The tax is also required to have a legal basis for the implementation of the individual gift whether to pay taxes according to the actual situation to deal with, if it is an accidental income then need to pay, but if it is a state grant fee, then there will not be a situation to pay the tax, so, different situations will be dealt with in different ways.
The cash gifts received by the individual belong to the incidental income in law, and should pay personal income tax, the incidental income tax rate is 20%. Subsidies, allowances, welfare payments, pensions and relief payments issued in accordance with uniform state regulations; income from disabled, orphaned and martyred persons; and state gifts received due to major losses from natural disasters are not subject to income tax.
Legal basis
Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China
Article 6 Scope of the individual income under the Individual Income Tax Law:
(1) Wages and salary income refers to wages, salaries, bonuses, year-end raises, labor bonuses, allowances, subsidies, etc., which are earned by individuals for the purpose of holding an office or being employed. (a) Income from wages and salaries refers to wages, salaries, bonuses, year-end raises, labor bonuses, allowances, subsidies, and other incomes related to employment or occupation.
(2) Income from remuneration for labor services refers to the income derived from the performance of labor services by an individual, including design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, translation, reviewing, painting, calligraphy, sculpture, film and television, audio and video recording, performance, acting, advertisement, exhibition, technical services, referral services, brokering services, agency services, as well as 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 taxable income items of the income obtained by an individual, the competent tax authorities of the State Council shall determine them.