The scope of individual income tax payment:
(1) Wages and salaries
Wages and salaries refer to the wages, salaries, bonuses, year-end raises, labor bonuses, allowances, subsidies, and other incomes related to the position or employment that an individual obtains as a result of his/her position or employment.
Some subsidies and allowances that are not of the nature of wages or salaries, or income that is not part of the taxpayer's own wage or salary income items, are not taxable. These items include: ① one-child allowance; ② the implementation of the civil service wage system is not included in the total basic salary subsidies, allowance differentials and family members of the food subsidies; ③ child care subsidies; ④ travel allowances, meal allowance.
Taxi operators to cab drivers to take a single car contract or lease mode of operation, cab drivers engaged in passenger and cargo operations income, according to "wages, salaries" income tax.
Since January 20, 2004, the commodity marketing activities, enterprises and units of outstanding marketing performance of employees in the name of training courses, seminars, work study tours, etc., through the exemption of travel expenses, travel expenses on the implementation of the individual marketing performance incentives (including in-kind, securities, etc.), according to the full amount of the expenses incurred and the marketing staff of the current period of wages, salaries and income
If an individual is employed by a company (including an affiliated company) and also serves as a director or supervisor, the director's fee or supervisor's fee shall be combined with the individual's salary income and be subject to individual income tax under the item of "salary and wages income".
(2) Production and Operation Income of Individual Industrial and Commercial Households
The production and operation income of individual industrial and commercial households refers to the taxable income of individual industrial and commercial households engaged in industry, handicrafts, construction, transportation, commerce, catering, service, repair and other industries related to production and operation.
Individual industrial and commercial households or individuals specializing in planting, farming, breeding and fishing (four industries) are not subject to individual income tax.
The income earned by cab drivers engaged in individual cab operation shall be subject to individual income tax according to the production and business income items of individual industrial and commercial households. Individuals who are engaged in the lottery sales business shall be subject to individual income tax under the item of "production and operation income of individual industrial and commercial households".
(3) Income from Contracting and Leasing to Enterprises and Institutions
Income from contracting and leasing to enterprises and institutions refers to the income from contracting and leasing as well as subcontracting and subletting, and also includes income from wages and salaries obtained by an individual on a monthly or monthly basis.
(4) Income from Remuneration for Labor Services
Income from remuneration for labor services refers to the income derived from designing, decorating, installing, drafting, assaying, testing, medical care, legal, accounting, consulting, agency services and other remuneration for labor services.
If an individual holds the position of director or supervisor and is not serving or employed by the company, the income from director's fee and supervisor's fee is of the nature of labor remuneration and is taxed under the item of income from labor remuneration.
(E) Income from Manuscripts
Income from manuscripts refers to the income received by an individual from the publication of his or her work in the form of a book or newspaper. The works mentioned here include literary works, paintings and calligraphy, photographs, and other works. Remuneration for posthumous works obtained by the heirs of an author's estate after his death shall also be subject to personal income tax.
Reporters, editors and other professionals who work for or are employed by newspapers or magazines, and who receive income from the publication of their works in their own newspapers or magazines, are considered to be income derived from their work and employment, and should be combined with their monthly salary income and subject to individual income tax under the item of "wages and salaries".
(F) Royalty Income
Royalty income refers to the income derived from the provision of the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises. Among them, the provision of the right to use copyright income, excluding income from manuscripts; individuals to obtain the franchise economic compensation income, should be "royalties" taxable items to pay personal income tax.
From May 1, 2002 onwards, the script royalties obtained by scriptwriters from the production units of TV dramas are no longer differentiated as to whether the scripts are used by the units in which they work or not, and are taxed under the item of "royalties income".
(7) Interest, Dividend and Bonus Income
Interest, dividend and bonus income refers to the interest, dividend and bonus income obtained by an individual who owns debt or equity.
(H) Income from Property Leasing
Income from property leasing refers to the income obtained by an individual from leasing buildings, land use rights, machinery and equipment, vehicles and vessels, and other property.
The income from subletting of property obtained by an individual falls within the scope of taxation of "income from property leasing".
(IX) Income from Transfer of Property
Income from transfer of property refers to the income from transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and vessels, and other property.
The specific provisions are as follows:
1. Income from stock transfer
There is no individual income tax on income from stock transfer.
2. Transfer of Shares of Quantitative Assets
When a collectively-owned enterprise is restructured into a joint-stock cooperative enterprise, the individual income tax on the quantitative assets of the enterprise in the form of shares acquired by individual employees in the form of shares in the form of ownership rights shall be suspended; and when an individual transfers his/her shares, the balance of his/her income from the transfer of the shares, minus the actual expenses paid by the individual when acquiring the shares and the reasonable expenses of the transfer of the shares, shall be taxed at the rate of "Income from Transfer of Property", and then at the rate of "Income from Transfer of Property". The individual income tax shall be levied under the item of "Income from Transfer of Property".
3. Individuals selling their own housing
(1) When an individual sells a purchased public housing unit, the taxable income is the sales price of the purchased public housing unit, less the price of the affordable housing unit with standardized housing area, the original payment of the housing price that exceeds the standardized housing area, the proceeds from the payment of the proceeds to the treasury or to the original property right unit, as well as the reasonable expenses stipulated in the tax law.
(2) Since October 1, 2010, there is no longer any reduction or exemption of personal income tax for taxpayers who sell their own houses and repurchase them within one year.
(3) Individuals will continue to be exempted from individual income tax on income derived from the transfer of a house that has been in their possession for more than five years and is the sole living accommodation of the family.
4. Individuals who terminate their investments, joint ventures or business cooperation for various reasons, and obtain equity transfer income, liquidated damages, compensation, indemnification and money recovered under other names from invested enterprises or cooperative projects, other investors of invested enterprises and business cooperators of cooperative projects, etc., are taxable income subject to the individual income tax, and shall be subject to the "property transfer income" item. Income from transfer of property" item shall be calculated and paid individual income tax according to the applicable regulations.
(J) Occasional Income
Occasional income refers to the income from winning prizes, jackpots, lotteries and other occasional income.
(XI) Other Income
The above 10 items of personal taxable income are divided according to the different nature of the income. In addition to these, new items that may arise in the future that need to be taxed, as well as personal income obtained by individuals that is difficult to define taxable items, shall be determined by the financial department of the State Council for the imposition of personal income tax.