Calculation of individual income tax on rental income is based on each income of up to four thousand dollars, less expenses of eight hundred yuan; more than four thousand dollars, less twenty percent of the expenses, and the balance is taxable income. The applicable tax rate for rental income is 20 percent.
According to Article 6 of the Individual Income Tax Law of the People's Republic of China, the calculation of taxable income:
(1) The comprehensive income of a resident individual shall be the taxable income in the amount of his income for each taxable year, minus the expenses of 60,000 yuan, as well as the balance of special deductions, special additional deductions, and other deductions determined by law.
(2) Income from wages and salaries of non-resident individuals shall be taxable as the balance of monthly income less expenses of five thousand yuan; income from remuneration for labor services, remuneration for manuscripts, and income from royalties shall be taxable as the amount of each income.
(3) Income from business operation shall be the taxable income after deducting costs, expenses and losses from the total income of each taxable year.
(4) Income from property leasing, if each income does not exceed four thousand yuan, less eight hundred yuan of expenses; if four thousand yuan or more, less twenty percent of the expenses, and the balance is the taxable income.
(5) Income from the transfer of property shall be taxable as the income from the transfer of property, less the original value of the property and reasonable expenses.
(vi) Income from interest, dividends, bonus and incidental income shall be taxable income in the amount of each income.
Income from remuneration for labor, remuneration for manuscripts, and royalties shall be determined by the balance of the income less twenty percent of the expenses. The amount of income from manuscripts is reduced by 70 percent.
Individuals who donate their income to education, poverty alleviation, relief and other public welfare and charitable causes, and the portion of the donation that does not exceed thirty percent of the taxable income declared by the taxpayer, can be deducted from their taxable income; if the State Council prescribes full pre-tax deduction of public welfare and charitable cause donations, it shall be subject to its regulations.
The special deductions stipulated in the first paragraph of this article include the basic pension insurance, basic medical insurance, unemployment insurance and other social insurance premiums paid by individual residents in accordance with the scope and standards prescribed by the state and housing fund; special additional deductions, including children's education, continuing education, medical treatment for serious illnesses, interest on housing loans or housing rents, and expenditures for supporting the elderly, with the specific scope, standards and implementation steps to be determined by the State Council and reported to the State Council. implementation steps shall be determined by the State Council and reported to the Standing Committee of the National People's Congress for the record.
Expanded:
Article 3 of the Individual Income Tax Law of the People's Republic of China (PRC) Article 3 Individual Income Tax Rates:
(1) For comprehensive income, a super progressive tax rate of three to forty-five percent shall be applied;
(2) For business (ii) business income, a super progressive tax rate of five percent to thirty-five percent;
(iii) interest, dividend, bonus income, property rental income, property transfer income and incidental income, a proportional tax rate of twenty percent is applied.
Baidu Encyclopedia - Individual Income Tax Law of the People's Republic of China