Any individual who has a residence in China, or who has no residence but has lived in China for one year, and obtains income from both within and outside China, and any individual who has no residence and does not live in China, or who has no residence but has lived in China for less than one year, and who obtains income from China, shall be the taxpayers of the Individual Income Tax (IIT). First, how to pay individual income tax China's individual income tax collection method to implement the source of withholding and self-declaration and use, focusing on the source of withholding. The collection method of individual income tax can be divided into monthly and yearly. The production and business income of individual industrial and commercial households, the contracting and leasing income of enterprises and institutions, the wage and salary income of specific industries, and the income obtained from outside China are subject to annual taxable amount, while the taxable amount of other incomes is subject to monthly taxable amount.1. The formula for calculating the individual tax on wages is Taxable Amount = (Income from Wages and Salaries - "Five Insurance and One Gold" - Deductions). " - deductions) × applicable tax rate - quick deduction 2, personal tax exemption is 3500, the use of ultra-progressive tax rate calculation method to pay tax = full-month taxable income * tax rate - quick deduction Actual salary = payable salary - four gold - pay tax. Full-month taxable income = (payable salary - four gold) - 35003, the deduction standard personal tax calculated according to the starting standard of 3500 yuan / month 4, for example, if a person's salary income of 5000 yuan, he should pay personal income tax for: (5000 - the amount of social insurance amount paid by the individual - 3500) x 3% -0 = the amount of personal income tax payable. Second, the individual income tax rate individual income tax according to different taxable items, respectively, provides for three different tax rates: 1. Wages, salary income, the application of seven super progressive tax rate, calculated on the basis of monthly taxable income tax. The tax rate is divided into bands according to the individual's monthly taxable income from wages and salaries, with the highest band at 45% and the lowest band at 3%, ****7 bands.2. 5 bands of ultra-progressive tax rates are applied to the production and business income of individual industrial and commercial households, and to enterprises and institutions. The annual taxable income from production and operation of individual industrial and commercial households and the annual taxable income from contracting and leasing to enterprises and public institutions is divided into grades, with the lowest grade at 5% and the highest grade at 35%,***5 grades.3. Proportionate tax rate. Individuals are subject to a 20% proportional tax rate on income from manuscript remuneration, remuneration for labor, royalties, interest, dividends, bonuses, property leases, property transfers, incidental income and other income, which is calculated on a per capita basis for the purpose of levying individual income tax. Among them, the proportional tax rate of 20% is applied to the income from remuneration for manuscripts, and the tax rate is reduced by 30% of the taxable amount; if the one-time income from remuneration for labor is abnormally high, in addition to the tax rate of 20%, the taxable income exceeding 20,000 yuan to 50,000 yuan is calculated in accordance with the provisions of the Tax Law, and then an additional levy of 50% is added according to the taxable amount; and an additional levy of 10% is added to the portion of the taxable amount exceeding 50,000 yuan. Third, the scope of personal income tax 1, wages, salary income personal income tax wages, salary income, refers to the wages, salaries, bonuses, year-end raises, labor bonuses, allowances, subsidies, as well as other income related to the employment or employment of individuals. That is to say, the income obtained by an individual, as long as it is related to the post, employment, regardless of its unit of funds expenditure channels or in the form of cash, in-kind, securities and other forms of payment, are wages, salaries, the object of taxation. 2, the production and operation of the individual businessman's income from the individual businessman's production and operation of the individual businessman's income includes four aspects: (a) by the administration for industry and commerce approved the opening of the business and receive a business license for the urban and rural individual businessmen. (a) Individual industrial and commercial households in urban and rural areas approved by the administrative department for industry and commerce to open business and receive a business license, engaged in industry, handicrafts, construction, transportation, commerce, catering, service, repair and other industries, production and business income. (ii) Income obtained by individuals who have been approved by the relevant government departments and have obtained business licenses to engage in schooling, medical care, consulting and other paid service activities. (iii) Income derived by other individuals from engaging in individual industrial and commercial production and operation, as well as income derived by individuals from engaging in production and operation activities on a temporary basis. (d) The above individual industrial and commercial households and individuals obtain all taxable income related to production and operation.3. Income from contracting and leasing to enterprises and institutionsIncome from contracting and leasing to enterprises and institutions refers to the income obtained by individuals from contracting and leasing as well as subcontracting and subletting, including income from salaries and wages obtained by individuals on a monthly basis or on a per-occasional basis.4. Income from remuneration for labor servicesIncome from remuneration for labor services refers to the income obtained by individuals from designing, manufacturing and operating activities and other remunerated service activities. Income from remuneration for labor services refers to the income derived from design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, journalism, broadcasting, translation, reviewing, painting and calligraphy, sculpture, film and television, audio-recording, video-recording, performance, performance, advertisement, exhibition, technical service, referral service, economic service, agency service, and other labor services. Income from remuneration for literary works refers to the income obtained by an individual from the publication of his/her works in the form of books or newspapers. The "works" mentioned here refer to the works that can be published in the form of books and newspapers, including Chinese and foreign words, pictures, music scores, etc.; "personal works" include one's own writings, translations, etc. The remuneration for posthumous works should be obtained by the individual. Individuals who receive remuneration for posthumous works shall be taxed according to the income from manuscripts.6. Royalty IncomeRoyalty income refers to the income derived from the provision of patent rights, copyrights, trademarks, non-patented technologies and other rights to use franchises. Income derived from the provision of the right to use copyrights does not include income from manuscripts. The income obtained from the public auction (bidding) of the original or copy of the manuscript of the author's own written work shall be taxed according to the item of royalty income.7. Interest, Dividend and Bonus IncomeInterest, dividend and bonus income refers to the interest, dividend and bonus income obtained from the ownership of debt and equity by an individual. Interest refers to an individual's interest on deposits (the state announced the abolition of interest tax starting the day after October 8, 2008), interest on goods and interest on the purchase of various bonds. Dividends, also known as stock dividends, are the investment benefits that stockholders regularly receive from a joint-stock company with their shares in accordance with the provisions of the joint-stock company's articles of incorporation. Dividends, also known as company (enterprise) dividends, is a joint-stock company or enterprise according to the profits to be distributed according to the shares of profits in excess of the dividend portion of the distribution. Joint-stock enterprises in the form of shares to individual shareholders to pay dividends, bonuses, that is, the distribution of bonus shares, should be distributed for the face value of the stock for the amount of income tax.8, property rental income property rental income, refers to individuals to rent out buildings, land use rights, machinery, equipment, vehicles and boats, as well as other property income. Property includes movable and immovable property.9. Income from property transfer Income from property transfer refers to the income derived from the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and boats, as well as other property to others or units, including the transfer of immovable and movable property and the income derived. There is no tax on the income derived from individual stock trading.10. Incidental IncomeIncidental income refers to the income derived by individuals on a non-recurring basis, which belongs to a variety of opportunistic income, including winning prizes, jackpots and lotteries, as well as other incidental income (including prizes, in-kind goods and marketable securities). Individuals purchasing social welfare prize fund-raising lottery tickets and China Sports Lottery tickets are exempted from individual income tax if the income from a single win does not exceed RMB 10,000, and if it exceeds RMB 10,000, it shall be taxed in full according to the incidental income items (the tax rate as of April 21, 2011 is 20%).11. Other IncomeIn addition to the above 10 taxable items, the State Council shall determine the tax to be levied on the other incomes. The finance department of the State Council shall determine the tax to be levied. The financial departments of the State Council refer to the Ministry of Finance and the State Administration of Taxation. As of April 30, 1997, the Ministry of Finance and the State Administration of Taxation to determine the taxation of other income items are: (a) individuals to obtain "Cai Guanshen Chinese Academy of Sciences Academician Honorary Foundation" issued by the Chinese Academy of Sciences Academician Honorary Bonus. (ii) Individuals obtaining bonuses paid by the banking sector at interest rates in excess of the national regulations and value-added subsidy rate of the reserve. (iii) Individuals who have obtained preferential income from non-reimbursable payments due to the payment of relevant insurance costs by the organization in which they work. (iv) Interest paid to insurance companies on the insured amount at the bank's savings deposit rate for the same period of time to life insurance households that are not insured during the policy period (or similar income paid in other names). (v) Rebate income or transaction fee rebate income obtained by individual stockholders as a result of securities companies soliciting large stockholders to open accounts and trade with the Company and paying a portion of the transaction fee obtained to large stockholders. (vi) Individuals obtaining cash, in-kind or marketable securities issued by some units and departments to relevant personnel of other units and departments in the course of year-end summaries, various celebrations, business transactions and other activities. (vii) Resignation risk money. (viii) Individuals receive remuneration for providing guarantees for units or others. If it is difficult to define which item of taxable income an individual receives, it shall be examined and determined by the competent tax authorities.
Legal Objective:Article 11 of the Individual Income Tax Law of the People's Republic of China (PRC) Resident individuals shall calculate their individual income tax on an annual basis when they obtain comprehensive income; where there is a withholding agent, the withholding agent shall withhold and prepay the tax on a monthly basis or on a per-month basis; and where there is a need for remittance, the remittance shall be made between March 1 and June 30 of the year following the year of the acquisition of the income. The withholding and prepayment methods shall be formulated by the competent tax authorities under the State Council. Article 12 of the Individual Income Tax Law of the People's Republic of China Article 12 A taxpayer who obtains business income and calculates his individual income tax on an annual basis shall file a tax return with the tax authorities within fifteen days after the end of the month or the quarter and make advance payment of tax; and shall handle the remittance of tax before March 31 of the year following the year in which he obtains the income. Taxpayers obtaining interest, dividends, dividend income, property rental income, property transfer income and incidental income, monthly or monthly calculation of personal income tax, there are withholding agents, the withholding agent on behalf of the monthly or monthly withholding tax.