Article 1. Individual income tax shall be paid in accordance with the provisions of this Law by individuals who have resided for one year or Individuals not residing in the People’s Republic of China and individuals who have resided in China for less than one year shall Article 2. Individual income tax shall be paid on the following categories of income: (1) income from wages and salaries; (2) income from remuneration for personal services; (3) income from royalties; (4) income from interest, dividends and bonuses; (5) income from the lease of property; and (6) other income specified as taxable by the Ministry of Finance of the People’s Republic of China. Article 3. Individual income tax rates: (1) Income from wages and salaries in excess of specified amounts shall be taxed at progressive rates ranging from 5 percent to 45 (2) Income from remuneration for personal services, royalties, interest, dividends, bonuses and the lease of property and other income Article 4. The following categories of income shall be exempted from individual income tax: (1) awards for scientific, technological and cultural achievements; (2) interest on savings deposits in the state banks and credit cooperatives of the People’s Republic of China; (3) welfare benefits, survivors pensions and relief payments; (4) insurance indemnities; (5) military severance pay and demobilization pay for officers and soldiers of the armed forces; (6) severance pay and retirement pay for cadres, staff members and workers; (7) salaries of diplomatic officials of foreign embassies and consulates in China; (8) income exempted from tax as stipulated in the international conventions to which the Chinese Government is a party and in agreements (9) income exempted from tax with the approval of the Ministry of Finance of the People’s Republic of China. Article 5. The amount of various kinds of taxable income shall be computed as follows: (1) For income from wages and salaries, a monthly deduction of 800 yuan shall be allowed for expenses, and that part in excess of (2) For income from remuneration for personal services, royalties and the lease of property, a deduction of 800 yuan shall be allowed (3) Income from interest, dividends, bonuses and other income shall be taxed on the amount received in each payment. Article 6. For individual income tax, the income earner shall be the taxpayer, and the paying unit shall be the withholding agent. In case Article 7. The tax withheld each month by a withholding agent and the tax to be paid each month by a taxpayer personally filing a return shall A taxpayer who earns income outside China shall pay the tax due to the State Treasury and submit a tax return to the tax authorities Article 8. All categories of income shall be computed in terms of Renminbi (RMB). Income in foreign currency shall be taxed on the equivalent Article 9. The tax authorities shall have the right to inspect the payment of tax. Withholding agents and taxpayers personally filing tax Article 10. A service fee of one percent of the amount of tax withheld shall be paid to the withholding agents. Article 11. Withholding agents and taxpayers personally filing returns must pay tax within the prescribed time limit. In case of failure to Article 12. The tax authorities may, in the light of the circumstances, impose a fine on a withholding agent or a taxpayer personally filing In dealing with those who have concealed income or evaded or refused to pay tax, the tax authorities may, in addition to pursuing Article 13. In case of a dispute with the tax authorities over tax payment, a withholding agent or a taxpayer personally filing a return must Article 14. Rules for the implementation of this Law shall be formulated by the Ministry of Finance of the People’s Republic of China. Article 15. This Law shall go into effect on the day of its promulgation.
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