Individual income tax includes the following aspects:
I. Income from wages and salaries
Income from wages and salaries refers to wages, salaries, bonuses, year-end raises, labor bonuses, allowances, subsidies, and other incomes obtained by an individual as a result of his/her office or employment, as well as other incomes related to his/her office or employment.
That is to say, the income obtained by an individual, as long as it is related to the post, employment, regardless of the unit's capital expenditure channels or in the form of cash, in-kind, securities and other forms of payment, are wages, salaries income items of the object of taxation.
Two, remuneration for services
Remuneration for services, refers to individuals engaged in design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, news, broadcasting, translation, review, painting, calligraphy, sculpture, film and television, sound, video, performances, shows, advertising, exhibitions, technical services, referral services, economic services, agency services, as well as other income from labor. Income derived from labor services.
Third, the manuscript income
Manuscript income, refers to the individual's work in the form of books, newspapers, published, published income. The "works" referred to here, including Chinese and foreign words, pictures, music and other works that can be published in books, newspapers and magazines; "personal works", including my own writings, translations and so on. Individuals who receive remuneration for posthumous works shall be taxed under the item of income from manuscripts.
Four, royalty income
Royalty income, refers to individuals to provide the right to use patent rights, copyrights, trademarks, non-patented technologies and other concessions to obtain income. Income derived from the provision of the right to use copyrights does not include income from royalties. Income derived by authors from the public auction (bidding) of the original or copies of their own manuscripts of written works shall be taxed under the item of royalty income.
V. Business Income
Including the production and business income of individual industrial and commercial households and the income from contracting and leasing to enterprises and institutions.
The income from production and operation of individual industrial and commercial households includes four aspects:
(1) The income derived from the production and operation of industry, handicrafts, construction, transportation, commerce, catering, service, repair and other industries by urban and rural individual industrial and commercial households which have been approved by the industrial and commercial administrative departments to start business and have received business licenses.
(2) Individuals approved by the relevant government departments, obtaining a business license, engaging in schooling, medical care, consulting and other paid service activities to obtain income.
(3) Income obtained by other individuals engaged in individual industrial and commercial production and business, both individuals temporarily engaged in production and business activities.
(4) All taxable incomes related to production and operation obtained by the above individual industrial and commercial households and individuals.
The income from contracting and leasing to enterprises and institutions refers to the income obtained by individuals from contracting and leasing as well as from subcontracting and subleasing, including the income in the nature of wages and salaries obtained by individuals on a monthly or monthly basis.
Six, interest, dividends, dividends
Interest, dividends, dividends, refers to the individual has a debt, equity and interest, dividends, dividends. Interest refers to the interest on one's deposits (the state announced the abolition of interest tax from the day after October 8, 2008), the interest on goods, and the interest on the purchase of various bonds.
Dividends, also known as stock dividends, are the investment benefits that stockholders regularly receive from a joint-stock company with their shares, as stipulated in the joint-stock company's articles of incorporation.
Bonus, also known as the company (enterprise) dividends, is a joint-stock company or enterprise according to the profits to be distributed by shares in excess of the dividend portion of the profit. The payment of dividends and bonuses in the form of shares by a joint-stock enterprise to individual shareholders, i.e., the distribution of bonus shares, shall be taxed as income in the amount of the face value of the shares distributed.
Seven, property rental income
Property rental income, refers to individuals to rent buildings, land use rights, machinery, equipment, vehicles and other property income. Property includes movable and immovable property.
Eighth, the transfer of property income
The transfer of property income, refers to the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and boats, and other property to other people or units and income, including the transfer of immovable and movable property and income. There is no tax on the income derived from individual stock trading.
Nine, incidental income
Incidental income refers to the income obtained by an individual is non-recurring, belonging to a variety of opportunistic income, including winning a prize, winning the lottery, winning the lottery and other incidental income (including prizes, in-kind and securities).
Individuals who buy social welfare prize fund-raising raffle tickets and China Sports Lottery tickets are exempted from personal income tax if their income from a single win does not exceed 10,000 yuan, and if it exceeds 10,000 yuan, it shall be taxed in full under the item of incidental income (as of April 21, 2011, the tax rate is 20%).
X. Other Income
Expanded Information:
One of the personal income tax algorithms:
The new Personal Income Tax Law, Article 6 (1) (1) provides that the comprehensive income of the resident individual to the income of the amount of income in each taxable year minus fees of 60,000 yuan and the balance after special deductions, special additional deductions and other deductions determined in accordance with the law, as the taxable income.
That is, the formula: taxable income = monthly income - 5,000 yuan (starting point) - special deductions (three insurance and one gold, etc.) - special additional deductions - other deductions determined by law.
II. Relevant changes to the content of personal income tax in 2018:
Gradually establish a personal income tax system that combines comprehensiveness and categorization. The new law combines income from labor, such as wages and salaries, remuneration for labor, manuscripts, and royalties, into a "comprehensive income" that is subject to a uniform and ultra-progressive tax rate, while all other incomes are still subject to a categorical tax system.
The new law takes into account the basic consumption expenditure per capita of urban residents, the consumer price index and other factors, and raises the deduction standard for comprehensive income to 60,000 yuan per year, which reduces the tax burden on the middle- and low-income groups, and enhances the sense of achievement of taxpayers. At the same time, optimize the adjustment of the tax rate structure of comprehensive income, expand the 3%, 10%, 20% of the three low tax brackets, narrow the 25% tax bracket.
The new law implements the people-centered development ideology and focuses on protecting the basic human rights of taxpayers. In addition to the original special deductions for basic individual pension insurance, basic medical insurance, unemployment insurance and housing provident fund, it also provides for special additional deductions for children's education, continuing education, medical treatment for serious illnesses, interest on housing loans or housing rent, and expenditures for supporting the elderly.
The establishment of special additional deductions not only helps to further reduce the tax burden on taxpayers, but also takes into account the differences in individual burdens, highlighting the implementation of the principle of fairness in the new law. This practice is conducive to promoting a more balanced and full development of the economy and society, enhancing the people's sense of gain, happiness and security, and will serve as a model for the formulation and revision of tax laws for other tax categories.
Baidu Encyclopedia - Individual Income Tax
Reference Source: People's Daily Online - Individual Income Tax Reform Takes a Solid Step (Everyone's Handwriting)