People’s Republic of China Tax

 People's Republic of China Tax
Number eighty-fifth

"Standing Committee on Edit <People's Republic of China Individual Income Tax Law" of the National People's Congress, "People's Republic of China by the Standing Committee of the Tenth National People's Congress thirty-first meeting on December 29, 2007, is hereby and shall come into effect from March 1, 2008.

President of the People's Republic of China Hu Jintao
December 29, 2007


National People's Congress Standing Committee of the
Decided to "People's Republic of China Individual Income Tax Law"
(General Assembly of the Tenth National People's Congress Standing Committee of the thirty-first session of 2007, through December 29)

Tenth National People's Congress Standing Committee of the thirty-first meeting decided on the "People's Republic of China Individual Income Tax Law" modified as follows:
Article first paragraph is amended as: "Wage and salary income, in order to balance the amount of two thousand yuan monthly income after the deduction of expenses for the taxable income." Meanwhile, "a personal income tax rate table" notes be amended accordingly.
This Decision shall be effective March 1, 2008.
"People's Republic of China Individual Income Tax Law" According to this decision be amended accordingly and re-promulgated.



People's Republic of China Individual Income Tax Law
(September 10, 1980 Third Session of the Fifth National People's Congress adopted
According to October 31, 1993 the Standing Committee of the Fourth Session of the Eighth National People's Congress
"Decision on Revising <People's Republic of China Individual Income Tax Law>" first amendment
According to the Ninth National People's Congress Standing Committee of the Eleventh Meeting of August 30, 1999
"Decision on Revising <People's Republic of China Individual Income Tax Law>" Second Amendment
Eighteenth Meeting of the Standing Committee of the Tenth National People's Congress October 27, 2005
"Decision on Revising <People's Republic of China Individual Income Tax Law" of the "Third Amendment
According to the Tenth National People's Congress Standing Committee of the twenty-eighth session of June 29, 2007
"Decision on Revising <People's Republic of China Individual Income Tax Law" of the "fourth amendment
According to the Tenth National People's Congress Standing Committee of the thirty-first session of December 29, 2007
"Decision on Revising <People's Republic of China Individual Income Tax Law" of the "Fifth Amendment)

The first in China who have domicile or residence in the territory without a full year of personal income derived from sources within China and overseas, to pay personal income tax in accordance with this Law.
Nor resident in China no domicile or residence in the territory inhabited by no less than one year of personal income gained from Chinese territory, pay personal income tax in accordance with the provisions of this Law.
Following a second personal income, personal income tax payable:
First, wages and salaries;
Second, individual industrial and commercial households, operating income;
Third, enterprises and institutions from contracted or leased operation income;
Fourth, perjury;
Fifth, the resulting royalties;
Sixth, the franchise fee income;
Seven, interest, dividends and bonuses;
Eight, property rental income;
Nine, transfer of property income;
Ten, incidental income;
XI by the financial department of the State Council and other taxable income.
Article Individual income tax rates:
First, wage and salary income, apply progressive rates, the tax rate (after tax table attached) from 5 percent to 45 percent.
Second, the production, business operations and management of enterprises and institutions contracted individual industrial and commercial households, operating lease income, apply progressive rates from 5 percent to 35 percent (tax rate table attached).
Third, royalties income, proportional tax rate of 20 percent, according to tax liability reduced by 30 percent.
Fourth, income from remuneration, proportional tax rate of 20%. Revenue for perjury once extremely high, addition levy can be implemented specific measures by the State Council.
Fifth, the resulting royalties, interest, dividends, bonuses, lease of property, income from transfer of property, incidental income and other income, proportional tax rate of 20%.
Article IV of the following personal income, exempt from personal income tax:
A bonus, the provincial government, the State Council ministries and units of the People, as well as foreign and international organizations awarded science, education, technology, culture, health, sports, environmental protection and other aspects;
Second, the interest on government bonds and financial bonds issued by the State;
Third, in accordance with the provisions of national unity issue of subsidies and allowances;
Fourth, welfare, pensions, benefits;
Fifth, the insurance indemnity;
Six military pay and demobilization fees;
Seven, in accordance with the provisions of national unity distributed to cadres and workers of the settling-in allowance, severance pay, retirement pay, retired pay, retirement living allowance;
Eight, the resultant accordance with relevant laws of tax exemption of foreign embassies and consulates diplomatic representatives, consular officers and other personnel;
IX International Convention for the Chinese government to participate in the agreement signed in the income tax exemption provisions;
Ten, approved by the financial department of the State tax-free income.
Article one of the following circumstances, the approval may be reduced personal income tax:
First, the resulting disability, lonely old people and families of martyrs;
Second, due to serious natural calamities have caused heavy losses;
Third, other approved financial department of the State tax cuts.
Article taxable income is calculated:
First, wages and salaries, in order to balance the amount of two thousand yuan monthly income after the deduction of expenses for the taxable income.
Second, the production and operating income of individual industrial and commercial households, with annual gross income each tax deduction of costs, expenses and losses, as taxable income.
Third, enterprises and institutions contract management, lease operating income to total income of each tax year, the balance after deduction of necessary expenses, as taxable income.
Fourth, income from remuneration, royalties income, royalty income, property rental income per income does not exceed $ 4,000, less the cost of eight hundred yuan; 4,000 yuan or more, minus twenty percent costs, and the remaining amount of taxable income.
Fifth, the property transfer, the balance of the deduction for income property of the original value and the reasonable costs of the transfer of property after the taxable income.
Sixth, interest, dividends, bonuses, contingent income and other income, for each amount of income taxable income.
Personal income for part of its education and other public welfare donation, in accordance with the relevant provisions of the State Council deducted from taxable income.
In China to obtain wage and no domicile in China, and salary income taxpayers who have domicile in China and outside China to obtain wage and salary income taxpayers, according to their average income levels, living standards and the exchange rate change is determined additional deduction for expenses, additional deduction for expenses and the scope and standards prescribed by the State Council.
Article taxpayer income derived from sources outside China are allowed to deduct their personal income tax already paid abroad in the amount of tax payable. But the deduction shall not exceed the amount of tax payable the foreign income for the taxpayer in accordance with the provisions of this law calculation.
Article VIII of the personal income tax, the income earner shall be the taxpayer, and the paying unit or individual withholding agent. Personal income exceeds the amount of the State Council, made two more in wages and salaries or no withholding agent, as well as having other circumstances the State Council, the taxpayer shall file tax returns in accordance with national regulations. The withholding agent should apply withholding full amount declared in accordance with national regulations.
Article IX withholding agents monthly tax deduction, the taxpayer self-declaration of monthly payable tax should be paid into the state treasury in the next month seven days, and again to submit tax returns.
Wage and salary income tax payable monthly levied by withholding agent or taxpayer into the state treasury in the next month seven days, and again to submit tax returns. Industry-specific wage and salary income tax payable, can be implemented on an annual basis, monthly prepaid basis, and specific measures by the State Council.
Production and operation income tax amount payable individual industrial and commercial households, on an annual basis, in monthly advances, by the taxpayer in advance within seven days next month, the final settlement within three months after the end of the year, more, return less fill.
Enterprises and institutions from contracted or leased operation income tax amount payable on an annual basis by the taxpayer into the state treasury in the 30 days after the end of the year, and the tax authorities submit tax returns. The taxpayer within a year from contracted or leased operation income shall be made within seven days in advance each obtained after the final settlement within three months after the end of the year, Duotuishaobu.
Earns income from outside China taxpayer shall, within 30 days after the end of the year, the tax payable by the State Treasury and tax authorities submit tax returns.
Article X of the income shall be computed in Renminbi. Income in foreign currency exchange rates in accordance with the foreign exchange administration shall be converted into RMB paying taxes.
Article 11 in accordance with the withholding agent withholding tax paid to two percent fee.
Article XII of savings deposit interest income levy, reduction, stop collecting personal income tax and specific measures shall be formulated by the State Council.
Article XIII of personal income tax collection and administration, in accordance with the provisions of "People's Republic of China on Tax Collection and Management Law" implemented.
Article XIV The State Council formulated regulations in accordance with this Law.
Article 15 This Law shall come into force from the date of publication.

Personal income tax rate table a
(Wages and salaries applicable)

Grade Monthly Taxable Income Tax Rate (%)
1 is not more than $ 500 5
2 is longer than 500-2000 yuan of section 10
3 out 2000-5000 yuan portion 15
4 out 5000-20000 yuan portion 20
5 out 20000-40000 yuan portion 25
6 Chaoguo 40000-60000 yuan portion 30
7 Chaoguo 60000-80000 yuan portion 35
8 Chaoguo 80000-100000 yuan portion 40
9 more than 100,000 yuan of section 45

(Note: This table is referred to the full monthly taxable income is in accordance with the provisions of Article 6, the balance of the amount of two thousand yuan monthly income after the deduction of expenses or minus the balance of the additional deduction for expenses.)

Individual Income Tax Rates Table II
(Individual industrial and commercial households, operating income of enterprises and institutions from contracted or leased operation income applicable)

Series annual taxable income tax rate (%)
1 is not more than 5000 yuan 5
2 out 5000-10000 yuan of section 10
3 out 10000-30000 yuan portion 20
4 out 30000-50000 yuan portion 30
5 more than 50,000 yuan of section 35

(Note: This table is referred to annual taxable income is in accordance with the provisions of Article 6, the total income of each tax year deduction of costs, expenses and losses.)