Individual income tax refers to individuals who have a residence in China, or who do not have a residence but have resided in China for one year, as well as individuals who do not have a residence and do not reside or have resided for less than one year, but who have obtained income from within China. Including Chinese citizens, individual businessmen, foreign individuals, etc..
The object of individual income tax
The object of individual income tax is the taxable income of individuals. The Individual Income Tax Law lists 11 items of personal income*** for taxation, including:
(1) Wage and Salary Income Wage and Salary Income
refers to wages, salaries, bonuses, year-end raises, labor bonuses, allowances, and other incomes related to employment or employment.
(2) Income from Production and Operation of Individual Industrial and Commercial Households
Income from production and operation of individual industrial and commercial households refers to:
1. Income from production and operation of individual industrial and commercial households engaged in industry, handicrafts, construction, transportation, commerce, food, services, repair and other industries;
2. Income from production and operation of individuals approved by the relevant government departments, obtaining licenses and permits, and other income related to employment. Individuals approved by the relevant government departments, obtain a license, engaged in school, medical, consulting and other paid service activities;
3, other individuals engaged in individual industrial and commercial production, business income;
4, the above individual industrial and commercial enterprises and individuals to obtain the production, business related to the various taxable income.
(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, leasing, subcontracting, and subletting by individuals, including income from wages and salaries earned by individuals on a monthly or per-occasion basis.
(D) income from remuneration for labor services
income from remuneration for labor services
refers to income derived from design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, journalism, broadcasting, translation, review of manuscripts, writing, carving, film and television, performances, performances, advertisements, exhibitions, technical services, referral services, brokering services, agency services, as well as other labor services. income.
(E) Income from Manuscripts Income from manuscripts
refers to the income received by an individual from the publication of his/her works in the form of books, newspapers and magazines.
(F) Royalty Income Royalty Income
is the income derived from the provision of patent rights, trademark rights, copyrights, non-patented technologies and other royalties; the income derived from the provision of copyrights is not included in the income from royalties.
(7) Interest, Dividend and Bonus Income
Interest, Dividend and Bonus Income refers to the interest, dividend and bonus income derived from the ownership of debentures and shares by individuals.
(H) Income from property leasing
Income from property leasing refers to the income from leasing of buildings, land use rights, machinery and equipment, vehicles and ships, and other property.
(IX) Income from the rotation of property
Income from the rotation of property refers to the income from the transfer of securities, shares, buildings, land use rights, machinery and equipment, vehicles and ships, and other property.
(10) Occasional Income
Occasional income refers to the income derived from winning a prize, a lottery, a lottery and other occasional income.
(xi) other income
Other income refers to other income that has been determined to be taxable by the financial department of the State Council.
Three: Tax Rates of Individual Income Tax
Individual Income Tax provides for two forms of tax rates, namely, super progressive tax rate and proportional tax rate for different personal income items.
(1) Wages and salaries are subject to a nine-tier super progressive tax rate ranging from 5% to 45%.
(ii) The five-step over-progressive tax rate of 5%-35% applies to the income from street business of individual industrial and commercial households and the income from contracting and leasing to enterprises and institutions.
Table II of Individual Income Tax Rates (Applicable to Income from Production and Operation, Contracting and Leasing Operation)
(3) A proportional tax rate of 20% shall be applied to the income from manuscripts, remuneration for labor, royalty income, income from leasing of property, income from transfer of property, income from interest, dividends, bonuses, occasional income and other income.