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 of the 85th, 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 of deputies of the 31st meeting of the Standing Committee, adopted on December 29, 2007, are hereby promulgated and, as of March 1, 2008. People's Republic of China President Hu Jintao December 29, 2007 the Standing Committee on the revision of the People's Republic of China Law on personal income tax decisions (December 29, 2007 Deputies adopted by the 31st session of the Standing Committee) deputies of the 31st meeting of the Standing Committee decided to People's Republic of China personal income tax Act read as follows: the sixth paragraph the first amendment: "income from wages and salaries, Monthly income deduction for expenses after the 2000 balance, is taxable.
"At the same time, the" personal income tax form "notes to be modified accordingly.
This decision shall take effect on March 1, 2008.
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 personal income tax (September 10, 1980 session VIII of the third session of the national people's Congress adopted on 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 decision on individual income tax law amendments for the first time 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 Law of personal income tax decision
Amended for the second time on October 27, 2005, deputies of the 18th meeting of the Standing Committee on the changes of People's Republic of China Law on individual income tax, the third amendment of the decision on June 29, 2007th 28th 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 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 personal income tax law, the decision of the Fifth Amendment) article 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.
    Second article following the personal proceeds, should na personal income tax: a, and wage, and salary proceeds; II, and individual industrial and commercial households of production, and business proceeds; three, and on enterprises of contracting business, and tenant business proceeds; four, and labor paid proceeds; five, and remuneration proceeds; six, and chartered right using fee proceeds; seven, and interest, and dividend, and bonus proceeds; eight, and property rental proceeds; nine, and property transfer proceeds; ten, and accidentally proceeds; plenary, and by State financial sector determine tax of other proceeds.
    Third personal income tax rates: income from wages and salaries, for progressive tax rates, tax rates ranging from 5% 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 article following the personal proceeds, from na personal income tax: a, and provincial government, and State ministries and PLA army above units, and foreign organization, and international organization issued of science, and education, and technology, and culture, and health, and sports, and environmental protection, aspects of bonus; II, and bonds and national issued of financial bonds interest; three, and according to national unified provides to of subsidies, and allowance; four, and Welfare fee, and pension, and benefits; five, and insurance reparations; six, and soldiers of jobs fee, and severance pay; seven, and
    According to national unified provides to cadres, and workers of financial relief, and former fee, and retired wage, and retired wage, and retired life subventions; eight, and in accordance with China about legal provides should to duty-free of States China Embassy, and Consulate of diplomatic representative, and consular officials and other personnel of proceeds; nine, and China Government participate in of international, and signed of agreement in the provides duty-free of proceeds; ten, and by State financial sector approved duty-free of proceeds.
    Fifth, one of the following circumstances, approved to reduce personal income tax: first, the disabled, orphans, and martyred by officers; the second, for serious natural calamities have caused heavy loss of three other tax cuts approved by the financial Department of the State Council.
    Sixth taxable income calculation: first, wage and salary income, monthly income deduction for expenses after the 2000 balance, is taxable.
    Second, individual income from production, operation, with total income for each taxable year, the balance after the deduction of costs, expenses and losses, 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 7th, 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 7th, 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 advances, by the taxpayer within the 7th advances, final 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 or leasing business income shall be made after each obtained advances within the 7th, 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. Individual income tax return (income from wages and salaries applicable) series of monthly taxable income tax rate (%) 1 5 2 of no more than 500 Yuan more than 500 Yuan to 2000 Yuan part 10 part 3 more than 2000 to 5000 Yuan 15 4 more than 5000 to 20000 Yuan part 20 part 5 more than 20000 to 40000 25 part 6 more than 40000 to 60000 Yuan 30 7 more than 60000 to 80000 Yuan section 35 8 more than 80000 to 100000 Yuan part 40

Part 45 9 more than 100000 Yuan (Note: full moon to in this table refers to the taxable in accordance with the provisions of this law article sixth, with monthly income deduction for expenses after the 2000 balance or balance after deduction of additional deductions for expenses.      ) Personal income tax table II (production of individual industrial and commercial households, business income and income from contracted or leased operation of enterprises for) series annual taxable income tax rate (%) 1 not more than 5000 Yuan 5 2 in part 10 of the more than 5000 to 10000 Yuan 3 more than 10000 to 30000 Yuan part 20 part 4 more than 30000 to 50000 Yuan 30 5 Portion of more than 50000 Yuan 35 (Note: annual taxable income is in this table means in accordance with the provisions of this law article sixth, with total income for each taxable year, the balance after the deduction of costs, expenses and losses. )