People's Republic Of China Law On Individual Income Tax

Original Language Title: 中华人民共和国个人所得税法

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People's Republic of China President, 48th

                   The Standing Committee of the national people's Congress to amend of People's Republic of China Law on individual income tax, the decision has been made by People's Republic of China the 21st meeting of the Standing Committee of the 11th NPC on June 30, 2011, are hereby promulgated and take effect on September 1, 2011.

                       People's Republic of China President Hu Jintao

The June 30, 2011

Standing Committee of the national people's Congress on revising the People's Republic of China Law on personal income tax decision

(June 30, 2011 adopted at the 21st meeting of the Standing Committee of the 11th NPC)

The 21st meeting of the Standing Committee of the 11th NPC decision on the People's Republic of China personal income tax Act read as follows: First, the article is revised as follows: "wage and salary income, excess progressive rates, the tax rate 3% to 45% (tax rate table attached).

” Second, sixth, first modify the first paragraph as follows: "wage and salary income, the balance of income after the deduction of costs 3,500 Yuan a month, is taxable.



Of three, Nineth "7th" is amended as "the 15th".

Four, personal income tax rates table (wage and salary income applies) is revised as follows:

Series of monthly taxable income tax rate (%)

   1 not more than 1500 3

2 more than 1500 to 4500 Yuan part 10

3 more than 4500-9000 Yuan part 20

4 more than 9000 to 35000 Yuan part 25

5 more than 35000 to 55000 Yuan part 30

6 more than 55000 to 80000 Yuan part 35

7 more than 80000 part 45 (Note: the full moon to in this table refers to the taxable in accordance with the provisions of this law article sixth, with monthly income amount less the cost of 3,500 Yuan and the balance after additional deductions for expenses.



Five table II, personal income tax rates (individual production, operation derived by and applicable to income from contracted or leased operation of enterprises) is revised as follows:

 Series year taxable income tax rate (%)

 1 no more than 15000 5

 2 more than 15000 to 30000 Yuan part 10

 3 more than 30000 to 60000 Yuan part 20

 4 more than 60000-100000 Yuan, part 30

5 more than 100000 parts 35 (Note: this annual taxable income is mentioned in table in accordance with the provisions of this law article sixth, to total taxable income deduction of costs, fees and loss of balance.



This decision shall take effect on September 1, 2011.





People's Republic of China Law on personal income tax in accordance with this decision be revised and republished.

People's Republic of China Law on individual income tax

(September 10, 1980 session of the national people's Congress adopted at the third meeting

According to October 31, 1993 session of the fourth meeting of the Standing Committee of the national people's Congress to amend People's Republic of China decided for the first time to the individual income tax law amendment

On August 30, 1999, the ninth session of the 11th meeting of the Standing Committee of the national people's Congress to amend People's Republic of China income tax law decision on second amendment

October 27, 2005, deputies of the 18th meeting of the Standing Committee on the changes of People's Republic of China decision III of the personal income tax law amendment

June 29, 2007, deputies of the 28th meeting of the Standing Committee on the changes of People's Republic of China income tax law, the decision of the fourth amendment

December 29, 2007th the 31st meeting of the Standing Committee of the national people's Congress to amend People's Republic of China income tax law, the decision of the fifth amendment

On June 30, 2011, the 21st meeting of the Standing Committee of the 11th NPC on modified People's Republic of China personal income tax law, the decision of the Sixth Amendment)

First are domiciled within the territory of China or individuals without residence and resided in the territory for a year, and income derived from within and outside China, in accordance with the provisions of this law shall pay individual income tax.

Without residence within the territory of China without residence or domicile in the territory of individuals residing in less than a year, income derived within China, in accordance with the provisions of this law shall pay individual income tax.

Article the following personal income, personal income tax payable:

Income from wages and salaries;

Second, individual income from production and operation;

Third, the income from contracted or leased operation of enterprises;

Four, income from remuneration;

Five, lessons learned from the remuneration;

Six, royalty income;

Seven, interest, dividend, dividend income;

Eight, the lease of property;

Nine, from transfer of property;

Ten, contingent income;

XI other income taxes established by the financial Department of the State Council.

Third personal income tax rates:

First, wages and salaries, for progressive tax rates, tax rates ranging from 3% to 45% (tax rate table attached).

Second, production and management of individual industrial and commercial households income and income from contracted or leased operation of enterprises, for 5% to 35% excess progressive rates (tax rate table attached).

Third, the royalties received, shall be taxed, at 20% and 30% per cent reduction of taxable. Four, income from remuneration, shall be taxed, tax rate of 20%.

Income from remuneration for a high income, bonus collection can be implemented, and the specific measures formulated by the State Council.

Five, royalty income, interest, dividends, dividend income, income from lease of property, income from transfer of property, contingent income and other income shall be taxed, tax rate of 20%.

Fourth the following personal income, exempt from personal income tax:

Ministries, provincial people's Government, the State Council and the Chinese people's Liberation Army units, and issued by foreign organizations, international organizations, science, education, technology, culture, health, sports, environmental protection and other bonuses;

Second, interest on Treasury bonds and financial bonds issued by the State;

Third, the subsidies and allowances issued in accordance with national unity;

Four, welfare benefits, pensions and benefits;

Five, insurance indemnities;

Six, the military military severance pay, severance pay;

Seven, according to the national unity required to be given to cadres, workers and financial relief, severance pay and retirement pay, retirement pay, retirement living;

Eight, shall be exempt from tax in accordance with relevant Chinese laws from various foreign embassies, consulates, diplomatic representatives, consular officers and other personnel of the proceeds;

Nine, the Government of China to participate in international conventions, as stipulated in the agreement signed by tax exempt income;

Ten, the financial Department of the State Council approved the tax-free income.

Fifth, one of the following circumstances, approved to reduce personal income tax:

One, people with disabilities, orphans, and martyred by officers;

Second, because of serious natural calamities have caused heavy losses;

Third, the other tax cuts approved by the financial Department of the State Council.

Article sixth taxable income calculation:

First, wages and salaries, the balance of income after the deduction of costs 3,500 Yuan a month, is taxable.

Second, self-employed income from production and business, to total taxable income deduction of costs, fees and loss of balance, is taxable.

Third, the income from contracted or leased operation of enterprises and institutions, with total income for each taxable year, balance after deduction of necessary expenses, as taxable.

Four, income from remuneration, royalties income, royalty income, income from lease of property, each no more than 4,000 yuan, abatement costs 800 Yuan; more than 4,000 yuan, deduct the cost of 20%, whose balance is taxable.

Five, from transfer of property, transfer of property revenues less the original value of the property and reasonable fee, balance, is taxable.

Six, interest, dividends, bonuses, occasional income and other income, and income is taxable at a time.

Personal income for the part of education and other public welfare donation, in accordance with the relevant provisions of the State Council is deducted from taxable income.

Within Chinese territory without residence within the territory of China to make wage and salary income taxpayer and has residence in the territory of China and outside of China's wage and salary income taxpayer, based on the average income levels, living standards and changes in the exchange rate for additional deduction for expenses, additional deductions for expenses coverage and standards prescribed by the State Council. Article seventh taxpayer income derived from sources outside China, grant deducted from tax payable has been paid income taxes.

But the deduction may not exceed the taxpayer overseas income tax payable shall be calculated according to the provisions of this law. Article eighth of personal income tax in order to artificially derived from the taxpayer to cover the proceeds of units or individuals shall be the withholding. Personal income exceed the amount provided by the State Council, made in two or more wage and salary income or no withholding, as well as other circumstances as prescribed by the State Council, taxpayers should file tax returns according to state regulations.

Withholding agents shall, in accordance with provisions of staff declare the full amount.

Nineth withholding monthly tax deduction, self-reporting monthly tax payable, shall be paid to the State Treasury in the 15th of the next month, and submitting the tax return to the tax authority. Income from wages and salaries payable taxes, levied by the month, by withholding or the taxpayer paid to the State Treasury in the 15th of the next month, and submitting the tax return to the tax authority.

Industry-specific wage and salary income tax payable, you can implement annualized, in monthly withholding levied, and the specific measures formulated by the State Council.
Individual industrial and commercial household production, management of income taxes payable, calculated annually, monthly prepayment, by the taxpayer within the 15th of the next month advance payment and settlement within three months following the end of the year, back fill less.

Income from contracted or leased operation of enterprises and institutions should be satisfied that the tax calculated per year, by the taxpayer after the end of the year in the 30th over to the State Treasury, and submitting the tax return to the tax authority.

Taxpayers who made at different times in a single year contract management or leasing operations, shall, after obtaining the proceeds of each prepayment within the 15th, final settlement within three months following the end of the year, back fill less.

The taxpayer derived from sources outside China should be in the 30th after the end of the year, the tax payable to the State Treasury, and submitting the tax return to the tax authority. Article tenth of the calculated in Renminbi as a unit.

Income in foreign currency, in accordance with the provisions of the State administration of foreign exchange foreign exchange rate converted into renminbi to pay taxes.

11th withholding agents in accordance with the amount of tax withheld, paid 2% fee.

Article 12th on savings interest tax, reduction or suspension of individual income tax, and specific measures formulated by the State Council.

13th personal income tax collection and management in accordance with the People's Republic of China regulations of the law on tax collection and management.

14th State in accordance with this law, formulate rules for its implementation.

15th article of the law come into force on the date of promulgation.

Personal income tax rates table

(Wage and salary income applies)

 Series of monthly taxable income tax rate (%)

 1 not more than 1500 3

 2 more than 1500 to 4500 Yuan part 10

 3 more than 4500-9000 Yuan part 20

 4 more than 9000 to 35000 Yuan part 25

 5 more than 35000 to 55000 Yuan part 30

 6 more than 55000 to 80000 Yuan part 35

7 more than 80000 part 45 (Note: the full moon to in this table refers to the taxable in accordance with the provisions of this law article sixth, with monthly income amount less the cost of 3,500 Yuan and the balance after additional deductions for expenses.



Personal income tax rates table II

 (Individual production, operation derived by and applicable to income from contracted or leased operation of enterprises)

 Series year taxable income tax rate (%)

 1 no more than 15000 5

 2 more than 15000 to 30000 Yuan part 10

 3 more than 30000 to 60000 Yuan part 20

 4 more than 60000-100000 Yuan, part 30

5 more than 100000 parts 35 (Note: this annual taxable income is mentioned in table in accordance with the provisions of this law article sixth, to total taxable income deduction of costs, fees and loss of balance. )

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