中华人民共和国个人所得税法(英文版)

INDIVIDUAL INCOME TAX LAW OF THE PEOPLE'S REPUBLIC OF CHINA

(Standing Committee, National People's Congress: 31 October 1993)

Whole Doc.

Article 1
Individual income tax shall be levied in accordance with the
provisions of this Law by individuals who have domicile in China, or
though without domicile but have resided for one year or more in China on
their income derived from sources within and outside China.
Individuals who are neither domiciled nor resident in China, or who
are not domiciled and reside for less than one year in China, shall pay
individual income tax in accordance with this Law on income derived form
sources within China.
Article 2
Individual income tax shall be levied on the following categories of
income:
(1) income from wages and salaries;
(2) income from production or business operation derived by
individual industrial and commercial households;
(3) income from contracted or leased operation of enterprises or
institutions;
(4) income from remuneration for personal service;
(5) income from author's remuneration;
(6) income from royalties;
(7) income from interest, dividends and bonuses;
(8) income from lease of property;
(9) income from transfer of property;
(10) contingent income; and
(11) other income specified as taxable by the finance department of
the State Council.
Article 3
Individual income tax rates:
(1) income from wages and salaries shall be taxed at progressive
rates ranging from 5% to 45% (see the appended tax rate schedule).
(2) income from production and business of individual industrialists
and merchants and income from contracted or leased operation of
enterprises or institutions shall be taxed at progressive rates ranging
from 5% to 35% (see the appended tax rate schedule).
(3) income from author's remuneration shall be taxed at a flat rate
of 20%. the amount of tax payable however shall be reduced by 30%.
(4) income from remuneration for personal service shall be taxed at a
flat rate of 20%. where a specific payment of income from remuneration for
personal service is excessively high, additional tax can be levied at a
rate to be specifically determined by the State Council.
(5) income from royalties, interest, dividends, bonuses, lease of
property and transfer of property, as well as contingent income and other
income shall be taxed at a flat rate of 20%.

Article 4
The following categories of income shall be exempted from individual
income tax:
(1) awards for achievements in science, education, technology,
culture, public health, physical culture and environmental protection
granted by the 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;
(2) interest income on saving deposits and national debt obligations
and other financial debentures issued by the state;
(3) subsidies and allowances received under the state uniform
provisions;
(4) welfare benefits, survivors pensions and relief payments;
(5) insurance indemnities;
(6) military severance pay and demobilization pay received by members
of the armed forces;
(7) settlement pay, severance pay, retirement pay and retirement
living allowances received by public servants and workers under state
uniform provisions;
(8) income derived by the diplomatic agents and consular officers and
other personnel who are exempt from tax under the provisions of the
relevant Laws of China;
(9) income exempt from tax as stipulated in the international
conventions to which the Chinese Government is a party and in agreements
it has entered into; and
(10) income exempt from tax with the approval of the finance
department of the State Council.
Article 5
In any of the following situations, individual income tax may be
reduced upon approval:
(1) income derived by disabled persons, unsupported aged persons or
members of martyr's family;
(2) the tax payer suffers major losses caused by disasters;
(3) other cases in which reduction is approved by the finance
department of the State Council.

Article 6
The amount 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 800 yuan
shall be the taxable income;
(2) for income from production or business operation derived by
individual industrial and commercial households, the taxable income shall
be the amount remaining from the gross income in a tax year after the
costs, expenses and losses have been deducted;
(3) for income from contracted or leased operation of enterprises or
institutions, the taxable income shall be the amount remaining from the
gross income in a tax year after the deduction of necessary expenses;
(4) for income from remuneration for personal service, author's
remuneration, royalties and lease of property, a deduction of 800 yuan
shall be allowed for expenses, if the amount received in a single payment
is less than 4000 yuan; for single payments of 4000 yuan or more, a
deduction of 20% shall be allowed for expenses. The remaining amount after
the deduction shall be the taxable income;
(5) for income from transfer of property, the taxable income shall be
the amount remaining from the gross transfer income after deducting the
original value of the property and reasonable expenses;
(6) for interest, dividends, bonuses, contingent income and other
income, the taxable income may be the full amount received in each
payment.
The part of individual income donated to educational and other public
welfare undertakings, shall be deducted from the taxable income in
accordance with the relevant regulations formulated by the State Council.
For the tax payer who have no domicile in China but derive wages and
salaries from sources within China, or have domicile in China but derive
wages and salaries from sources outside China, the additional deduction
for expenses shall be allowed on the basis of the average income level,
living standard and the changes of exchange rates. the scope of
application and amount of the additional deduction for expenses shall be
regulated by the State Council.
Article 7
Income tax paid to foreign tax authorities by the taxpayer on income
derived from sources outside China shall be allowed as credit against the
amount of income tax payable. The creditable amount, however, shall not
exceed the amount of tax otherwise payable under this Law in respect of
the income derived from the sources outside China.
Article 8
For individual income tax, the income earner shall be the taxpayer
and the paying unit or individual shall be the withholding agent.
Taxpayers that receive wages or salaries from two or more payers, or
taxpayers without withholding agent, shall file tax returns and pay tax
themselves.

Article 9
The tax withheld by the withholding agent on monthly basis, and the
tax paid by the self-reporting individual, shall be paid to the state
treasury within the first seven days of the following month together with
the tax returns filed with the tax authorities.
For income from wages and salaries, the tax shall be levied on
monthly basis. The tax shall be withheld by the withholding agent or paid
by the self-reporting taxpayers to the state treasury within the first
seven days of the following month together with the tax returns filed with
the tax authorities. For income from wages and salaries in specified
industries, the tax may be computed on annual basis and paid in advance in
monthly installments. specific rules shall be regulated by the State
Council.
For income from production or business operation derived by
individual industrial and commercial households, the tax payable shall be
computed on annual basis and paid in advance in monthly installments. Such
payments shall be made within the first seven days after the end of each
month and the final settlement shall be made within three months after the
end of each tax year. Any excess payment shall be refunded and any
deficiency repaid.
For income from contracted or leased operation of enterprises and
institutions, the tax payable shall be computed on annual basis and paid
to the state treasury within thirty days after the end of each tax year,
together with the tax returns filed with the tax authorities. For the
taxpayers receiving income from contracted or leased operation in
installment during the year, the tax payable on shall be paid in advance
installments within the first seven days after each time when a payment is
made, and the final settlement shall be made within three months after the
end of each tax year; and excess payment shall be refunded and any
deficiency repaid.
For taxpayers who derive income outside China, the tax payable shall
be paid to the state treasury within thirty days after the end of each tax
year, together with the tax returns filed with the tax authorities.
Article 10
All categories of income shall be computed in Renminbi (RMB). Income
in foreign currency shall be converted into Renminbi for tax purposes
according to the exchange rate quoted by the state exchange control
authorities.
Article 11
A handling fee of 2% of the amount of tax withheld shall be paid to
the withholding agent.
Article 12
The tax administration of the individual income tax shall be
proceeded in accordance with the LAW OF THE PEOPLE'S REPUBLIC OF CHINA
CONCERNING THE ADMINISTRATION OF TAX COLLECTION.
Article 13
The detailed rules and regulations for the implementation shall be
formulated by the State Council in accordance with this Law.
Article 14
This Law shall enter into force on the day of its promulgation.

SCHEDULE 1 OF INDIVIDUAL INCOME TAX RATES

(Applicable to income from Wages and Salaries)
------------------------------------------------------------------------
Grade | Monthly Taxable Income |Tax Rate|
| | (%) |
------|------------------------------------------------------|--------|
1 |Income of 500 yuan or less | 5 |
2 |That part of income in excess of 800 to 2000 yuan | 10 |
3 |That part of income in excess of 2000 to 5000 yuan | 15 |
4 |That part of income in excess of 5000 to 20000 yuan | 20 |
5 |That part of income in excess of 20000 to 40000 yuan | 25 |
6 |That part of income in excess of 40000 to 60000 yuan | 30 |
7 |That part of income in excess of 60000 to 80000 yuan | 35 |
8 |That part of income in excess of 80000 to 100000 yuan | 40 |
9 |That part of income in excess of 100000 yuan | 45 |
------|------------------------------------------------------|--------|
(Note: "Monthly taxable income" mentioned in this schedule refers to the
amount remaining from the gross income in a month after the deduction of
800 yuan or the additional deduction for expenses in accordance with the
provision of Article 6 of the Tax Law.)

SCHEDULE 2 OF INDIVIDUAL INCOME TAX RATES

(Applicable to income from production or business operation derived by
industrial and commercial house-holds and income from contracted or leased
operation of enterprises and institutions)
------------------------------------------------------------------------
Grade | Annual Taxable Income |Tax Rates|
| | (%) |
------|------------------------------------------------------|---------|
1 | Income of 500 yuan or less | 5 |
2 | That part of income in exces of 5000 to 10000 yuan | 10 |
3 | That part of income in excess of 10000 to 30000 yuan | 20 |
4 | That part of income in excess of 30000 to 50000 yuan | 30 |
5 | That part of income in excess of 50000 yuan | 35 |
------------------------------------------------------------------------
(Note: "Annual taxable income" mentioned in this schedule refers to the
amount remaining from the gross income in a tax year after the costs,
expenses and losses have been deducted in accordance with the provision of
Article 6 of the Tax Law.)