Implemented on September 20 1 1 year 1 day, and the tax exemption for China mainland was adjusted to 3,500 yuan. 20 12 on July 22nd, the central government made technical preparations for the reform of "collecting individual income tax by family".
1, statutory tax exemption items. According to the current individual income tax law, individuals are exempt from individual income tax on the following incomes: bonuses in science, education, technology, culture, health, sports and environmental protection awarded by provincial governments, ministries and commissions of the State Council and units of the People's Liberation Army of China at or above the military level, as well as foreign organizations and international organizations; Interest on national debt and financial bonds issued by the state. That is, the interest income obtained by individuals holding bonds issued by the People's Republic of China and the Ministry of Finance of the People's Republic of China and the interest income obtained by financial bonds issued with the approval of the State Council; Subsidies and allowances issued in accordance with the unified provisions of the state, that is, special government allowances, academician allowances and senior academician allowances issued in accordance with the provisions of the State Council, and other subsidies and allowances exempted from personal income tax in the State Council; Welfare funds, pensions, relief funds. The welfare fund refers to the living allowance paid to individuals from the welfare funds retained by enterprises, institutions, state organs and social organizations or trade union funds according to the relevant provisions of the state; The relief fund refers to the subsidy paid by the civil affairs department of the state to individuals for living difficulties; Insurance indemnity; Military personnel's transfer fee and demobilization fee; In accordance with the unified provisions of the state, cadres and workers are given resettlement fees, resignation fees, retirement wages, retirement wages and retirement living allowances; Income from diplomatic representatives, consular officials and other personnel of embassies and consulates in China granted tax exemption in accordance with the relevant laws and regulations of China; Income exempted from tax as stipulated in international conventions and agreements signed by the China government; Income exempted from tax with the approval of the financial department of the State Council. It is a general project, which is mainly based on some possible situations that really need tax exemption. Such as one-child subsidies and child care subsidies; Bonuses obtained by individuals for reporting and investigating various illegal and criminal acts; Personal handling fees for withholding and paying taxes according to regulations; Income from personal transfer of personal use for more than 5 years and being the only family living room; For senior experts who have reached retirement age, but are appropriately extended due to work needs, their wages and salary income during the extended retirement period shall be regarded as retirement wages and retired wages shall be exempted from personal income tax.
2. Statutory reduction projects. According to the regulations for the implementation of the Individual Income Tax Law, taxpayers may reduce their individual income tax upon approval in any of the following circumstances, and the scope and duration of the reduction shall be stipulated by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government: income from disabled, lonely and elderly people and martyrs; Causing heavy losses due to serious natural disasters; Other tax reductions approved by the finance department of the State Council.
3. Other relevant policies. In the process of implementing individual income tax, China has introduced relevant preferential tax policies according to the needs of economic and political development in various periods. For example, personal income tax is temporarily exempted from the income from stock transfer of individuals in the domestic secondary securities market; Preferential policies shall be implemented for demobilized military cadres who are self-employed, their dependents and laid-off and reemployed personnel.
Seven elements of tax composition:
1, the taxpayer, also known as the taxpayer, refers to the social organizations and individuals directly obligated to pay taxes as stipulated in the tax law, and is the undertaker of tax obligations. Taxpayers include natural persons and legal persons;
2. The object of taxation, also known as the object of taxation, refers to what is taxed according to the tax law;
3. Tax rate, which is the ratio between the taxable amount and the taxable object, is the scale for calculating the taxable amount and reflects the degree of taxation. There are three basic forms of tax rate: proportional tax rate, progressive tax rate (full progressive and excessive progressive) and fixed tax rate;
4, the tax link, refers to the commodity in the whole circulation process in accordance with the provisions of the tax law should pay taxes;
5. The tax payment period refers to the specific time when the taxpayer pays the tax to the tax authorities as stipulated in the tax law. Generally, there are two kinds of collection according to time and schedule;
6. The place of tax payment refers to the place where the tax is paid. Generally, it is the taxpayer's domicile, but it is also stipulated in the place where the business takes place;
7, tax incentives, refers to the provisions of the tax law for some specific taxpayers or tax objects to be exempted from part or all of the tax obligations. From the purpose, there are two kinds: caring and encouraging;
Legal basis:
Law of the People's Republic of China on the Administration of Tax Collection
Article 3 The levying and ceasing of taxes, as well as the reduction, exemption, refund and supplementary payment of taxes, shall be implemented in accordance with the provisions of the law; Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council.
No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions that are inconsistent with tax laws and administrative regulations without authorization.