Personal income tax items mainly include wages, salary income, remuneration for services, remuneration income, royalties, business income, interest, dividends and bonus income, property rental income, property transfer income and incidental income. Among them, the income from wages and salaries, remuneration for labor and royalties are combined to calculate the individual income tax according to the tax year; the other taxes are calculated and paid separately as value-added tax (VAT).
I. Income from remuneration for labor. Income from remuneration for labor services generally refers to the income obtained by individuals independently performing various non-employment labor services. For example, income from various labor activities such as design, consulting and performance. It should be emphasized here that the income from director's fees earned by an individual who holds a directorship (without serving or being employed by a company) is in the nature of remuneration for labor and is subject to individual income tax in accordance with remuneration for labor. Comprehensive income is subject to a seven-tier ultra-progressive tax rate ranging from 3% to 45%.
The determination of the amount of income from remuneration for labor, remuneration for labor is generally a one-time income, should be based on the income obtained from each provision of labor services as a one-time. However, it should be noted that if the one-time income from remuneration for labor is obtained in a month-by-month manner, which is a continuous income from the same matter, the income determined within 1 month as a one-time provision. In addition, when income from remuneration for labor is recognized, the amount of income is the balance of income less 20% of expenses.
The standard of expense deduction for comprehensive income from labor remuneration is that the taxable income is the balance of the annual gross income less expenses of 60,000 yuan and special deductions, special additional deductions and other deductions.
Two, operating income. Business income mainly refers to the production and business income and other income obtained by individual business owners, sole proprietorship investors, individual partners of partnerships and individuals. In addition, also includes individuals engaged in school, medical, consulting and other paid service activities, as well as individuals contracted, leased business income. Business income is subject to a five-tier super progressive tax rate ranging from 5% to 35%.
Taxable income from operations is recognized as taxable income, i.e., the balance of total income less costs, expenses and losses for each tax year. However, the determination of its taxable income is different for different taxable entities.
Individuals with business income, without comprehensive income, should calculate their taxable income for each tax year by subtracting expenses of 60,000 yuan, special deductions, special additional deductions and other deductions. Special additional deductions should be deducted when making the remittance.
The investor of a sole proprietorship enterprise shall take all the income from production and operation as the taxable income; the investor of a partnership enterprise shall determine the taxable income in accordance with all the income from production and operation of the partnership enterprise and the distribution ratio agreed in the partnership agreement, and if the distribution ratio is not agreed in the partnership agreement, the taxable income of each investor shall be calculated on the basis of the average of all the income from production and operation and the number of partners. The income from production and operation includes the income distributed to the investors and the income retained by the enterprise in the current year.
Individual business owners, sole proprietorships and partnerships of natural person investors in the production and operation of income tax according to law, individual business owners, sole proprietorships and partnerships is a natural person investor, his or her own expense deduction standard is 60,000 yuan / year.
Enterprise and public utility contracting, leasing business income, the total income for each tax year, minus the relevant costs and expenses (deducted 60,000 yuan on an annual basis), the balance of the taxable income.
In short, the difference between income from labor compensation and business income is more obvious, then it is also very easy to distinguish, after all, income from labor compensation and business income in the determination of income, the calculation of taxable income, the implementation of the tax rate and the main body of the taxpayer are different, to find the difference between the two, it is very easy to distinguish.
Legal basis
Regulations on the Implementation of the Individual Income Tax Law
Article 6 of the Individual Income Tax Law provides for the scope of each individual's income:
(a) Wages and salaries, refers to the wages, salaries, bonuses, end-of-year raises, labor bonuses, allowances and subsidies that are obtained by an individual as a result of his or her office or employment, subsidies and other incomes related to office or employment.
(2) Income from remuneration for labor services refers to the income derived by an individual from performing labor services, including design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, translation, reviewing, painting, calligraphy, sculpture, film and television, audio-recordings, video-recordings, performances, performances, advertisements, exhibitions, technical services, referral services, brokering services, agency services, and other income derived from labor services. income.
(3) Income from remuneration for manuscripts refers to the income obtained by an individual for the publication and dissemination of his/her works in the form of books, newspapers and magazines.
(4) Royalty income refers to the income obtained by an individual by providing the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises; the income obtained by providing the right to use copyrights is excluded from the income from manuscripts.
(5) Business income refers to:
1. Income derived from production and business activities of individual industrial and commercial households, and income derived from the production and business activities of sole proprietorships and partnerships registered within the country by investors of sole proprietorships and partners of partnerships;
2. Income derived from the running of schools, medical treatment, counseling, and other remunerated services;
3. Income derived from the provision of patent rights, trademark rights, copyrights, non-patented technologies, and other franchises; income derived from the provision of the right to use copyrights is not included in the income from manuscripts. Income from contracting, leasing, subcontracting and subletting to enterprises and institutions;
4. Income from other production and business activities.
(6) interest, dividend and bonus income, refers to the interest, dividend and bonus income obtained by an individual who owns debt, equity and so on.
(7) Income from property leasing refers to the income obtained by an individual from the leasing of real estate, machinery and equipment, vehicles and vessels, and other property.
(h) Income from property transfer refers to the income derived from the transfer of securities, equity, shares in partnerships, real estate, machinery and equipment, vehicles and vessels, and other property.
(ix) Incidental income refers to income from winning prizes, jackpots, lotteries and other incidental income.
If it is difficult to define the items of taxable income obtained by an individual, the competent tax authorities under the State Council shall determine them.
Article 7 The method of levying individual income tax on income from stock transfers shall be separately prescribed by the State Council and reported to the Standing Committee of the National People's Congress for the record.