprise income, but shall be separately used as the interest, dividend and bonus income obtained by investors, and personal income tax shall be calculated and paid according to the tax item of "interest, dividend and bonus income".

If foreign investment in the name of a partnership is divided into interest, dividends and bonus income, the interest, dividends and bonus income of each investor shall be determined in accordance with the spirit of Article 5 of the Notice, and personal income tax shall be calculated and paid according to the taxable items of "interest, dividend and bonus income" respectively. ?

Therefore, when a partnership invests in a resident enterprise and the invested enterprise makes a profit distribution resolution, the partnership enterprise shall confirm the investment income and take two partners as taxpayers. The investment income obtained from the distribution of resident enterprises can be deducted from the taxable income when calculating the enterprise income tax if it meets the tax-free income conditions stipulated by the enterprise income tax; Individual income tax shall be paid for the investment income obtained by individual shareholders according to the tax items of "interest, dividend and bonus income", and the relevant taxes shall be withheld and remitted by the paying enterprise according to law.

Personal income tax is the general name of legal norms that adjust the social relationship between tax authorities and natural persons (residents and non-residents) in the process of personal income tax collection and management.

Britain is the first country to collect personal income tax. 1799, Britain began to try to collect personal income tax at different tax rates, and it became a fixed tax in Britain until 1874.

Taxpayers of individual income tax include resident taxpayers and non-resident taxpayer. Resident taxpayers have the obligation to pay taxes in an all-round way, and must pay individual income tax on all their income inside and outside China; Non-resident taxpayer only pays individual income tax on its income derived from China.

Personal income tax is a kind of income tax levied by the state on the income of its own citizens, individuals living in its own territory and overseas individuals from its own country. In some countries, personal income tax is the main tax, which accounts for a large proportion of fiscal revenue and has a great impact on the economy.

On June 9, 20 18, the draft amendment to the individual income tax law was submitted to the third session of the 13th the National People's Congress Standing Committee (NPCSC) for deliberation, which was the seventh overhaul since the promulgation of the 1980 tax law.

References:

Baidu encyclopedia-personal income tax