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

(1 September 1980 10, the third session of the fifth national people's congress passed the decision on amending the individual income tax law of the people's Republic of China according to 1993 1 October 31the fourth session of the eighth the NPC Standing Committee. The Decision on Amending the Individual Income Tax Law of the People's Republic of China was revised for the second time on August 30th, 1999 in the 11th session of the 9th the NPC Standing Committee, and was revised for the third time according to the Decision on Amending the Individual Income Tax Law of the People's Republic of China on October 27th, 2005/kloc-0).

Article 1 Individual income tax shall be paid in accordance with the provisions of this Law for the income obtained by individuals who have domicile in China or have resided in China for one year or more without domicile from inside and outside China.

Individuals who have neither domicile nor residence in China, or who have lived in China for less than one year, shall pay individual income tax on their income from China in accordance with the provisions of this Law.

Article 2 Individual income tax shall be payable on the following personal income:

1. Income from wages and salaries;

II. Income from production and operation of individual industrial and commercial households;

III. Income from contracted operation and lease operation of enterprises and institutions;

4. Income from remuneration for labor services;

5. Income from remuneration;

6. Income from royalties;

7. Income from interest, dividends and bonuses;

8. Income from property lease;

9. Income from property transfer;

X. Accidental income;

Eleven, other income determined by the finance department of the State Council.

Article 3 The tax rate of individual income tax:

1. Income from wages and salaries shall be subject to an excessive progressive tax rate of 5% to 45% (the tax rate table is attached).

Two, the income from the production and operation of individual industrial and commercial households and the income from the contracted operation and lease operation of enterprises and institutions shall be subject to the excessive progressive tax rate of 5% to 35% (the tax rate table is attached).

3. The income from remuneration for authors shall be taxed at a proportional rate of 20%, with a reduction of 30% according to the taxable amount.

4. Income from remuneration for labor services shall be subject to the proportional tax rate of 20%. If the one-time income from labor remuneration is abnormally high, an additional levy may be imposed, and the specific measures shall be formulated by the State Council.

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

Article 4 Individual income from the following items shall be exempted from individual income tax:

1. Bonuses in science, education, technology, culture, health, sports, environmental protection, etc. awarded by the provincial people's government, the State Council ministries and commissions, China People's Liberation Army units at or above the army level, and foreign organizations and international organizations;

2. Interest on national debt 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 indemnity;

Six, military personnel transfer fees, demobilization fees;

Seven, in accordance with the unified provisions of the state to cadres and workers, resettlement fees, retirement fees, retirement wages, retirement wages, retirement living allowance;

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

Nine, the China municipal government to participate in the international conventions and agreements stipulated in the tax exemption income;

Ten, approved by the finance department of the State Council tax-free income.

Article 5 Under any of the following circumstances, individual income tax may be reduced upon approval:

1. Income from disabled, lonely and elderly people and martyrs;

Two, due to serious natural disasters caused heavy losses;

Three, other tax cuts approved by the finance department of the State Council.

Article 6 Calculation of taxable income:

1. Income from wages and salaries is the taxable income, which is the balance of the monthly income after deducting expenses of 1,600 yuan.

Two, the income from the production and operation of individual industrial and commercial households, with the total income of each tax year, after deducting costs, expenses and losses, is the taxable income.

Three, the income from contracted operation and leased operation of enterprises and institutions, with the total income of each tax year, after deducting the necessary expenses, is the taxable income.

Four, income from remuneration for labor services, income from royalties, income from property leasing, each income does not exceed 4,000 yuan, a deduction of 800 yuan; If it is more than 4,000 yuan, 20% of the expenses shall be deducted, and the balance shall be taxable income.

Five, the income from the transfer of property, after deducting the original value of the property and reasonable expenses from the income from the transfer of property, is the taxable income.

Six, interest, dividends, bonuses, accidental income and other income, the amount of income for each taxable income.

The part donated by individuals to education and other public welfare undertakings shall be deducted from taxable income in accordance with the relevant provisions of the State Council.

For taxpayers who have no domicile in China but get income from wages and salaries in China, and taxpayers who have domicile in China but get income from wages and salaries outside China, additional deductions can be determined according to their average income level, living standard and exchange rate changes. The applicable scope and standards of additional deductions are stipulated by the State Council.

Article 7 Taxpayers shall be allowed to deduct the personal income tax paid abroad from the tax payable for income obtained from outside China. However, the deduction shall not exceed the taxable amount of the taxpayer's overseas income calculated in accordance with the provisions of this Law.

Article 8 For individual income tax, the income earners shall be the taxpayers, and the units or individuals that pay the income shall be the withholding agents. If the personal income exceeds the amount specified in the State Council, the taxpayer obtains wages and salaries from two or more places or has no withholding agent, and there are other circumstances specified in the State Council, the taxpayer shall file tax returns in accordance with the provisions of the state. The withholding agent shall, in accordance with the provisions of the state, handle the declaration of full withholding of all employees.

Article 9 The monthly tax withheld by withholding agents and the monthly tax payable by taxpayers shall be turned over to the state treasury within seven days of the following month, and the tax return shall be submitted to the tax authorities.

Taxes payable on wages and salaries shall be levied on a monthly basis, and the withholding agent or taxpayer shall pay them into the state treasury within seven days of the following month and submit tax returns to the tax authorities. Taxes payable on wages and salaries of specific industries can be calculated on an annual basis and paid in advance on a monthly basis. The specific measures shall be formulated by the State Council.

The tax payable on the income from production and business operation of individual industrial and commercial households shall be calculated on an annual basis and paid in advance in monthly installments. The taxpayer shall pay the tax in advance within seven days of the following month, and the tax shall be settled within three months after the end of the year, with the overpayment and the underpayment.

The tax payable on the income from contracted operation and leased operation of enterprises and institutions shall be calculated on an annual basis, and the taxpayer shall pay it into the state treasury within 30 days after the end of the year and submit a tax return to the tax authorities. Taxpayers who obtain income from contracted operation or leased operation by stages within one year shall pay in advance within seven days after each income is obtained, and make final settlement within three months after the end of the year, and refund more and make up less.

Taxpayers who obtain income from outside China shall, within 30 days after the end of the year, pay the tax payable to the state treasury and submit a tax return to the tax authorities.

Article 10 The calculation of various incomes shall be in RMB. If the income is in foreign currency, it shall be converted into RMB to pay taxes according to the foreign exchange rate stipulated by the state administration of foreign exchange.

Article 11 A handling fee of 2% shall be paid to the withholding agent according to the tax withheld.

Article 12 The time and method for levying individual income tax on interest income from savings deposits shall be stipulated by the State Council.

Thirteenth individual income tax collection and management, in accordance with the provisions of the "people's Republic of China tax collection and management law".

Article 14 the State Council shall formulate implementation regulations in accordance with this Law.

Article 15 This Law shall come into force as of the date of promulgation.