1. Income from wages and salaries
1. Items subject to tax:
In addition to wages and salaries, bonuses, year-end salary increases, labor dividends, Allowances and subsidies are also subject to personal income tax based on wages and salaries.
2. Items that are not taxable or tax-free
One-child subsidy; subsidies that are not included in the total basic salary under the civil servant salary system, allowance differences and non-staple food subsidies for family members; daycare Child allowance; travel allowance, missed meal allowance.
3. Special provisions
(1) The wages and salaries received from the original employer by an individual who undergoes internal retirement between the time he completes the internal retirement procedures and the legal retirement age , personal income tax is levied based on "wage and salary income". The one-time income received from the original unit after the formalities of internal withdrawal should be averaged over the months between the completion of the internal withdrawal procedures and the statutory retirement age, and combined with the "wage and salary" income of the current month, minus the monthly expense deduction standard. , use the balance as the base to determine the applicable tax rate, then add the current month's wages and salaries to the one-time income obtained, minus the expense deduction standard, and calculate the personal income tax according to the applicable tax rate; re-employ after completing the internal refund procedures to the legal retirement age The "wages and salaries" income obtained should be combined with the "wages and salaries" income obtained from the original unit in the same month, and personal income tax should be declared to the competent tax authorities in accordance with the law.
(2) The income earned by retirees from re-employment shall be subject to personal income tax according to the taxable items of "wage and salary income" after deducting the deduction standards stipulated in the tax law.
(3) Labor dividends obtained by company employees for purchasing state-owned equity are subject to personal income tax on the basis of "wages and salaries".
(4) For bicycle contracting or leasing operations, the income earned by taxi drivers engaged in passenger and cargo operations is subject to personal income tax based on "wage and salary".
(5) Enterprises and units organize travel activities in the name of training courses, seminars, work inspections, etc. for employees with outstanding marketing performance, and provide individual marketing performance rewards (including physical objects, securities, etc.), the full amount shall be incorporated into the current wages and salaries of marketing personnel, and personal income tax shall be calculated and levied according to "wages and salaries".
2. Income from production and business operations of individual industrial and commercial households
Includes:
1. Individual industrial and commercial households engaged in industry, handicrafts, construction, transportation, Income from production and operations in commerce, catering, service, repair and other industries.
2. Income obtained by individuals who have obtained licenses with approval from relevant government departments and engaged in running schools, medical care, consulting and other paid service activities.
3. Various taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.
4. Income obtained by other individuals from individual industrial and commercial production and operations.
Special regulations:
1. Individual industrial and commercial households engaged in planting and other projects that have already collected agricultural tax and animal husbandry tax will no longer be levied personal income tax. If the income does not fall within the scope of agricultural tax or animal husbandry tax, personal income tax shall be levied on the income combined with the income from production and operations in other industries.
2. The income obtained by taxi drivers engaged in individual taxi operations shall be subject to personal income tax according to the production and operation income of individual industrial and commercial households; Personal income tax is levied on "production and operating income" items.
3. If the taxi is owned by an individual but management fees are paid to the affiliated unit or the taxi operating unit transfers the ownership of the taxi to the driver, the income earned by the taxi driver from engaging in passenger and cargo operations shall be compared with Individual industrial and commercial households are taxed on their production and business income items.
4. Individual industrial and commercial households and individuals engaged in production and business operations shall calculate and levy personal income tax in accordance with relevant regulations on other taxable incomes unrelated to production and business activities. If you obtain interest income from bank deposits or dividend income from external investments, personal income tax shall be separately calculated and levied according to the provisions of the "interest, dividend, and bonus income" items.
3. Income from contracting and leasing operations of enterprises and institutions
1. After an individual contracts or leases operations to enterprises and institutions, if the industrial and commercial registration is changed to an individual industrial and commercial household, the following conditions shall apply: Individual industrial and commercial households are levied personal income tax on their production and business income items.
2. After an individual contracts or leases operations to an enterprise or institution, if the industrial and commercial registration is still an enterprise, regardless of the distribution method, the enterprise income tax must first be paid in accordance with the relevant provisions of enterprise income tax. Then pay personal income tax according to relevant regulations.
IV. Income from labor remuneration
An important criterion for distinguishing income from labor remuneration from wages and salaries: whether there is an employment-employee relationship.
Special provisions:
1. The director fee income obtained by an individual from serving as a director can be divided into two situations: the situation when an individual serves as a director or supervisor of a company and does not hold any office or employment in the company. , belongs to the nature of labor remuneration, and is taxed according to the items of labor remuneration income; if an individual holds a position or is employed by a company (including affiliated companies) and concurrently serves as a director or supervisor, the director's fee and supervisor's fee should be combined with the personal salary income and uniformly calculated as salary. , Salary income items are subject to personal income tax;
2. School students who obtain taxable income items due to work-study activities should pay personal income tax in accordance with the law;
3. Enterprises and units For non-employees with outstanding marketing performance, travel activities are organized in the name of training courses, seminars, work inspections, etc., and marketing performance rewards (including physical objects, securities, etc.) implemented for individuals by waiving travel expenses and tourism expenses shall be based on the events that have occurred. The full amount of the fee is regarded as the marketer's labor income for the current period and is taxed according to the labor remuneration income item.
5. Income from author remuneration
refers to the income an individual obtains from the publication or publication of his works in the form of books, newspapers and periodicals. The works mentioned here include literary works, calligraphy and painting works, photographic works, and other works. After the author's death, personal income tax shall also be levied on the remuneration for the posthumous works obtained by the property heirs.
Special regulations:
1. Journalists, editors and other professionals who work or are employed by newspapers, periodicals and other units shall have income from publishing works in their units’ newspapers, periodicals and magazines. The salary income of the current month shall be combined and taxed according to the salary item; the income obtained by other personnel from publishing works in newspapers and magazines of the unit shall be levied with personal income tax according to the remuneration item.
2. Personal income tax will be levied on the royalties earned from publishing the works of professional authors in the form of books by the publishing house according to the royalties items.
6. Income from royalties
Refers to the income obtained by individuals from providing the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises. Franchise rights mainly include the following four rights: patent rights, trademark rights, copyrights, and non-patented technologies.
The income obtained from providing the right to use the copyright does not include the 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 is the income from the use of the copyright. Therefore, personal income tax should be levied on royalties.
Individuals’ economic compensation income from obtaining concessions shall pay personal income tax according to the taxable item of “royalty income”, and the tax shall be withheld and paid by the unit or individual who pays the compensation.
Starting from May 1, 2002, the script royalties obtained by screenwriters from TV drama production units, regardless of whether the user of the script is the unit where they work, will be uniformly levied on personal income tax based on the royalty income items. .
7. Interest, dividends and bonus income
Refers to the interest, dividend and bonus income obtained by individuals from owning debts and equity. The relevant regulations are as follows:
1. Individual accounts opened from banks and other savings institutions for payment of telephone, water, electricity, gas and other related expenses, or for investment, production and operation business transactions such as the purchase of stocks. Interest income obtained from settlement and other purposes shall be subject to personal income tax in accordance with the law, and the tax shall be withheld and paid by the savings institution that pays the interest.
2. Quantitative assets acquired by individuals:
Quantitative assets of enterprises that are acquired by individual employees in the form of shares only as a basis for dividends and without ownership are not subject to personal income tax; personal income tax is not levied on individual employees. Dividends and bonuses obtained from corporate quantified assets acquired in the form of shares and participating in corporate distribution are subject to personal income tax according to the "interest, dividends and bonuses" items.
8. Property leasing income
Refers to the income obtained by individuals from leasing buildings, land use rights, machinery and equipment, vehicles and ships, and other properties.
The income from property sublease obtained by individuals falls within the tax scope of "property lease income".
The real estate development enterprise signs an agreement with the individual store buyer to sell the store it develops to the individual buyer at a preferential price. The individual buyer must provide the purchased store to the real estate enterprise for free within a certain period of time for leasing. use. The purchase price that the buyer personally pays less is taxed as “property rental income”.
9. Income from property transfer
Refers to the income obtained by individuals from the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and ships, and other properties. The relevant specific regulations are as follows:
1. Personal income tax is temporarily not levied on income from stock transfers.
2. Quantitative asset share transfer: When a collectively owned enterprise is restructured into a joint-stock cooperative enterprise, personal income tax will be suspended for the quantified assets of the enterprise with ownership acquired by individual employees in the form of shares; until the individual transfers the shares At the time of transfer, the balance of the transfer income after deducting the actual expenses paid by the individual when acquiring the shares and reasonable transfer fees will be levied as personal income tax under the item "Income from Property Transfer".
3. Individuals selling their own houses:
(1) The income obtained by individuals from selling their own houses should be levied personal income tax according to the item "Income from Property Transfer".
(2) When an individual sells a purchased public house, the taxable income is the sales price of the purchased public house, minus the affordable housing price of the housing area standard and the original payment exceeding the housing area standard. The balance after the house price, income paid to the finance or original property rights unit, and reasonable expenses stipulated in tax laws.
(3) The amount of taxable income from jointly built houses, housing project housing, affordable housing and demolition resettlement housing invested by employees at cost price (or standard price) shall be determined based on the purchased public housing.
(4) In order to encourage individuals to exchange their homes, for taxpayers who sell their own homes and plan to repurchase their homes at the market price within one year after the sale of their current homes, the personal income tax payable on the sale of their current homes shall be: It is paid first in the form of a tax deposit, and later it can be fully or partially tax-free depending on the value of the new home. If an individual does not purchase a new home within one year after selling his current home, all the tax deposit paid will be paid to the state treasury as personal income tax.
(5) Income derived from the transfer of a house that has been used by an individual for more than five years and is the only living room of the family will continue to be exempt from personal income tax.
(6) If an individual currently owns a house with one registered property owner, and within one year after the sale, the property owner repurchases the house at the market price in the name of the property owner’s spouse or in the name of both property owners and husband and wife, the property owner shall The personal income tax payable on the income from the sale of a house is fully or partially exempt; if the house is repurchased in the name of another person at the market price, the personal income tax payable on the property owner's income from the sale of the house is not exempt.
10. Incidental income
Refers to an individual’s income from winning a prize, winning a prize, winning a lottery, and other incidental income.
Income from gifts obtained by individuals from participating in corporate sales activities with prizes shall be levied personal income tax as "accidental income".
11. Other income
According to the regulations of the Ministry of Finance and the State Administration of Taxation, savings bonuses paid to depositors that exceed the national interest rate are taxed as "other income".