Personal income tax includes the following aspects:
1. Income from wages and salaries
Income from wages and salaries refers to income earned by individuals due to their employment or employment. Wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies and other income related to office or employment.
This means that any income obtained by an individual, as long as it is related to his or her position or employment, regardless of the source of capital expenditure of the unit or paid in the form of cash, kind, securities, etc., is salary, wages, etc. Salary income items are taxable.
2. Income from labor remuneration
Income from labor remuneration refers to individuals engaged in design, decoration, installation, drawing, laboratory testing, medical treatment, law, accounting, consulting, lecturing, and news , broadcasting, translation, review, calligraphy and painting, engraving, film and television, audio and video recording, performances, performances, advertising, exhibitions, technical services, introduction services, economic services, agency services and other services.
3. Income from royalties
Income from royalties refers to the income an individual obtains from the publication or publication of his works in the form of books or newspapers. The "works" mentioned here refer to works including Chinese and foreign texts, pictures, music scores, etc. that can be published and published in the form of books, newspapers and periodicals; "personal works" include my own writings, translated works, etc. If an individual receives remuneration for a posthumous work, tax shall be calculated based on the income item of the remuneration.
IV. Income from royalties
Income from royalties refers to the right to use patents, copyrights, trademarks, non-patented technologies and other franchises obtained by individuals. of income. Income from providing the right to use a copyright does not include income from royalties. The income obtained by the author from the public auction (bidding) of the original or copy of the manuscript of his written work shall be taxed as a royalty income item.
5. Business income
Includes income from production and business operations of individual industrial and commercial households and income from contracting and leasing operations of enterprises and institutions.
Income from production and business operations of individual industrial and commercial households includes four aspects:
(1) Urban and rural individual industrial and commercial households that have been approved by the industrial and commercial administration department to open business and obtain a business license are engaged in industry, Income from production and operations in handicrafts, construction, transportation, commerce, catering, service, repair and other industries.
(2) Income obtained by individuals who have obtained business licenses with approval from relevant government departments and engaged in running schools, medical treatment, consulting and other paid service activities.
(3) Income obtained by other individuals from engaging in individual industrial and commercial production and operations, that is, income obtained by individuals temporarily engaging in production and operation activities.
(4) Various taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.
Income from contracted operations and leasing operations of enterprises and institutions refers to the income obtained from individual contracted operations, leasing operations, subcontracting, and subletting, including wages and salaries obtained by individuals on a monthly or per-time basis. of income.
6. Interest, dividends, and bonus income
Interest, dividends, and bonus income refer to the interest, dividend, and bonus income obtained by individuals from owning debts and equity. Interest refers to personal deposit interest (the state announced that the interest tax will be abolished from the next day on October 8, 2008), interest on goods loans and interest on the purchase of various bonds.
Dividends, also known as dividends, refer to the investment benefits that stock holders receive from a joint-stock company on a regular basis based on their stocks according to the articles of association of the joint-stock company.
Dividends, also known as company (enterprise) dividends, refer to the portion of profits that a joint-stock company or enterprise distributes on a per-share basis in excess of dividends based on the profits that should be distributed. When a joint-stock enterprise pays dividends to individual shareholders in the form of stocks, or dividends, that is, bonus shares, the income tax shall be calculated based on the face value of the stocks distributed.
7. Income from property leasing
Income from property leasing refers to the income obtained by individuals from leasing buildings, land use rights, machinery, equipment, vehicles, and other properties. Property includes movable and immovable property.
8. Income from property transfer
Income from property transfer refers to the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and ships and other self-owned property by individuals to Income obtained from another person or entity, including income obtained from the transfer of real estate and movable property. There is no tax for the time being on income derived from individual stock trading.
9. Accidental income
Accidental income refers to the income obtained by an individual that is non-recurring and belongs to various opportunities, including winning prizes, winning prizes, winning lottery and other accidental incomes. Income of a nature (including bonuses, in kind and securities).
If an individual purchases social welfare prize-winning donation tickets or China sports lottery, and the one-time winning income does not exceed 10,000 yuan, personal income tax is exempted; if the income exceeds 10,000 yuan, the full amount shall be calculated as incidental income items ( The tax rate as of April 21, 2011 is 20).
10. Other income
Extended information:
1. Personal income tax algorithm:
Article 6 of the New Personal Income Tax Law 1 Item 1 of this paragraph stipulates that the comprehensive income of a resident individual shall be the taxable income after deducting RMB 60,000 in expenses, special deductions, special additional deductions and other deductions determined in accordance with the law from the income in each tax year.
That is, the calculation formula is: taxable income = monthly income - 5,000 yuan (threshold) - special deductions (three insurances, one housing fund, etc.) - special additional deductions - other deductions determined in accordance with the law.
2. Relevant modifications to the content of personal income tax in 2018:
Gradually establish a personal income tax system that combines comprehensive and classified personal income tax. The new law combines labor income such as wages and salaries, income from remuneration for services, author’s remuneration, and royalties into “comprehensive income” and is subject to a unified excess progressive tax rate, while other incomes are still subject to classified taxation.
The new law takes into account factors such as the per capita basic consumption expenditure of urban residents, the consumer price index and other factors, and raises the basic expense deduction standard for comprehensive income to 60,000 yuan per year, which reduces the tax burden on low- and middle-income groups and can enhance tax payment. People gain a sense of gain. At the same time, the tax rate structure of comprehensive income will be optimized and adjusted, the gap between the three low tax brackets of 3, 10, and 20 will be expanded, and the gap between the 25 tax bracket will be narrowed.
The new law implements the people-centered development philosophy and focuses on protecting the basic human rights of taxpayers. While stipulating the original special deduction items such as basic personal pension insurance, basic medical insurance, unemployment insurance, and housing provident fund, it also stipulates special deduction items for children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, and expenses for supporting the elderly. Additional deductions.
The establishment of special additional deductions will not only help further reduce taxpayers’ tax burdens, but also take into account differences in individual burdens, demonstrating the new law’s implementation of the principle of fairness. This approach is conducive to promoting a more balanced and adequate 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 other tax laws.
Baidu Encyclopedia—Personal Income Tax
Reference Source: People’s Daily Online—Personal Income Tax Reform Takes a Solid Step (Handwritten by Everyone)