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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(October 27, 2005 deputies of the 18th meeting of the Standing Committee on October 27, 2005 People's Republic of China President of the 44th release come into force on January 1, 2006) deputies of the 18th meeting of the Standing Committee decided to People's Republic of China personal income tax Act read as follows: article sixth, the first amendment as follows: "income from wages and salaries, Balance of income after the deduction of costs 1600 Yuan per month, is taxable.
    "At the same time, the" personal income tax form "notes to be modified accordingly.
    Second, eighth, is revised as follows: "personal income tax in order to artificially derived from taxpayers 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.
    "This decision shall enter into force on January 1, 2006.
    People's Republic of China Law on personal income tax in accordance with this decision be modified accordingly, republished. Attachment: People's Republic of China income tax law (amended in 2005) (September 10, 1980, adopted at the last session of the national people's Congress at its third meeting on October 31, 1993, VIII 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 decision on individual income tax law amendment for the second time on October 27, 2005th 18th meeting of the Standing Committee of the national people's Congress to amend People's Republic of China decision on third amendment to income tax law) 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
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    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, balance of income after the deduction of costs 1600 Yuan per month, 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.
    12th the levy of individual income tax on savings interest income and levy 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.
              Report: personal income tax personal income tax rates table in table (wage and salary income applicable) series of monthly taxable income tax rate (%) 1 no more than 500 yuan of 5         2 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

              6 more than 40000 to 60000 Yuan section 30 7 more than 60000 to 80000 Yuan section 35 of part 8 more than 80000 to 100000 Yuan 40 9 more than 1000 Some 45 00 (Note: full moon to in this table refers to the taxable in accordance with the provisions of this law article sixth, monthly income after the deduction of costs 1600 Yuan to balance or balance after deduction of additional deductions for expenses.                     ): Table II table II personal income tax personal income tax rates (individual production, operation derived by and applicable to income from contracted or leased operation of enterprises) series annual taxable income tax rate (%) 1 not more than 5000 Yuan 5 part 2 more than 5000 to 10000 Yuan 10 3 more than 10000 to 30000 Yuan part 20 part 4 more than 30000 to 50000 Yuan 30 5 ultra Over 50000 part 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.
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