personal income tax is a tax levied on various taxable income obtained by individuals. Although industrial enterprises are not taxpayers of personal income tax, they are withholding agents of personal income tax.
1. Taxpayer of individual income tax
According to the regulations, individual income tax takes the income as the taxpayer, which specifically refers to individuals who have a domicile in China, or have lived in China for one year without a domicile, or have lived in China for less than one year without a domicile, but have obtained taxable income from China, including China citizens, individual industrial and commercial households, compatriots from Hong Kong, Macao and Taiwan and foreign individuals.
according to the regulations, individual income tax is subject to a collection and management system combining individual tax declaration and withholding, and any unit or individual who pays taxable income is the withholding agent of individual income tax.
although an industrial enterprise is not a taxpayer of personal income tax, it is a withholding agent of personal income tax, and it must fulfill its obligation to withhold and remit personal income tax in accordance with the provisions of the tax law.
II. Taxable objects and items of personal income tax
According to regulations, the taxable objects of personal income tax are personal income, and there are 11 specific tax items, namely, income from wages and salaries, income from production and operation of individual industrial and commercial households, income from contracted operation and lease operation of enterprises and institutions, income from remuneration for labor services, income from royalties, and income from interest, dividends and bonuses. Where an enterprise needs to withhold and pay personal income tax, it usually refers to income from wages and salaries, income from labor remuneration, income from royalties, income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income.
(I) Income from wages and salaries
Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment or employment of individuals in enterprises or other units. According to document No.89 [1994] of the State Administration of Taxation, the following subsidies and allowances that do not belong to the nature of wages and salaries, or the income that does not belong to the taxpayer's own wages and salaries, are not taxed:
1.
2. The implementation of the civil servant salary system does not include the subsidies of the total basic salary, the difference of subsidies and the non-staple food subsidies of family members;
3. Child care subsidy;
4. Travel allowance and meal-missed allowance (refers to the meal fee paid to employees by the unit in the name of meal-missed allowance according to the actual number of meals, if an individual can't work in the city or suburb due to work and really needs to eat out, as stipulated by the financial department).
the enterprise shall withhold and remit the personal income tax on the wages and salaries earned by employees from the enterprise according to the regulations.
(II) Income from remuneration for labor services
Income from remuneration for labor services refers to the design, decoration, installation, drawing, laboratory testing, testing, medical treatment, law, accounting, consulting, lecturing, news, broadcasting, peer review, painting and calligraphy, sculpture, film and television, recording, performance, performance, advertising, technical services, introduction services, etc. The income from directors' fees obtained by individuals as directors of enterprises also belongs to the nature of labor remuneration, and personal income tax is levied according to the items obtained from labor remuneration.
the basic criterion to distinguish the income from labor remuneration from wages and salary income is whether there is a relationship between employment and being employed. Income from labor remuneration is the remuneration obtained by an individual who independently engages in a certain skill and provides a certain service, and there is no relationship between him and the unit that pays the remuneration. The income from wages and salaries is an individual's non-independent labor, and he receives remuneration from the unit where he works. He has an employment and employment relationship with the unit that pays the remuneration.
the enterprise shall withhold and remit the personal income tax for the income from labor remuneration obtained by the individual from the enterprise.
(III) Income from royalties
Income from royalties refers to the income obtained by individuals from providing patents, trademarks, copyrights, non-patented technologies and other franchises.
for the income from royalties obtained by individuals from enterprises, the enterprises shall withhold and remit personal income tax according to regulations.
(4) Income from interest, dividends and bonuses
Income from interest, dividends and bonuses refers to the interest, dividends and bonuses obtained by individuals who own creditor's rights and equity. Interest refers to the interest earned by buying or holding various bonds. Dividends and bonuses refer to dividends obtained by individuals owning equity. Among them, every dividend paid according to a certain ratio is called dividend; According to the profit that should be distributed and exceeds the dividend, it is called dividend.
for the interest, dividends and bonus income obtained by individuals from the enterprise, the enterprise shall withhold and remit the personal income tax according to the regulations.
(V) Income from property leasing
Income from property leasing refers to the income obtained by individuals from renting buildings, land use rights, machinery and equipment, vehicles, boats and other properties.
the enterprise shall withhold and remit the personal income tax on the property rental income obtained by individuals from the enterprise.
(VI) Income from the transfer of property
Income from the transfer of property refers to the income obtained by individuals from the transfer of securities, shares, buildings, land use rights, machinery and equipment, vehicles, boats and other property.
for the income from property transfer obtained by individuals from enterprises, except for the income from stock transfer, enterprises should withhold and remit personal income tax according to regulations.
(VII) Accidental income
Accidental income refers to personal income from winning prizes, winning prizes, winning lottery and other accidental properties, including bonuses obtained by individuals participating in activities such as prize-winning sales organized by enterprises.
for incidental income obtained by individuals from enterprises, enterprises should withhold and remit personal income tax according to regulations.
(VIII) Income from contracted and leased operations of enterprises
Income from contracted and leased operations of enterprises refers to income from contracted and leased operations of individuals and income from subcontracting and subletting, including income in the nature of wages and salaries obtained by contractors and lessees from enterprises on a monthly or sub-monthly basis. In the specific tax calculation process, we should distinguish between two situations:
One is that after individual contracting and leasing, the industrial and commercial registration is changed to individual industrial and commercial households, while the income from contracting and leasing of enterprises actually belongs to the production and operation income of individual industrial and commercial households, so individual income tax should be levied instead of the income from contracting and leasing of enterprises.
the other is that after individual contracting and leasing, the industrial and commercial registration is still an enterprise, so the income obtained by the contractor or lessee from the enterprise according to the contracting and leasing contract (agreement) shall be subject to personal income tax according to the provisions of the individual income tax law, which can be divided into two types: one is that the contractor and lessee do not own the operating results of the enterprise, but only obtain certain income from the enterprise according to the provisions of the contract (agreement), and they shall be levied according to the items of wages and salaries. The other is that after the contractor and lessee pay the contract fee or lease fee to the enterprise according to the provisions of the contract (agreement), the operating results are owned by the contractor or lessee, and the income obtained from the enterprise should be withheld and remitted by the enterprise according to the items obtained from contracting and leasing the enterprise.
iii. withholding algebraic personal income tax by enterprises
according to the regulations, enterprises, as withholding agents, should withhold their due personal income tax when paying taxable income to individuals, whether in cash, remittance, transfer, securities, in kind or other ways, and whether the other party is an employee of the unit or not. An enterprise shall perform its duty of withholding and paying taxes according to law, and no individual may refuse. If an individual refuses to fulfill his tax obligations, the enterprise shall promptly report to the tax authorities for handling and suspend the payment of his taxable income. Otherwise, the tax payable by the individual shall be paid back by the enterprise, and at the same time, the overdue fine or penalty shall be paid for the tax that should be withheld and receivable. The tax payable shall be calculated according to the following formula:
taxable income = (paid income-expense deduction standard-quick deduction) ÷(1-tax rate)
taxable income = applicable tax rate-quick deduction
According to the regulations, when withholding personal income tax, enterprises must issue tax withholding and collection vouchers uniformly printed by tax authorities to individuals, and specify them in detail. For income from wages, salaries, interest, dividends and bonuses, if it is inconvenient to issue tax withholding certificates one by one due to a large number of taxpayers, with the consent of the competent tax authorities, tax withholding certificates may not be issued, but taxpayers should be informed that they have withheld taxes in a certain way. If a taxpayer asks the enterprise for the tax withholding and collection certificate for holding the tax payment certificate, the enterprise shall not refuse. Where an enterprise provides an informal tax deduction certificate to a taxpayer, the taxpayer has the right to refuse it.
the monthly tax withheld and the monthly tax payable by taxpayers who declare themselves shall be turned over to the state treasury within 7 days of the following month, and the tax return shall be submitted to the local competent tax authorities.
IV. Tax Reduction and Exemption Policy
According to the current regulations, when an enterprise withholds personal income tax, the following items are exempted from personal income tax:
1. Special government allowance issued in accordance with the regulations of the State Council (referring to a special allowance issued by the state to personnel who have made outstanding contributions to the development of various undertakings, not referring to other subsidies and allowances approved by the State Council) and subsidies and allowances exempted from tax in the State Council (currently limited to the allowances of academicians of China Academy of Sciences and Academy of Engineering)
2. Welfare expenses, that is, the temporary living difficulties subsidies paid to employees from the welfare expenses or trade union funds retained by enterprises according to relevant state regulations due to certain specific events or reasons, are exempt from personal income tax. The following income does not belong to the scope of tax-free welfare expenses, and should be incorporated into the income from wages and salaries for personal income tax:
(1) various subsidies and subsidies paid to individuals from welfare expenses and trade union funds accrued beyond the proportion or base set by the state;
(2) Subsidies paid to employees from welfare funds and trade union funds;
(3) The expenses that the unit buys cars, houses, computers, etc. for individuals are not subsidies for temporary sexual difficulties.
3. The settling-in allowance, resignation fee (referring to the resignation fee that individuals meet the conditions stipulated in the Interim Measures of the State Council on Retirement and Resignation of Workers and receive according to the standards stipulated in these Measures) and retirement fee paid to employees in accordance with the unified national regulations are exempt from taxation.
4. The housing accumulation fund, medical insurance premium and basic old-age insurance premium drawn by the enterprise according to the proportion stipulated by the state or local government and actually paid to the designated financial institution are not included in the personal current salary and salary income, and are exempt from personal income tax. Housing provident fund, medical insurance premium and basic old-age insurance premium paid in excess of the proportion stipulated by the state or local government shall be incorporated into personal current wages and salary income, and personal income tax shall be levied. Individuals shall be exempted from personal income tax when receiving the original housing provident fund, medical insurance premium and basic old-age insurance premium.
5. According to the documentNo. [1997]87 issued by the State Administration of Taxation, the income from young crops compensation paid by the land requisition unit to the land contractor is temporarily exempted from personal income tax.
according to document caishuizi [1998] No.61, personal income tax is temporarily exempted for the income obtained by individuals from transferring shares of listed companies.
in addition, in accordance with the provisions of document No.2 (94) Caishuizi, senior experts (experts and scholars who enjoy special government allowances issued by the state) who have reached the retirement age, but have appropriately extended their retirement age due to work needs, their wages and salary income during the extended retirement period shall be regarded as retirement wages and retired wages shall be exempted from personal income tax.
According to the Individual Income Tax Law and the Regulations for the Implementation of the Individual Income Tax Law, individual income tax can be reduced for the following items upon approval, and the scope and duration of the reduction shall be determined by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government:
1. Income of disabled, widowed and martyrs;
2. Heavy losses caused by natural disasters;
3. Other exemptions and reductions approved by the financial department of the State Council.
Document No.329 of Guoshuihan [1999] further clarifies that the above-mentioned disabled, widowed and martyr's family members whose personal income tax can be reduced with the approval of the provincial people's government are limited to labor income, and the specific income items are: wages and salaries; Income from the production and operation of individual industrial and commercial households; Income from contracted operation and leased operation of enterprises and institutions; Income from labor remuneration; Income from remuneration; Income from royalties. Personal income tax cannot be reduced for other income.
according to (94) Cai shui zi No.2, Guo shui Han Fa [1996] No.417, Guo shui Fa [1997] No.54 and other documents, the following incomes of overseas personnel are temporarily exempted from personal income tax.
(1) Reasonable housing subsidies, food subsidies, relocation expenses and laundry expenses obtained by foreign individuals in the form of non-cash or reimbursement are temporarily exempt from personal income tax. For housing subsidies, food subsidies and laundry expenses, taxpayers should provide the competent tax authorities with valid certificates of the above subsidies when they file tax returns for wages and salaries in the next month of the month when they first obtain the above subsidies or the amount and payment method of the above subsidies change, and the competent tax authorities will approve and confirm the tax exemption. For relocation expenses, the taxpayer shall provide valid vouchers, which shall be examined and confirmed by the competent tax authorities, and the reasonable part thereof shall be exempted from tax.
(2) The domestic and overseas travel subsidies obtained by foreign individuals according to reasonable standards are temporarily exempt from personal income tax. For such subsidies, the taxpayer shall provide the travel expenses and accommodation vouchers (photocopies) or the relevant plans for enterprises to arrange business trips, and the competent tax authorities shall confirm the tax exemption.
(3) The expenses for visiting relatives, language training, children's education, etc. obtained by foreign individuals, which are reasonable after examination and approval by the local tax authorities, are temporarily exempted from personal income tax. For the expenses for visiting relatives, the taxpayer shall provide the transportation expenses voucher (copy) for visiting relatives, which shall be audited by the competent tax authorities, and the part actually used for visiting relatives by himself, and the number of visits to relatives every year and the reasonable standard of payment shall be exempted. As for the language training fees and children's education fees, taxpayers should provide expenditure vouchers and time limit proof materials for receiving the above-mentioned education in China, which will be audited by the competent tax authorities, and the language training fees and children's education fees obtained from their language training in China and their children's education in China will be subsidized, and the part within a reasonable amount will be exempted from tax.
calculation of taxable amount of personal income tax in section 2
1. tax basis of personal income tax
the tax basis of personal income tax is taxable income. Taxable income is the balance of income obtained by individuals after deducting the deduction items or amounts stipulated in the tax law.
generally, personal income is cash income. If the income obtained by an individual is in kind, the taxable income shall be calculated according to the price indicated on the certificate of the obtained kind; If there is no voucher or the price indicated on the voucher is obviously low, the taxable income shall be determined by the competent tax authorities with reference to the local market price. If the personal income is securities, it shall be rooted by the competent tax authorities.