Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China (Amended)
State Council Decree [1994] No. 142
1994-1-28 State Council
Article 1 The Regulations are formulated in accordance with the provisions of the Individual Income Tax Law of the People's Republic of China (hereinafter referred to as the Tax Law).
Article 2 Individuals who have a domicile in China, as referred to in Article 1, paragraph 1 of the Tax Law, are those who habitually reside in China by virtue of their domicile, family or economic interests.
Article 3 Residence in the territory for one year, as referred to in the first paragraph of Article 1 of the Tax Law, means residence in the territory of China for 365 days in a tax year. No deduction for the number of days is made for temporary departure from the country.
The temporary departure referred to in the preceding paragraph means a departure of not more than 30 days at a time or an accumulation of not more than 90 days on several occasions in a tax year.
Article 4 Income derived from within the territory of China referred to in Article 1, paragraph 1 and paragraph 2 of the Tax Law refers to income derived from within the territory of China; income derived from outside the territory of China refers to income derived from outside the territory of China.
Article 5: The following income, regardless of whether the place of payment is in China or not, is considered to be income derived from within China:
(1) Income derived from the provision of labor services within China for the purpose of holding office, being employed, or performing duties;
(2) Income derived from the leasing of property to lessees for use within China;
(3) Income derived from transferring property such as buildings, land use rights, or other property in China;
(4) Income derived from the sale and purchase of property in China; and (5) Income derived from the sale and purchase of property in China. land use rights and other property or income derived from the transfer of other property within China;
(d) income derived from licensing various concessions for use within China;
(e) income from interest, dividends and bonuses derived from companies, enterprises and other economic organizations or individuals within China.
Article 6 Individuals who have no residence in China but have resided there for more than one year and less than five years may, with the approval of the competent tax authorities, pay individual income tax only on the portion of their income derived outside China that is paid by corporations, enterprises, other economic organizations or individuals in China; individuals who have resided there for more than five years shall, from the sixth year onwards, pay individual income tax on all their income derived outside China. Individual Income Tax.
Article 7 Individuals who do not have a residence in China but have resided in China for not more than 90 consecutive or cumulative days in a taxable year shall be exempted from individual income tax on the portion of their income derived from sources within the territory of China that is paid for by their employers outside China and that is not borne by the employer's institutions or establishments in China.
Article 8: Scope of Individual Income referred to in Article 2 of the Tax Law:
(1) Wages and Salary Income refers to wages, salaries, bonuses, year-end raises, labor bonuses, allowances, subsidies, and other incomes derived by an individual in connection with his employment or occupation.
(2) 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, catering, service, repair and other industries;
2. Income from individuals who, with the approval of the relevant government departments, have obtained licenses and are engaged in the operation of schools, medical care, consulting and other paid service activities. Income derived from schooling, medical care, counseling and other paid service activities;
3. Income derived from the production and operation of other individuals engaged in individual business;
4. Taxable income derived by the above individual business households and individuals in connection with production and operation.
(3) Income from contracting and leasing to enterprises and institutions refers to the income obtained by individuals from contracting and leasing as well as subcontracting and subletting, including income in the nature of wages and salaries obtained by individuals on a monthly or per-occasional basis.
(4) Income from remuneration for labor services refers to the income derived from design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, journalism, broadcasting, translation, reviewing, painting, calligraphy, sculpture, film, television, sound recording, video recording, performance, performance, advertisement, exhibition, technical services, referral services, brokering services, agency services, as well as other labor services.
(5) Income from manuscripts refers to the income obtained by an individual for his work published in the form of books, newspapers or magazines.
(6) 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.
(7) Interest, dividend and bonus income, refers to the interest, dividend and bonus income obtained by an individual who owns debt or equity.
(viii) Income from property leasing refers to the income obtained by an individual from leasing buildings, land use rights, machinery and equipment, vehicles and vessels, and other property.
(ix) Income from the transfer of property refers to the income derived from the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and vessels, and other property.
(j) incidental income, refers to the individual to win the prize, winning the lottery, winning the lottery and other incidental income.
If it is difficult to define the items of taxable income obtained by an individual, the competent tax authorities shall determine them.
Article 9 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. The proceeds in kind, shall be obtained in accordance with the price stated on the vouchers to calculate the taxable income; no vouchers in kind or vouchers stated on the price is obviously low, 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 11: The abnormally high one-time income from remuneration for labor services referred to in Article 3, Item 4 of the Tax Law means that an individual who obtains remuneration for labor services at one time has a taxable income of more than 20,000 yuan.
For the portion of taxable income in the preceding paragraph exceeding 20,000 yuan to 50,000 yuan, the taxable amount shall be calculated in accordance with the provisions of the Tax Law and then levied at an additional 50% of the taxable amount; for the portion of the taxable income exceeding 50,000 yuan, the levy shall be increased by 10%.
Article 12: The interest on national bonds referred to in the second item of Article 4 of the Tax Law refers to the interest income derived from the bonds issued by the Ministry of Finance of the People's Republic of China and the State; the interest on financial bonds issued by the State refers to the interest income derived from the financial bonds issued by the State Council and approved by the individual.
Article 13 Subsidies and allowances issued in accordance with the unified regulations of the State, as referred to in the third item of Article 4 of the Tax Law, refer to special government allowances issued in accordance with the regulations of the State Council, and subsidies and allowances exempted from individual income tax under the regulations of the State Council.
Article 14: The welfare expenses referred to in Article 4, Item 4 of the Tax Law refer to the living subsidies paid to individuals from the welfare expenses or labor union funds retained by enterprises, institutions, state organs and social organizations in accordance with the relevant provisions of the State; and the relief funds refer to the living subsidies paid to individuals by the state civil affairs departments.
Article 15: The income of diplomatic representatives, consular officials and other personnel of embassies and consulates of countries in China, which shall be exempted from tax in accordance with the provisions of the laws of China, as referred to in Item 8 of Article 4 of the Tax Law, refers to the income which shall be exempted from tax in accordance with the "Regulations of the People's Republic of China on Diplomatic Privileges and Immunities of the People's Republic of China" and the "Regulations of the People's Republic of China on Consular Privileges and Immunities of the People's Republic of China".
Article 16 The reduction of individual income tax referred to in Article 5 of the Tax Law shall be made at a rate and for a period prescribed by the people's governments of provinces, autonomous regions and municipalities directly under the central government.
Article 17 The costs and expenses referred to in Article 6, Paragraph 1, Item 2 of the Tax Law refer to the direct expenditures incurred by taxpayers engaged in the production and operation of business and the indirect expenses allocated to the costs, as well as the selling expenses, management expenses and financial expenses; and the losses referred to refer to the non-operating expenditures incurred by the taxpayers in the process of production and operation of business.
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 The total amount of income for each taxable year referred to in Article 6, Paragraph 1, Item 3 of the Tax Law refers to the operating profits and income of the nature of wages and salaries shared by the taxpayer in accordance with the provisions of the contract for contracting and leasing; the deduction of necessary expenses referred to refers to the monthly deduction of 800 yuan.
Article 19: The original value of property referred to in Article 6, Paragraph 1, Item 5 of the Tax Law refers to:
(1) marketable securities, the purchase price and the related expenses paid in accordance with the regulations at the time of purchase;
(2) buildings, the construction cost or the purchase price, as well as other related expenses;
(3) land-use rights, the amount paid for the acquisition of land-use rights, the cost of developing the land, and other related expenses; and (4) land use rights, the amount paid for the acquisition of land-use rights, the cost of developing the land, and other related expenses. (c) Land use rights, the amount paid for the acquisition of land use rights, the cost of developing the land, and other related costs;
(d) Machinery, equipment, vehicles and ships, the purchase price, transportation costs, installation costs, and other related costs;
(e) Other property, determined by reference to the above method.
If the taxpayer fails to provide complete and accurate evidence of the original value of the property, and cannot correctly calculate the original value of the property, the competent tax authorities shall authorize the original value of the property.
Article 20 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: Each income referred to in Article 6(1)(4) and (6) of the Tax Law means:
(1) Income from remuneration for labor services shall be considered as one time for obtaining the income if it is a one-time income; and income obtained within one month shall be considered as one time for obtaining the income of the same item if it is a continuous income.
(2) Income from remuneration for manuscripts shall be recognized as once for the income derived from each publication or presentation.
(3) Income from royalties, the income obtained from one licensed use of a franchise as one time.
(d) Income from property leasing, the income obtained in one month as one time.
(v) Income from interest, dividends and bonuses shall be recognized as once for the income obtained at the time of payment of interest, dividends and bonuses.
(6) Incidental income shall be taken as once for each time the income is obtained.
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 Where two or more individuals **** the same income from the same item, tax shall be computed on the income derived by each of them separately in accordance with the provisions of the Tax Law after deducting expenses.
Article 24 The donations made by individuals of their income to education and other public welfare undertakings as stated in Article 6, paragraph 2 of the Tax Law refers to the donations made by individuals of their income to education and other public welfare undertakings, as well as to areas suffering from serious natural disasters and poverty-stricken areas, through social organizations and state organs within China.
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: Wages and Salaries Income Acquired Outside of China, as referred to in Article 6, Paragraph 3 of the Tax Law, means wages and salaries income acquired by taking up a post or being employed outside of China.
Article 26: The additional deduction referred to in Article 6(3) of the Tax Law refers to the deduction of the amount stipulated in Article 28 of the Regulations on top of the 800 Yuan deduction per month.
Article 27 The scope of application of the additional deduction referred to in Paragraph 3 of Article 6 of the Tax Law refers to:
(1) expatriates working in foreign-invested enterprises and foreign enterprises within the territory of China;
(2) expatriate experts recruited to work in enterprises, public institutions, social organizations, and state organs within the territory of China;
(3) foreign experts having their residence in the territory of China but working outside the territory of China;
(3) foreigners who have a residence within the territory of China but work outside the territory of China. China and who are employed or employed outside China to obtain wages and salaries;
(d) other persons determined by the Ministry of Finance.
Article 28 The additional deduction standard referred to in Article 6, Paragraph 3 of the Tax Law is 3,200 yuan.
Article 29 Overseas Chinese and compatriots in Hong Kong, Macao and Taiwan shall refer to the provisions of Articles 26, 27 and 28 of these Regulations.
Article 30 Individuals who have a domicile in China, or who do not have a domicile but have resided in the country for one year, shall calculate the amount of tax payable on the income they derive from within and outside China separately.
Article 31 The amount of individual income tax paid abroad referred to in Article 7 of the Tax Law refers to the amount of tax that should be paid and has actually been paid in accordance with the laws of the country or region from which the income was derived by the taxpayer from outside China.
Article 32: The taxable amount calculated in accordance with the provisions of the Tax Law referred to in Article 7 of the Tax Law refers to the taxable amount of the income obtained by a taxpayer from outside of China, differentiating between different countries or regions and different taxable items, and calculating the taxable amount in accordance with the standards for deduction of expenses and the applicable tax rates stipulated in the Tax Law; and the sum of the taxable amounts of the different taxable items of the same country or region shall be the deduction limit of that country or region. Limit.
If the amount of individual income tax actually paid by a taxpayer in a country or region outside China is less than the deduction limit of that country or region calculated in accordance with the preceding paragraph, the taxpayer shall pay the difference in China; if the amount exceeds the deduction limit of that country or region, the excess shall not be deducted from the tax payable in the current tax year, but may be deducted from the balance of the deduction limit of that country or region in the subsequent tax years. However, the excess shall not be deducted from the tax payable in the current taxable year, but can be deducted from the balance of the deduction limit of the country or region in the subsequent taxable year, and the maximum period of deduction shall not exceed five years.
Article 33 When a taxpayer applies for deduction of individual income tax paid abroad in accordance with the provisions of Article 7 of the Tax Law, the taxpayer shall provide the original tax payment vouchers issued by the tax authorities abroad.
Article 34 The withholding agent shall withhold the tax in accordance with the provisions of the Tax Law when paying the taxable amount to an individual, pay the tax to the treasury on time, and make special records for inspection.
The payments referred to in the preceding paragraph include cash payments, remittance payments, transfer payments and payments in securities, in kind and other forms.
Article 35 A taxpayer who declares his own tax liabilities shall declare his taxes to the competent local tax authorities of the place where the income is obtained. Where income is obtained from outside China, or where income is obtained from two or more places within China, the taxpayer may choose a place to declare tax; any change in the place where the taxpayer declares tax shall be subject to the approval of the original competent tax authorities.
Article 36 A tax-obligor who files a self-declaration shall be allowed to deduct from the taxable amount the tax withheld from him within the territory of China at the time of filing the tax return in accordance with the provisions.
Article 37 Where a tax-obligor has two or more items of income listed in Article 2 of the Tax Law, the tax shall be calculated separately according to each item. Where two or more places in China acquire the first, second or third items of Article 2 of the Tax Law, the tax shall be computed on the basis of the same item of income.
Article 38 The specific industries referred to in Paragraph 2 of Article 9 of the Tax Law refer to the extractive industry, ocean transportation industry, ocean fishing industry and other industries determined by the Ministry of Finance.
Article 39 The method of annual calculation and monthly prepayment referred to in the second paragraph of Article 9 of the Tax Law means that the tax payable on the wages and salaries of the employees in the specific industries listed in Article 38 of the Regulations shall be paid in advance on a monthly basis, and within 30 days from the date of the end of the year, the total annual wages and salaries shall be totaled, and the actual tax payable shall be calculated on the basis of the average of the twelve-month period, with the excess being refunded or compensated in a small amount.
Article 40 The taxpayer shall pay the tax due to the state treasury within 30 days after the end of the year as stated in Paragraph 4 of Article 9 of the Tax Law means that the taxpayer who obtains the income from contracting or leasing business in one lump sum at the end of the year shall pay the tax due to the state treasury within 30 days from the date of obtaining the income.
Article 41 In accordance with the provisions of Article 10 of the Tax Law, if the income is in foreign currency, it shall be converted into Renminbi to calculate the taxable income in accordance with the foreign exchange rate announced by the People's Bank of China on the last day of the previous month when the tax clearance voucher is filled out. In accordance with the provisions of the tax law, after the end of the year remittance, the foreign currency income that has been prepaid monthly or monthly tax, will not be re-calculated; for the part of the income that should be paid back the tax, according to the last day of the last tax year, the People's Bank of China announced foreign exchange rates, converted into RMB to calculate the amount of taxable income.
Article 42 When the tax authorities pay the handling fee to the withholding agent in accordance with the provisions of Article 11 of the Tax Law, the tax authorities shall fill in the income refund book and send it to the withholding agent on a monthly basis. The withholding agent shall carry out the procedures of refund to the designated bank with the revenue refund letter.
Article 43 The styles of the individual income tax return form, the individual income tax withholding report form and the individual income tax payment certificate shall be uniformly formulated by the State Administration of Taxation.
Article 44 The tax year referred to in the Tax Law and these Regulations shall begin on January 1 and end on December 31 of the Gregorian calendar.
Article 45 Starting from the 1994 tax year, individual income tax shall be calculated and collected in accordance with the provisions of the Tax Law and these Regulations.
Article 46 These Regulations shall be interpreted by the Ministry of Finance in conjunction with the State Administration of Taxation.
Article 47 These Regulations shall come into force on the date of promulgation, and the Interim Provisions of the State Council of the People's Republic of China on the Reduction of Individual Income Tax on the Income from Wages and Salaries of Foreigners Coming to Work in China, issued by the State Council on August 8, 1987, shall be repealed at the same time.