1. What are the items that can be deducted from personal income tax?
1. The items that can be deducted from personal income tax include:
(1) Social insurance premiums;
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(2) Housing provident fund;
(3) Annuity;
(4) Commercial health insurance;
(5) Charitable donation;
(6) Special deductions include children’s education expenses, continuing education expenses, serious illness medical expenses, housing loan interest, housing rent and expenses for supporting children of the elderly.
2. Article 6 of the "Individual Income Tax Law of the People's Republic of China"
Calculation of taxable income:
(1) Resident individuals The taxable income is the balance after deducting RMB 60,000 in expenses, special deductions, special additional deductions and other deductions determined in accordance with the law from the income in each tax year.
(2) For wages and salaries of non-resident individuals, the balance after deducting RMB 5,000 in expenses from the monthly income shall be the taxable income; income from remuneration for services, income from author remuneration, and royalties Income, the amount of each income is the taxable income.
(3) Business income shall be the taxable income after deducting costs, expenses and losses from the total income in each tax year.
(4) If the income from property leasing does not exceed 4,000 yuan per time, 800 yuan of expenses will be deducted; if the income exceeds 4,000 yuan, 20% of the expenses will be deducted, and the balance will be Taxable income.
(5) For income from property transfer, the taxable income shall be the balance of the income from the transferred property minus the original value of the property and reasonable expenses.
(6) For interest, dividends, bonus income and incidental income, the amount of each income shall be the taxable income.
Income from labor remuneration, author remuneration, and royalties shall be the balance after deducting 20% ??of the expenses. The amount of income from royalties is calculated at a reduced rate of 70%.
Individuals who donate their income to education, poverty alleviation, relief and other public welfare charities, and the donation amount does not exceed 30% of the taxable income declared by the taxpayer, can be deducted from their taxable income. If the State Council stipulates that donations to public welfare charities should be deducted in full before tax, such provisions shall prevail.
The special deductions specified in Item 1 of Paragraph 1 of this Article include basic pension insurance, basic medical insurance, unemployment insurance and other social insurance premiums and housing provident funds paid by individual residents in accordance with the scope and standards prescribed by the state; Special additional deductions include expenditures such as children’s education, continuing education, medical treatment for serious illnesses, housing loan interest or housing rent, support for the elderly, etc. The specific scope, standards and implementation steps shall be determined by the State Council and reported to the Standing Committee of the National People’s Congress for filing.
2. What does the scope of personal income tax include?
The scope of personal income tax includes:
1. Income from wages and salaries, where an individual is responsible for holding a position or being employed Wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies and other income related to office or employment;
2. Income from labor remuneration, individuals engaged in design, testing, testing, Income from services such as medical treatment, law, accounting, decoration, installation, drawing, consulting, lecturing, calligraphy and painting, engraving, translation, film and television, sound recording, review, video, performance, advertising, exhibition, performance, technical services, etc.;
3. Income from author remuneration is the income an individual obtains from the publication or publication of his works in the form of books, newspapers, periodicals, etc.
Note that the income obtained by individuals providing the right to use copyrights does not include income from royalties;
4. Income from royalties, individuals providing the use of patent rights, trademark rights, copyrights, non-patented technologies and other franchises Income obtained from rights;
5. Business income, including income obtained by individual industrial and commercial households from production and business activities; investors of sole proprietorships and individual partners of partnerships come from sole proprietorships registered in the country , income from the production and operation of partnership enterprises; income from individuals engaged in running schools, medical care, consulting and other paid service activities in accordance with the law; income from individuals' contracting operations, leasing operations, subcontracting and subletting of enterprises and institutions, and individuals' income from other activities Income from production and business activities;
6. Interest, dividends, and bonus income, interest, dividends, and bonus income obtained from personal ownership of debts, equity, etc.;
7. Property Income from leasing refers to the income obtained by individuals from leasing real estate, machinery and equipment, vehicles and ships, and other properties;
8. Income from property transfer, including personal transfer of securities, equity, property shares in partnerships, real estate, machinery and equipment , cars, boats and other property;
9. Incidental income, personal prizes, winnings, lottery and other incidental income.