(1) Prizes. Prizes awarded by provincial governments, ministries and commissions of the State Council and military units above the military level, as well as by foreign and international organizations in the fields of science, education, technology, culture, health, sports and environmental protection;
(2) Interest on bonds. Interest on national bonds and financial bonds issued by the state;
(3) Subsidies and allowances. Special government allowances granted in accordance with the provisions of the State Council and subsidies and allowances exempted from tax under the provisions of the State Council; (Rule 13)
(4) Relief payments. Individual living allowance paid from the retained welfare or labor union funds in accordance with the relevant state regulations; relief paid to individuals by the civil affairs department as well as pensions; (Article 14 of the Rules)
(5) Insurance Claims. Insurance claims paid by insurance companies;
(6) Rehabilitation and demobilization fees. Rehabilitation and demobilization fees for military personnel;
(7) Settlement and Retirement Expenses. Settlement fees, retirement fees, retired wages, retired wages, retired wages, and retired living allowance paid to cadres and employees in accordance with regulations;
(8) Income of Diplomatic Personnel. Income of diplomatic representatives, consular officers and other personnel of embassies and consulates in China who are exempted from taxation in accordance with the provisions of the relevant Chinese laws and regulations;
(9) Income exempted from taxation by agreement. Income exempted from tax under international conventions and agreements signed by the Chinese government;
(10) Other income. Income approved by the financial department of the State Council to be exempt from tax.
2. The following incomes are temporarily exempted from individual income tax: ([94] Cai Shui Zi No. 20)
(1) Bonus. Individuals to report, assist in the investigation of a variety of illegal and criminal behavior and received bonuses;
(2) handling fees. Individuals to handle the withholding of taxes on behalf of the handling fee, in accordance with the provisions of the withholding fee obtained;
(3) transfer of property income. Individuals transfer their own use for more than five years, and is the only family living room obtained income;
(4) Deferred retirement income. Senior experts who have reached the age of retirement, but due to the need of their work, their wages and salaries during the period of extension of retirement are exempted from individual income tax as if they were the wages of retirement.
3. The following incomes of foreign individuals are exempted from individual income tax: ([94] Cai Shui Zi No. 20)
(1) Living expenses. Housing subsidies, meal subsidies, relocation expenses, and laundry expenses obtained by foreign individuals in non-cash form or in the form of reimbursement;
(2) Business trip subsidies. The subsidies for internal and external business trips obtained by foreign individuals at reasonable rates;
(3) Other expenses. The portion of family visit expenses, language training expenses, children's education expenses, etc., obtained by foreign individuals, which are approved as reasonable after examination and approval;
(4) Income from Dividends and Bonuses. Dividend and bonus income obtained by foreign individuals from foreign-invested enterprises.
4. Tax exemption for foreign experts' salary income. The following foreign experts are exempted from individual income tax on their wages and salaries: ([94] Cai Shui Zi No. 20)
(1) foreign experts who are directly sent to China by the World Bank under the World Bank's special loan agreement;
(2) experts who are directly sent to China by the United Nations organizations;
(3) experts who come to China to work on United Nations-assisted projects;
(4) experts sent to China by a donor country to work exclusively for that country's non-reimbursable assistance programs;
(5) cultural and educational experts who come to China within two years under the cultural exchange programs signed by the two governments, and whose wages and salaries are borne by that country;
(6) experts who come to China under the international exchange programs of Chinese universities and colleges and whose wages and salaries are borne by that country
(7) Experts who come to work in China through private scientific research agreements, and whose wages and salaries are paid by the institutions of that country.
5. Agricultural tax payment programs are exempt from tax. Individual industrial and commercial households or individuals specializing in planting, farming, rearing and fishing, whose business projects fall within the scope of taxation of agricultural tax, agricultural special production tax and pastoral tax, and have paid taxes, will no longer be subject to personal income tax. ([94] Cai Shui Zi No. 20)
6. Dividends, dividends income tax exemption. Whether or not to levy individual income tax on dividend and bonus income obtained by individuals from grass-roots supply and marketing cooperatives and rural credit unions shall be determined by the people's governments at the provincial level and reported to the Ministry of Finance and the State Administration of Taxation for the record. ([94] Cai Shui Zi No. 20)
7. Non-salaried income is exempt from tax. The following subsidies, allowances or incomes not belonging to the salaried items are not subject to individual income tax: (Guo Shui Fa [1994] No. 89)
(1) subsidies for a single child;
(2) child care subsidy;
(3) travel allowances, meal allowance;
(4) subsidies, allowance differentials and allowances that are not included in the total basic salary of the civil servants in the implementation of the civil servants' salary system;
(4) subsidies, allowances differentials and allowances that are not included in the total basic salary of the civil servants in the implementation of the civil servants' salary system. Subsidies, allowance differentials, and family members' side dish allowances that are not included in the total basic salary.
8. Tax exemption for income paid abroad. Individuals who do not have a residence in China and have not resided in China for more than 90 consecutive or cumulative days in a taxable year or for less than 183 consecutive or cumulative days during the period specified in the tax agreement are exempted from individual income tax on the portion of their income from sources in China that is paid for by an employee outside China and is not borne by the employee's institution or place in China. (Article 7 of the Regulations, Guo Shui Fa [1994] No. 148)
9. Tax exemption for overseas income. Individuals who do not have a residence in China and have resided in China for not more than 90 consecutive or cumulative days in a taxable year, or who have resided in China for more than 183 consecutive or cumulative days but less than one year during the period stipulated in a tax treaty, are exempted from individual income tax on income derived from sources outside of China, except for those individuals who hold directorships or high-level managerial positions of enterprises located in China, regardless of whether such income is paid for by domestic enterprises or enterprises located outside of China. are exempted from individual income tax. (Guo Shui Fa [1994] No. 148)
10. Tax exemption for overseas income. Individuals who have no residence in China but have lived in China for one year but not more than five years are exempted from individual income tax on income earned outside China only on the portion paid by enterprises and individuals in China, and exempted from individual income tax on the income earned outside China paid by enterprises and individuals outside China. (Article 6 of the Regulations, State Taxation [1994] No. 148)
11. Tax exemption for awards for bravery and courage. Prizes or awards for those who have been rewarded for their courage and bravery by the foundations or similar organizations approved and established by the governments above the township level or by the competent government departments above the county level shall be exempted from individual income tax with the approval of the competent tax authorities. (Cai Shui Zi [1995] No. 25)
12. Green seedling compensation fees are exempt from tax. In the process of land expropriation, the income from seedling compensation fee paid by the unit to the land contractor is temporarily exempted from individual income tax. (State Taxation Letter [1997] No. 87)
13. Individual share capital tax exemption. Shareholding enterprises use capital reserve to increase personal share capital, is not a dividend, bonus income, no personal income tax. (Guo Shui Fa [1997] No. 198)
14. Welfare and sports lottery prizes are exempt from tax. Individuals purchasing social welfare prize fund-raising lottery tickets and sports lottery tickets are exempted from individual income tax if the income from a single win does not exceed 10,000 yuan. If it exceeds 10,000 yuan, the full amount of individual income tax shall be levied. (Guo Shui Fa [1994] No. 127, Guo Shui Fa [1998] No. 12)
15. Income from the transfer of shares is exempt from tax. Individuals are temporarily exempted from individual income tax on income from the transfer of shares of listed companies. (Cai Shui Zi [1998] No. 61)
16. Income from interest on treasury bonds and the spread between buying and selling stocks is exempted from tax. Individual investors are not subject to individual income tax on the interest on treasury bonds and the income from the difference between the price of stocks and the price of stocks from the distribution of securities investment funds. (Cai Shui Zi [1998] No. 55)
17. Spread income is tax-free. Individual investors from the sale of securities investment fund units gained from the spread income, the temporary exemption from personal income tax. (Cai Shui Zi [1998] No. 55)
18. Laid-off workers' income from business and remuneration for labor services is exempt from tax. Laid-off workers engaged in the community service industry business income and labor remuneration income, engaged in self-employment since the date of tax registration, engaged in independent labor services since the date of filing in the tax authorities with a certificate of layoffs, before the end of 2003, three years exempted from individual income tax. (Guo Shui Fa [1999] No. 43)
19. Education deposit interest tax exemption. Special education savings deposit interest, interest income tax exemption. (Guo Shui Fa [1999] No. 180)
20. Foreign depositors deposit interest tax exemption. Hong Kong, Macao, Taiwan and foreign depositors in foreign-funded banks in the SAR branch deposit interest, exempt from personal income tax.
21. Equity-based incentives are exempt from tax. Scientific research institutions and institutions of higher learning to transform scientific and technological achievements in the form of shares or equity and other forms of equity, to give individual scientific and technological personnel incentives, after examination by the competent tax authorities, the temporary exemption from personal income tax. (State Taxation [1999] No. 125)
22. The sale of housing income tax exemption. Individuals who sell their own homes and intend to repurchase their homes at market price within one year after the sale of their existing homes are exempted from individual income tax on all or part of the individual income tax payable on the sale of their existing homes, depending on the value of their repurchased homes. If the amount of the re-purchased house is greater than or equal to the sales of the original house, all the tax deposit will be refunded and exempted from individual income tax; if the amount of the re-purchased house is less than the sales of the original house, the tax deposit will be refunded according to the proportion of the value of the re-purchased house, and the balance of the re-purchased house will be paid into the State Treasury as individual income tax. (Cai Shui Zi [1999] No. 278)
23. Provident fund and insurance premiums are exempt from tax. The housing provident fund, medical insurance fund, basic pension insurance fund and unemployment insurance fund extracted and paid by enterprises and individuals in accordance with the prescribed proportion are exempted from personal income tax and interest income tax. (Cai Shui Zi [1999] No. 267)
24. Equity assets tax suspension. For the quantitative assets of enterprises with ownership acquired by individual employees in the form of shareholding system, the individual income tax is temporarily suspended. (Guo Shui Fa [2000] No. 60)
25. Tax Exemption on Resettlement Income. Employees of state-owned enterprises are exempted from individual income tax on the one-time resettlement income obtained from the bankrupt enterprises due to the bankruptcy of the enterprises. (Guo Shui Fa [2000] No. 77, Cai Shui [2001] No. 157)
26. Compensation income is exempt from tax. Employees of state-owned enterprises and enterprises to terminate the labor contract, the one-time compensation income, within three times the amount of the average annual salary of local employees in the previous year, exempt from individual income tax. The specific exemption standard shall be determined by the provincial local tax bureaus. (Guo Shui Fa [2000] No. 77)
27. Unemployment insurance premiums are exempt from tax. Unemployed persons who have the conditions stipulated in the Regulations on Unemployment Insurance are exempted from personal income tax on the unemployment insurance benefits they receive. (Guo Shui Fa [2000] No. 83)
28. Tax exemption for business income of family members accompanying the military. Starting from January 1, 2000, military dependents engaged in self-employment are exempted from individual income tax for three years from the date of receiving the tax registration certificate. (Cai Shui [2000] No. 84)
29. No-claims preferential income tax exemption. No-claims preferential income (except for insurance where all insurance premiums are returned to the individual) derived from the payment of commercial insurance premiums by the individual is not regarded as individual taxable income and is not subject to individual income tax.
30. Withholding and payment of interest tax handling fees are exempt from tax. Savings institutions engaged in withholding the work of the tax staff to obtain the withholding of interest tax handling fees, exempt from personal income tax. (Guo Shui Fa [2001] No. 31)
31.Science and technology innovation incentives tax exemption. In the Ministry of Education and the Hong Kong Triumph Foundation sponsored "tomorrow's little scientists" activities, individual students to obtain scientific and technological innovation bonus, exempt from personal income tax. (State Taxation Letter [2001] No. 692, State Taxation Letter [2002] No. 1087, State Taxation Letter [2006] No. 459)
32.Foreign individuals are exempt from tax on family visit expenses. For foreign individuals to obtain the family visit fees, not more than two visits per year and the payment of a reasonable part of the standard, exempt from individual income tax. (Guo Shui Fa [1997] No. 54, Guo Shui Han [2001] No. 336)
33. Individuals subscribe for and redeem fund units of the difference in income tax-free. Individual investors to subscribe for and redeem open-ended securities investment fund units obtained by the difference in price income, the temporary imposition of personal income tax. (Cai Shui [2002] No. 128)
34. Fund distribution income is tax-free. The income obtained by investors (including individuals and institutional investors) from the distribution of open-ended securities investment funds shall not be subject to individual income tax and enterprise income tax for the time being. (Cai Shui [2002] No. 128)
35. Income from agricultural specialties in rural fee reform areas is exempt from tax. Rural tax reform pilot areas to stop levying agricultural specialties tax, changed to agricultural tax, for individual households or individuals to obtain agricultural specialties income, no longer levied personal income tax. (Cai Shui [2003] No. 157)
36. Higher education teacher bonus tax exemption. The Ministry of Education to organize the selection issued by the first higher education teaching masters 20,000 yuan per person, exempt from personal income tax. (State Taxation Letter [2003] No. 1294)
37. Laid-off unemployed people engaged in self-employment tax exemption. From January 1, 2003 to the end of 2005, laid-off unemployed people engaged in self-employment (except for construction, entertainment, advertising, sauna, massage, Internet café, oxygen bar), from the date of receipt of the tax registration certificate, exempted from individual income tax for three years. (Cai Shui [2002] No. 208)
38. Income from the Olympic Games is exempt from tax. Prize money and other reward income received by participating athletes in the Olympic Games shall be exempted from individual income tax in accordance with the current relevant regulations. (Cai Shui [2003] No. 10)
39. Income from subsidies for the prevention and treatment of SARS is exempted from tax. From January 1, 2003 until the end of the epidemic, where the task of "SARS" prevention and treatment of infectious diseases hospitals, general hospitals and disease prevention centers, emergency centers and other units to participate in the "SARS" prevention and treatment of front-line medical and epidemic prevention workers, according to the standards set forth in the relevant "SARS" and "epidemic prevention" and "epidemic prevention" and "epidemic prevention". SARS" prevention and control work special temporary work subsidies obtained in accordance with the standards set forth in the relevant regulations, exempted from personal income tax. (Cai Shui [2003] No. 101)
40. Preventive "SARS" goods tax exemption. From January 1, 2003 until the end of the epidemic, in order to prevent the spread of SARS, the unit issued to individuals for the prevention of SARS medicines, medical supplies and protective equipment in kind (excluding cash), may not be included in the individual's salary for the month, Salary income, exempt from personal income tax. (Cai Shui [2003] No. 101)
41. Taxi drivers are exempted from tax. From May 1, 2003 to September 30, 2003, the provincial governments can be based on the "SARS" epidemic on cab drivers exempted from personal income tax or reduce the levy quota. (Cai Shui [2003] No. 113)
42. Tax exemption for retired soldiers seeking self-employment. From January 1, 2001 to the end of 2003, the retired non-commissioned officers and conscripts, engaged in the tax scope of the social residents of the services obtained by the business income and remuneration for labor income, exempted from individual income tax for three years. (State Taxation [2001] No. 11)
43. Transferred cadres to choose their own employment tax exemption. Starting from May 1, 2003, the military cadres who are engaged in self-employment are exempted from individual income tax for 3 years from the date of receiving the tax registration certificate. ([2001] No. 8, Cai Shui [2003] No. 26)
44. "SARS" during the individual business vegetables tax exemption. During the "SARS" period, Beijing individual businessmen operating vegetables income, exempt from personal income tax. The specific implementation methods and implementation date will be decided by the Beijing Municipal Government according to the development of the epidemic. (Cai Shui [2003] No. 112)
45. In order to promote the development of friendly relations between China and Japan, and to deepen exchanges and understanding between the two peoples, the Soong Ching Ling Foundation has set up a special Fund in accordance with the wishes of the late Mr. Sun Pinghua, President of the China-Japan Friendship Association. Individuals receiving the prize money from the Fund belong to the prizes in culture issued by the ministries and commissions of the State Council, and according to the first paragraph of Article 4 of the Individual Income Tax Law of the People's Republic of China, individuals are exempted from individual income tax on the income from the prizes received by them from the fourth edition of the Fund. (State Tax Letter [2004] No. 917)
46. In order to encourage the majority of workers across the country to actively participate in mass scientific and technological research, technological innovation and invention activities, to promote China's scientific and technological progress, and promote economic development, according to the "Chinese People's *** and the State's Individual Income Tax Law," the first paragraph of Article 4 of the State Council ministries and commissions issued by the State Council of the scientific, technological and other prizes are exempted from tax, the national (Guo Shui Han [2004] No. 1204)
47. The State Forestry Administration is an organization directly under the State Council at the ministerial level, and in accordance with Article 4(1) of the Individual Income Tax Law of the People's Republic of China on the exemption of individual income tax on prizes awarded by ministries and commissions of the State Council on science and technology, the winners of the prizes for forestry science and technology and the prizes for contribution issued by the State Forestry Administration (the list of prizes is attached in the Appendix) are exempted from individual income tax on the prize-winning income. (See the Annex for the list of winners. (State Taxation Letter [2004] No. 1389)
48. In order to further encourage and develop the high-tech talent pool, support and promote the continuous development of China's manned spaceflight industry, and enhance the comprehensive national strength, in accordance with the provisions of Article 4 of the Individual Income Tax Law of the People's Republic of China*** and the State of China, the income from the prizes obtained by the winners of the Zeng Xuanzhi Human Spaceflight Fund Award is regarded as the science and technology prizes issued by foreign organizations, technology prizes awarded by foreign organizations and are exempted from individual income tax. (Guo Shui Han [2005] No. 116)
49. According to the provisions of Article 4, Paragraph 1 of the Individual Income Tax Law of the People's Republic of China on the exemption of individual income tax on prizes issued by ministries and commissions of the State Council for environmental protection and other aspects, the third China Environment Prize and Green Orient Prize are exempted from individual income tax. The winners of the 3rd "China Environment Prize" and "China Environment Prize - Green Orient Prize" are exempted from individual income tax on the prizes awarded to them (see the Annex for details). (State Taxation Letter [2006] No. 323)
50. In accordance with the provisions of Article 4, Paragraph 1 of the Individual Income Tax Law of the People's Republic of China, the income from prizes received by the winners of the Chen Jiageng Science Award for the year 2006 is exempted from individual income tax. In the case that the business supervisor, organizational structure and selection method of the Chen Jiageng Science Award remain unchanged, the bonus income of the individual winners of the Chen Jiageng Science Award in the following years may continue to be exempted from individual income tax in accordance with the provisions of Article 4, Paragraph 1 of the Individual Income Tax Law of the People's Republic of China*** and the People's Republic of China. (National Tax Letter [2006] No. 561)