Bonuses issued by the company are also subject to personal income tax. General bonus is also an integral part of total wages, which should be included in personal wages and salary income and taxed at an excessive progressive tax rate of 3% to 45%.
Legal objectivity:
Article 2 of the Individual Income Tax Law of People's Republic of China (PRC) shall be subject to individual income tax: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from remuneration; (4) Income from royalties; (5) Operating income; (9) Accidental income. Article 3 of the Individual Income Tax Law of People's Republic of China (PRC): (1) For comprehensive income, the excess progressive tax rate of 3% to 45% shall apply; (2) The excess progressive tax rate of 5% to 35% shall apply to the operating income; (3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%. Calculation of taxable income in Article 6 of the Individual Income Tax Law of People's Republic of China (PRC): (1) The comprehensive income of individual residents, after deducting expenses of 60,000 yuan from the income in each tax year, plus the balance after special additional deductions and other deductions determined according to law, is taxable income.