Article 2: The following items of personal income shall be subject to individual income tax:
One: Wages and salaries;
Two: Income from the production and operation of individual industrial and commercial households;
Three, contracting and leasing to enterprises and institutions;
four, remuneration for labor;
five, remuneration for manuscripts;
four, royalty income;
seven, interest, dividends, bonuses;
eight, income from property leasing;
nine, income from property transfers;
ten, occasional income tax;
ten, income from property transfers;
two, income from wages, salaries, and salaries. p>
X. Occasional income;
XI. Other incomes which are determined to be taxed by the financial department of the State Council.
Article 4: The following items of personal income shall be exempted from personal income tax:
I. Prizes awarded by the provincial people's governments, ministries and commissions of the State Council and the People's Liberation Army above the military level, as well as by foreign organizations and international organizations in the fields of science, education, technology, culture, health, sports, and environmental protection;
II. Interests on savings deposits, treasury bonds, and interest on financial bonds issued by the state;
I. Interests on financial bonds;
X. interest on financial bonds issued by the state;
three, subsidies and allowances granted in accordance with the unified provisions of the state;
four, welfare payments, pensions, and relief funds;
five, insurance compensation;
four, military personnel's transfer and demobilization fees;
seven, installation fees, retirement fees, retirement pay, resting pay, and retirement living subsidies granted to cadres and workers in accordance with the unified provisions of the state;
seven, retirement pay, retirement pay, and resting pay granted to cadres and workers in accordance with the unified provisions of the state
Article 5: Individual income tax may be reduced upon approval in one of the following cases:
One, the income of the disabled, orphans and martyrs;
Two, major losses due to a serious natural disaster;
Three, other tax reductions approved by the State Council's financial department.
Article 6 Calculation of Taxable Income:
I. Income from wages and salaries shall be taxable as the balance of the monthly income less expenses of eight hundred yuan.
II. The income from production and operation of individual industrial and commercial households shall be the taxable income based on the total amount of income for each taxable year, less costs, expenses and losses.
Third, the income from contracting and leasing to enterprises and institutions shall be taxable as the total income of each taxable year, less the necessary expenses.
4. For income from remuneration for labor, remuneration for articles, royalties, and income from leasing of property, if each income does not exceed 4,000 yuan, a fee of 800 yuan shall be deducted; if the income is more than 4,000 yuan, a fee of 20 percent shall be deducted, and the balance shall be the taxable income.
V. Income from the transfer of property shall be the taxable income after deducting the original value of the property and reasonable expenses from the income from the transfer of property.
VI. Income from interest, dividends and bonus, incidental income and other income shall be taxable income in the amount of each income.
Individuals who donate part of their income to education and other public welfare undertakings shall be deducted from their taxable income in accordance with the relevant provisions of the State Council.
Taxpayers who are not domiciled in China but earn wages and salaries in China and taxpayers who are domiciled in China but earn wages and salaries outside China may determine the additional deduction according to their average income level, living standards and changes in exchange rates, and the scope and standard of the additional deduction to be applied shall be prescribed by the State Council.
The Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China*** and the State issued by the State Council on January 28, 1994 explain the above provisions as follows:
The scope of the various individual incomes referred to in Article 8, Article 2 of the Tax Law:
Income from wages and salaries refers to the wages, salaries, bonuses, end-of-year raises that an individual obtains from his/her office or employment, labor bonuses, allowances, subsidies, and other incomes related to office or employment.
The production and operation income of individual industrial and commercial households refers to:
1. The income derived by individual industrial and commercial households from engaging in the production and operation of industry, handicrafts, construction, transportation, commerce, food and beverage, services, repairs and other trades;
2. The income derived by individuals from engaging in the activities of running schools, medical treatment, consulting and other paid services, with the authorization of the relevant government departments and the obtaining of a license;
3. The income derived by individuals from engaging in the activities of running schools, medical treatment, consulting and other paid services;
4. Income derived from school, medical, consulting and other paid service activities;
3. Income derived by other individuals from production and operation of individual businesses;
4. Taxable income derived by the above individual business households and individuals in connection with production and operation.
The income from contracting and leasing to enterprises and institutions refers to the income derived from contracting and leasing as well as subcontracting and subletting by individuals, including the income derived from wages and salaries by individuals on a monthly or monthly basis.
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, reviewing, painting, calligraphy, sculpture, film and television, audio and video recording, performance, acting, advertising, exhibition, technical services, referral services, brokering services, agency services, and other labor services.
Income from manuscripts refers to the income obtained by an individual for his/her works published or released in the form of books or newspapers.
Royalty income refers to the income derived from the provision of the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises; the income derived from the provision of the right to use copyrights is not included in the income from royalties.
Income from interest, dividends and bonuses refers to the income from interest, dividends and bonuses derived from the ownership of debt and equity by an individual.
Income from property leasing refers to the income obtained by an individual from the leasing of buildings, land use rights, machinery and equipment, vehicles and vessels, and other property.
Income from property transfer refers to the income derived from the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and vessels, and other property.
Incidental income refers to the income from winning a prize, winning a lottery, winning a lottery, and other incidental income.
If it is difficult to define the items of taxable income obtained by an individual, it shall be determined by the competent tax authorities.
Article IX of the methods for levying individual income tax on income from stock transfers shall be separately formulated by the Ministry of Finance and reported to the State Council for approval and implementation.
Article 10 The taxable income obtained by an individual includes cash, in-kind and marketable securities. Proceeds in kind, should be obtained in accordance with the vouchers on the price stated in the calculation of taxable income; no vouchers in kind or vouchers on the price is significantly lower, by the competent tax authorities with reference to the local market price of the approved taxable income. If the proceeds are securities, the taxable income shall be approved by the competent tax authorities according to the face price and market price.
Article 12 of the Tax Law, Article 4, paragraph 2, said the national bond interest, refers to individuals holding the Chinese people *** and the Ministry of Finance issued by the State Council and the interest income; said the state issued by the financial bond interest, refers to individuals holding the State Council approved the issuance of financial bonds and the interest income.
Article 13 of the Tax Law, Article 4, Item 3, the subsidies and allowances issued in accordance with the unified provisions of the State refers to the special government allowances issued in accordance with the provisions of the State Council and the subsidies and allowances exempted from individual income tax under the provisions of the State Council.
Article 14 of the Tax Law, Article 4, paragraph 4, the welfare expenses, refers to the enterprises, institutions, state organs, social organizations, according to the relevant provisions of the state, from the welfare expenses or trade union funds retained by the individual subsistence allowance; said relief funds, refers to the state civil affairs departments to pay for the individual's living difficulties.
Article 15 of the Tax Law, Article 4, Item 8, said in accordance with the provisions of China's laws shall be exempted from taxation of diplomatic representatives, consular officials and other personnel of the embassies and consulates of the countries in China, refers to the income that is exempted from taxation in accordance with the "Regulations of the People's Republic of China on Diplomatic Privileges and Immunities of the Chinese People's Republic of China" and the "Regulations of the People's Republic of China on the Privileges and Immunities of the Chinese People's Republic of China Consular Affairs".
Article 16 The reduction of individual income tax referred to in Article 5 of the Tax Law, and the magnitude and duration of the reduction shall be prescribed by the people's governments of provinces, autonomous regions and municipalities directly under the central government.
Article 17 of the Tax Law, Article 6, paragraph 1, subparagraph 2 of the costs and expenses, refers to the taxpayer engaged in the production and operation of the direct expenses incurred by the cost of indirect costs and the allocation of the cost of sales costs, management costs, financial expenses; said loss, refers to the taxpayer in the production and operation of the process of non-operating expenditures.
If a taxpayer engaged in production or operation fails to provide complete and accurate tax information and is unable to calculate its taxable income correctly, the taxable income shall be approved by the competent tax authorities.
Article 18 of the Tax Law, Article 6, paragraph 1, subparagraph 3 of the total income for each taxable year, refers to the taxpayer in accordance with the provisions of the contractual business, tenant business contract for the share of operating profits and wages, salaries and wages of the nature of the income; said deduction of the necessary expenses, refers to the monthly deduction of eight hundred yuan.
Article 19 of the Tax Law, Article 6, paragraph 1, subparagraph 5 of the original value of the property, refers to:
securities, for the purchase price and purchase in accordance with the provisions of the relevant fees;
buildings, for the construction costs or purchase price and other related costs;
land use rights, for the acquisition of the right to use the land, the cost of development of the land and other related costs;
land use rights, for the acquisition of land use rights, the amount paid, the cost of development of the land and other related costs;
land use rights, for the acquisition of land use rights, the cost of development of the land and other related costs. land use right, the amount paid to acquire the land use right, the cost of developing the land, and other related costs;
machinery and equipment, vehicles and ships, the purchase price, transportation costs, installation costs, and other related costs;
other property, determined with reference to the above method.
If the taxpayer fails to provide complete and accurate vouchers of the original value of the property and cannot calculate the original value of the property correctly, the competent tax authorities shall approve the original value of the property.
Article 20 The reasonable expenses referred to in Article 6, Paragraph 1, Item 5 of the Tax Law refers to the relevant expenses paid in accordance with the regulations when the property is sold.
Article 21 of the Tax Law, Article 6, paragraph 1, subparagraphs 4 and 6, said each time the income, refers to:
Reward for labor income, belonging to a one-time income, to obtain the income as a time; belonging to the same item of continuous income, to obtain the income within a month as a time.
The income from remuneration for manuscripts is once for each income obtained from publishing or publishing.
The income from royalties shall be the income derived from one licensed use of a franchise.
Property rental income, the income obtained in one month as a time.
Income from interest, dividends and bonuses is recognized as income received at the time of payment of interest, dividends and bonuses.
Incidental income is recognized as once for each time the income is received.
Article 22 Income from the transfer of property shall be taxed according to the amount of income from the transfer of property at one time, less the original value of the property and reasonable expenses.
Article 23 If two or more individuals **** the same income from the same item, the tax shall be calculated according to the provisions of the Tax Law after deducting the expenses on the income obtained by each individual.
Article 24 of the Tax Law, Article 6, paragraph 2, said individuals will be their income to education and other public welfare undertakings, refers to individuals will be their income through social organizations in China, state organs to education and other public welfare undertakings, as well as suffered serious natural disasters in the region, poverty-stricken areas of the donation.
The portion of the donation that does not exceed 30% of the taxable income declared by the taxpayer may be deducted from his or her taxable income.
Article 25 of the Tax Law, Article 6, paragraph 3, the wages and salaries earned outside China, refers to the wages and salaries earned from employment or employment outside China.
Additional deductions referred to in Article 26, paragraph 3 of Article 6 of the Tax Law mean that the amount specified in Article 28 of these Regulations shall be deducted on top of the 800 yuan of deductions per month.
The scope of application of the additional deduction referred to in Article 27, Paragraph 3 of Article 6 of the Tax Law refers to:
Foreign personnel working in foreign-invested enterprises and foreign enterprises within the territory of China;
Foreign experts recruited to work in enterprises, public institutions, social organizations, and state organs within the territory of China;
Foreign experts who have a place of abode within the territory of China and who work or are employed outside of China for wages and salaries. Individuals who are employed or employed outside of China to obtain income from wages and salaries;
other persons determined by the Ministry of Finance.
Article 28 of the Tax Law, Article 6, paragraph 3, refers to the additional deduction standard of 3,200 yuan.
Article 29 Overseas Chinese and compatriots in Hong Kong, Macao and Taiwan shall be implemented with reference to the provisions of Article 26, Article 27 and Article 28 of these Regulations.