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Circular of the State Administration of Taxation concerning Printing and Distributing the Measures for the Self-declaration of Individual
Income Tax (for Trial Implementation)
Guo Shui Fa [2006] No.162
The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government and cities specifically designated in the state plan:
For the purpose of reinforcing the administration of individual income tax collection, improving the system of self-declaration of
individual income tax, and maintaining the lawful rights and interests of taxpayers, the State Administration of Taxation formulated
the Measures for the Self-declaration of Individual Income Tax (for Trial Implementation) in accordance with the Individual Income
Tax Law of the People’s Republic of China and the detailed rules for implementation thereof, the Law of the People’s Republic of
China Concerning the Administration of Tax Collection and the detailed rules for implementation thereof, as well as other related
tax provisions, . The Measures are hereby printed and distributed to you. Please abide hereby earnestly.
Appendix: Specimen of Individual Income Tax Return
The State Administration of Taxation
November 6, 2006
Appendix:
Measures for the Self-declaration of Individual Income Tax (for Trial Implementation)
Chapter I General Provisions
Article 1
For the purpose of further reinforcing the collection administration of individual income tax, safeguarding tax revenues of the State,
maintaining the legitimate rights and interests of taxpayers, facilitating and regulating the self-declaration of taxpayers, the
present Measures are formulated in accordance with the Individual Income Tax Law of the People’s Republic of China (hereinafter referred
to as the Individual Income Tax Law) and the detailed rules for implementation thereof, Law of the People’s Republic of China Concerning
the Administration of Tax Collection (hereinafter referred to as the Law Concerning the Administration of Tax Collection) and the
detailed rules for implementation thereof, as well as other related laws and regulations..
Article 2
Where a taxpayer obligatory to pay tax under the Individual Income Tax Law and is under any of the following circumstances, he/she
shall make his/her tax declaration in accordance with the present Measures:
(1)
Acquiring an annual income of 120,000 Yuan or more;
(2)
Acquiring wages and salaries from two or more sources within the territory of China;
(3)
Acquiring incomes from abroad;
(4)
Acquiring taxable incomes for which there is no corresponding withholding agent;
(5)
Any other circumstance as stipulated by the State Council.
Article 3
Any taxpayer who acquires an annual income of 120,000 Yuan or more as prescribed in Item (1) of Article 2 of the present Measures
shall, whether the individual income tax has been paid in full amount for all items of his income, make tax declaration to the taxation
authorities in accordance with the present Measures after a tax year ends.
Any taxpayer who is under any of the circumstances as prescribed in Items (2) to (4) of Article 2 of the present Measures shall,
in accordance with the present Measures, make tax declaration to the taxation authorities after receiving the income.
The measures for those taxpayers who are under the circumstances as prescribed in Item (5) of Article 2 of the present Measures to
make tax declarations shall be separately stipulated in accordance with specific circumstances.
Article 4
The ” taxpayer who acquires an annual income of 120,000 Yuan or more” as stipulated in Item (1) of Article 2 of the present Measures
may not involve those individuals who have no residence within the territory of China and have resided within the territory of China
for less than one year in a tax year.
The “taxpayer who obtains incomes from abroad” as stipulated in Subparagraph (3) of Article 2 of the present Measures means those
individuals who have residence within the territory of China or have resided within the territory of China for one full year in a
tax year.
Chapter II Contents for Declaration
Article 5
After a tax year ends, a taxpayer who obtains an annual income of 120,000 Yuan or more shall fill in an Individual Income Tax Return
(For the taxpayer who obtains an annual income of 120,000 Yuan or more) (see the attached Form 1), and submit it to the taxation
authorities when making tax declaration, and submit the photocopy of his/her effective identification certificate as well as other
related materials required to be submitted by the taxation authorities at the same time .
The “effective identification certificate” includes the taxpayer’s identification card, passport, home visit permit, military staff
certificate and so on .
Article 6
The “annual income of 120,000 Yuan or more” as stipulated in the present Measures means the total amount of the following items of
income obtained by a taxpayer in a tax year reaching 120,000 Yuan:
(1)
Wages and salaries;
(2)
Income of production or business operation obtained by self-employed industrial and commercial households ;
(3)
Income from contractual or leased operation of enterprises and institutions;
(4)
Remunerations for providing services;
(5)
Author’s remunerations;
(6)
Franchise royalties ;
(7)
Interests, dividends and capital bonuses;
(8)
Income from leasing property;
(9)
Income from transferring property;
(10)
Contingent income; and
(11)
Other taxable income determined by the public finance department of the State Council.
Article 7
The “income” as stipulated in Article 6 of the present Measures does not include the following kinds of income:
(1)
Tax-exempt income mentioned in Subparagraphs (1) to (9) of Article 4 of the Individual Income Tax Law, namely,
(a)
awards forachievementsinscience, education,technology, culture, public health, physicalcultureandenvironmentalprotection
granted by provincial people’s governments, ministries and commissions under the State Council , the People’s Liberation Army units
at army level and above and by foreign or international organizations;
(b)
interests accruing from national bonds and other financial debentures issued by the state;
(c)
subsidies and allowances receivedunderthestateuniform provisions namely, special government allowances, allowances for academicians,
allowances for senior academicians that are granted in accordance with the provisions stipulated by the State Council as stipulated
in Article 13 of the Regulation concerning the Implementation of the Individual Income Tax Law, and other kinds of subsidies and
allowances that are exempt from individual income tax as stipulated by the State Council;
(d)
welfare benefits, pensions for the disabled or for the family of the deceased and relief funds ;
(e)
insurance compensation;
(f)
military severance pay and demobilization pay;
(g)
settling-in allowances, severance pay, retirement wages, retirement wages for veteran cadres, and living subsistence allowances for
retired veteran cadres distributed to cadres and employees underthestateuniform provisions;
(h)
incomes of diplomatic representatives, consular staff and other personnel of foreign embassies and consulates in China, which shall
be exempt from tax in accordance with the provisions of related laws of China; and
(i)
incomes which shall be exempt from tax under the international conventions in which the Chinese Government joins or agreements which
the Chinese Government has signed.
(2)
Incomes obtained from abroad which can be exempt from tax as stipulated in Article 6 of the Regulation concerning the Implementation
of the Individual Income Tax Law; and
(3)
Basic endowment insurance premiums, basic medical insurance premiums, unemployment insurance premiums and public accumulation fund
for housing construction paid by entities for their staff and individuals in accordance with the provisions of the State as stipulated
in Article 25 of the Regulation concerning the Implementation of the Individual Income Tax Law.
Article 8
The annual amount of all items of income as stipulated in Article 6 of the present Measures shall be calculated in accordance with
the following methods:
(1)
The incomes obtained from wages and salaries shall be calculated in light of the income prior to the expenses deduction (1,600 Yuan
per month) and additional expenses deduction (3,200 Yuan per month);
(2)
The incomes from production and business operations obtained by self-employed industrial and commercial households shall be calculated
in light of the taxable incomes. If the tax is collected by checking accounts, the corresponding incomes shall be calculated in light
of the total amount of incomes with the cost, expenses and losses deducted for each tax year; and if the tax is collected at a fixed
time and at a fixed amount, the corresponding incomes shall be calculated in light of the annual taxable incomes declared by the
taxpayer himself/herself or the annual taxable business amount declared by the taxpayer himself/herself multiplied by the rate of
taxable incomes;
(3)
The income from contractual or leased operation of enterprises and institutions shall be calculated in light of the total amount of
income for each tax year, namely, the operation profits actually obtained by the contractor or lessee plus his/her income with the
nature of wage and salary obtained from the enterprises and institutions he/she contracted or leased;
(4)
The remunerations for providing services or author’s remunerations or franchise royalties shall be calculated in light of the income
prior to the expenses deduction(800 Yuan or 20% of incomes each time);
(5)
The income obtained from leasing property shall be calculated in light of the amount of income prior to the expenses deduction (800
Yuan or 20% of incomes each time) and repairing charges;
(6)
The incomes obtained from transferring property shall be calculated in light of the amount of taxable incomes, namely, the balance
of the amount of income from transferring property deducting the original value of property and tax and related reasonable expenses
paid in the course of transferring property; and
(7)
The income obtained from interests, dividends and capital bonuses, contingent income or other incomes shall be calculated in light
of the total amount of income.
Article 9
A taxpayer who obtains incomes under any of the circumstances as stipulated in Subparagraph2to4 of Article 2 of the present
Measures shall fill in and submit the corresponding tax return (see Appendixes 2 C 9) to the taxation authorities , and submit other
related materials required to be submitted by the taxation authorities at the same time.
Chapter III Place for Declaration
Article 10
The places for a taxpayer who obtains an annual income of 120,000 Yuan or more to make tax declaration shall be at follows respectively:
(1)
Where the taxpayer work for an employer within the territory of China, he/she shall make tax declaration to the taxation authorities
at the locality of his/her employer;
(2)
Where the taxpayer work for two or more employers within the territory of China, he/she shall select and fix the taxation authorities
at the locality of one employer to make tax declaration;
(3)
Where the taxpayer is not employed for any employer within the territory of China but there is income of production or business operations
obtained by self-employed industrial and commercial households or income from contractual or leased operation of enterprises and
institutions (hereinafter referred to uniformly as income from production or business operations) in the items of annual incomes,
the taxpayer shall make tax declaration to the taxation authorities at the locality of the actual business place of one source; and
(4)
Where the taxpayer is not employed for any employer within the territory of China and there is no income from production or business
operations in the items of his/her annual income, the taxpayer shall make tax declaration to the taxation authorities at the locality
of his/her registered permanent residence. Where the taxpayer’s registered permanent residence is within the territory of China but
different from his/her habitual residence within the territory of China, the taxpayer shall select and fix the taxation authorities
at the locality of either to make tax declaration. Where the taxpayer has no registered permanent residence within the territory
of China, tax declaration shall be made to the taxation authorities at the locality of habitual residence within the territory of
China.
Article 11
A taxpayer who obtains incomes under the circumstances as stipulated in Subparagraphs (2) through (4) of Article 2 of the present
Measures shall make tax declaration respectively at the following places:
(1)
Where the taxpayer obtains wages and salaries from two or more sources, he/she shall select and fix the taxation authorities at the
locality of one employer to make tax declaration;
(2)
Where the taxpayer obtains income from abroad, he/she shall make tax declaration to the taxation authorities at the locality of his/her
registered permanent residence within the territory of China. Where the taxpayer’s registered permanent residence is within the territory
of China but different from his/her habitual residence within the territory of China, the taxpayer shall select and fix the taxation
authorities at the locality of either to make tax declaration. Where the taxpayer has no registered permanent residence within the
territory of China, tax declaration shall be made to the taxation authorities at the locality of his/her habitual residence within
the territory of China;
(3)
A self-employed industrial and commercial household shall make tax declaration to the taxation authorities at the locality of the
actual business place;
(4)
Where an investor of sole proprietorship enterprises or enterprises in partnerships has established two or more enterprises, the places
for tax declaration shall be determined on the basis of the following different circumstances:
(a)
Where all the enterprises are sole proprietorship enterprises, tax declaration shall be made respectively to the taxation authorities
at the locality of actual business place of each enterprise;
(b)
Where any established enterprise belongs to partnerships, tax declaration shall be made to the taxation authorities at the locality
of /her habitual residence; and
(c)
Where any established enterprise belongs to partnerships and the place of habitual residence of the individual investor is different
from the business management place of the established enterprises, the investor shall select and fix the taxation authorities of
the business management place of any partnership he/she has participated in the establishment thereof to make tax declarations.
(5)
Except for the above circumstances, tax declaration shall be made to the taxation authorities at the place where the taxpayer obtains
income.
Article 12
A taxpayer may not change the place for tax declaration at his/her own choice, and if the place for tax declaration needs to be changed
by virtue of any special reason, he/she shall report it to the former taxation authorities for archival filing.
Article 13
The place for tax declaration as stipulated in Item (c) of Subparagraph (4) of Article 11 of the present Measures may not be changed
within five years, unless by virtue of any special reason.
Article 14
The term “place of habitual residence ” of the present Measures means such an ultimate place where a taxpayer successively resides
for one year or more after leaving his/her place of registered permanent residence.
Chapter IV Time Limit for Declaration
Article 15
A taxpayer who obtains an annual income of 120,000 Yuan or more shall make tax declaration to the taxation authorities within three
months after a tax year ends, .
Article 16
If the taxable income obtained from production and business operations by self-employed industrial and commercial households, investors
of sole proprietorship enterprise or enterprises in partnerships which should be prepaid in monthly installments, the taxpayer shall
make tax declaration within seven days after each month ends; and if such taxable income should be prepaid in quarterly installments,
the taxpayer shall make tax declaration within seven days after each quarter ends. The taxpayer shall make clearing-up settlement
of payments within three months after a tax year ends.
Article 17
Where the taxable income obtained from contractual or leased operation of enterprises and institutions once at the end of a year,
the taxpayer shall make tax declaration within 30 days after the incomes are obtained; and where such incomes are obtained by several
times within a tax year, the taxpayer shall make tax declaration of advanced payments within seven days of the month following the
date in which the income was obtained each time; and make clearing-up settlement of the payments within three months after a tax
year ends.
Article 18
A taxpayer who obtains incomes from abroad shall make tax declaration to the taxation authorities within the territory of China within
30 days after a tax year ends.
Article 19
Except for the circumstances stipulated in Articles 15 to 18 of the present Measures, a taxpayer who should make tax declaration
for obtaining other kinds of income shall make tax declaration to the taxation authorities within seven days of the month following
the date in which the income was obtained.
Article 20
If a taxpayer can not make tax declaration within the stipulated time limit and requires to make the postponement, he/she shall be
handled in accordance with Article 27 of the Law concerning the Administration of Tax Collection and Article 37 of the Detailed
Rules for the Implementation of the Law concerning the Administration of Tax Collection.
Chapter V Methods for Declaration
Article 21
Tax declaration can be made by means of data messages or posts, or directly to the taxation authorities, or by other means consistent
with the provisions as stipulated by the taxation authorities.
Article 22
Where the tax declaration is made by means of data messages, the taxpayer shall keep related paper materials within the time limit
and in accordance with the requirements as stipulated by the taxation authorities .
Article 23
Where the tax declaration is made by means of post mail , the receipts of registered letters issued by the post office shall be the
proof of declaration, and the postmark date shall be taken as the actual date of declaration.
Article 24
A taxpayer may authorize an intermediary institution which is qualified to be the tax agency or someone else to make tax declaration.
Chapter VI Tax Declaration Administration
Article 25
The taxation authority shall publish all sorts of specimens of tax return on its website or place them at its tax service hall for
taking cognizance of tax declarations so as to be freely downloaded or used by taxpayers at any time.
Article 26
The taxation authorities shall remind those taxpayers who obtain an annual income of 120,000 Yuan or more to make self-declaration
by appropriate means within the legal time limit for tax declaration every year.
Article 27
The taxation authority that takes cognizance of tax declarations shall, according to the taxpayers’ declarations, handle the procedures
for collecting, surcharging, refunding and deducting taxes in accordance with the provisions.
Article 28
The taxation authorities shall draw tax paid certificates in accordance with the corresponding provisions for those taxpayers who
have made tax declaration and paid taxes.
Article 29
The taxation authorities shall keep the tax declaration information secret for the taxpayers in accordance with the law.
Article 30
Where a taxpayer changes the place for tax declaration, he shall report it to the former taxation authorities for archival filing,
and the former taxation authorities shall timely send the information about the taxpayer’s changing of the place for tax declaration
to the new taxation authorities.
Article 31
The taxation authorities shall set up tax payment archives for the taxpayers who have made tax declaration, and shall implement dynamic
administration.
Chapter VII Legal Liabilities
Article 32
Where a taxpayer fails to make tax declaration or submit tax payment materials within the stipulated time limit, it shall be handled
in accordance with Article 62 of the Law concerning the Administration of Tax Collection.
Article 33
Where a taxpayer forges, alters, conceals or illegally destroys accounting books or bookkeeping documentations, or overstates expenses
or does not state or understates revenues in the accounting books, or refuses to make tax declaration after having been informed
by the taxation authority to do so or makes spurious tax declaration, refuses to pay or underpays the taxes payable, it shall be
handled in accordance with Article 63 of the Law concerning the Administration of Tax Collection.
Article 34
Where a taxpayer fabricates any spurious tax calculation basis, it shall be handled in accordance with Paragraph 1 of Article 64
of the Law concerning the Administration of Tax Collection.
Article 35
Where a taxpayer obtains taxable income that should be withheld by a withholding agent, but the withholding agent fails to withhold
or collect the taxes which should have been withheld or collected, it shall be handled in accordance with Article 69 of the Law
concerning the Administration of Tax Collection.
Article 36
Where a tax official has any self-seeking misconduct or duty negligence, and fails to collect or under-collect the taxes payable,
he/she shall be handled in accordance with Paragraph 1 of Article 82 of the Law concerning the Administration of Tax Collection.
Article 37
Where a tax official abuses his/her official capacity and raises difficulties for taxpayers on purpose, he/she shall be handled in
accordance with Paragraph 2 of Article 82 of the Law concerning the Administration of Tax Collection.
Article 38
Where a taxation authority or tax official fails to keep secrets for taxpayers, it shall be handled in accordance with Article 87
of the Law concerning the Administration of Tax Collection.
Article 39
Where a tax agent violates the tax laws or administrative regulations, causing taxpayers fail to pay or underpay taxes, he/she shall
be handled in accordance with Article 98 of the Detailed Rules for the Implementation of the Law concerning the Administration of
Tax Collection.
Article 40
Any other tax-related violation shall be handled in accordance with the related tax laws and regulations.
Chapter VIII Supplementary Provisions
Article 41
The tax declaration returns shall be uniformly printed by the local taxation bureau of each province, autonomous region, municipality
directly under the Central Government or city specifically designated in the state plan in accordance with the specimens as stipulated
by the State Administration of Taxation.
Article 42
Other matters concerning tax declaration shall be governed by the Law in respect of the Administration of Tax Collection, the Individual
Income Tax Law and other related laws and regulations.
Article 43
The tax declaration of an annual income of 120,000 Yuan or more as stipulated in Subparagraph 1 of Article 2 of the present Measures
shall come into force as of January 1, 2006 in accordance with the time for implementation as stipulated in the Decision concerning
Revising the Individual Income Tax Law of the People’s Republic of China which is adopted at the 18th meeting of the Standing Committee
of the 10th National People’s Congress.
Article 44
The provisions in respect of tax declaration under the circumstances as stipulated in Subparagraphs (2) to (4) of Article 2 of the
present Measures shall come into force as of January 1, 2007, and the Circular of the State Administration of Taxation concerning
Printing and Distributing the Provisional Measures for the Self-declaration of Individual Income Tax (Guo Shui Fa [1995] No. 077)
shall be concurrently abolished.
Form 1 Individual Income Tax Return
Form 1
Individual Income Tax Return
For
individuals having an annual income of over 120,000 RMB Yuan
Taxpayer’s IDnumber:
Taxpayer’s name signature/stamp:
Income year:
Date of filing:
onetary unit: RMB Yuan
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Taxpayer’s name |
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Nationality |
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ID number |
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ID Type |
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Date
of arrival in China |
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Profession |
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Employer |
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Habitual residence |
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Address
in China |
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P.C. |
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Tel. |
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Items
of income |
Annual Income |
Tax payable |
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