I. Definition and Characteristics of Occasional Income
Occasional income, usually refers to the income that an individual obtains due to accidental factors, such as winning the lottery, lottery income and so on. This type of income is characterized by uncertainty and non-recurrence, and is different from regular income such as salary and remuneration.
The provisions of the tax law on incidental income
According to the Individual Income Tax Law of the People's Republic of China and its relevant implementing regulations, the tax law sets a certain amount of tax exemption for incidental income. Specifically, individuals are temporarily exempted from personal income tax on income from lottery ticket purchases where the prize for a single bet does not exceed 10,000 yuan. This means that if an individual's incidental income is less than 800 yuan, he or she is eligible for the tax exemption.
Third, the significance and impact of the tax exemption policy
The tax exemption policy for occasional income is set up to alleviate the tax burden of individuals when they earn income due to occasional factors, and to encourage people to participate in social welfare activities, such as purchasing lottery tickets to support the development of public welfare undertakings. At the same time, it also reflects the tax law's respect and protection of individuals' reasonable income.
It should be noted that although incidental income is exempted from tax up to a certain amount, if an individual's incidental income exceeds the exempted amount, the excess will still be subject to personal income tax according to the law. Therefore, when individuals receive incidental income, they should understand the provisions of the tax law to ensure that their tax behavior is legal and compliant.
In summary:
The tax exemption for incidental income of less than 800 yuan is a policy stipulated in China's personal income tax law. This policy reflects the tax law's respect for and protection of individuals' reasonable income, and aims to reduce the tax burden on individuals when they earn income due to occasional factors. However, while enjoying the tax exemption policy, individuals should also understand the provisions of the tax law to ensure that their tax behavior is legal and compliant.
Legal basis:
The Individual Income Tax Law of the People's Republic of China
Article 6 stipulates:
Calculation of taxable income:
(1) The consolidated income of a resident individual is calculated as the taxable income for each taxable year after subtracting the expenses of 60,000 yuan as well as the special deductions, special additional deductions and other deductions determined by law. The balance shall be the taxable income.
(2) Income from wages and salaries of non-resident individuals shall be taxable as the balance of monthly income less expenses of five thousand yuan; income from remuneration for labor services, remuneration for manuscripts, and income from royalties shall be taxable as the amount of each income.
(3) Income from business operation shall be the taxable income after deducting costs, expenses and losses from the total income of each taxable year.
(4) Income from property leasing, if each income does not exceed four thousand yuan, less eight hundred yuan of expenses; if four thousand yuan or more, less twenty percent of the expenses, and the balance is the taxable income.
(5) Income from the transfer of property shall be taxable as the income from the transfer of property, less the original value of the property and reasonable expenses.
(vi) Income from interest, dividends, bonus and incidental income shall be the taxable income in the amount of each income.
Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China
Article 6 stipulates:
The scope of each individual's income as stipulated in the Individual Income Tax Law:
(1) Income from salaries and wages refers to the salaries, wages, bonuses, end-of-year raises, labor bonuses, allowances and subsidies, and other incomes related to the employment or employment, which are earned by an individual as a result of holding a post or being employed. employment-related income.
(2) Income from remuneration for labor services refers to the income derived by an individual from performing labor services, including design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, translation, reviewing, painting, calligraphy, sculpture, film, television, sound recording, video recording, performance, acting, advertising, exhibition, technical services, referral services, brokering services, agency services, and 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 production and business activities of sole proprietorship enterprises registered in China by investors of sole proprietorship enterprises and individual partners of partnerships;
2. Income derived from schooling, medical treatment, counseling and other paid service activities by individuals in accordance with the law;
3. Income derived from the provision of patent rights, trademark rights, copyrights, non-patented technologies and other licensing rights; income derived from the provision of the right to use copyrights is excluded.
3. Income derived from contracting, leasing, subcontracting or subletting by individuals to enterprises and institutions;
4. Income derived by individuals from other production and business activities.
(6) Income from interest, dividends and bonuses refers to the income from interest, dividends and bonuses 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.
Interest income derived from the purchase of national bonds, local government bonds and financial bonds by individuals is a tax-exempt item.