According to the provisions of China's tax law, residents are obliged to pay individual income tax, in which wages and labor remuneration need to pay individual income tax, but there are also the following situations where individual income tax is not paid, so which income can not pay individual income tax? Do listed companies need to pay personal income tax for dividends? Let's have a look!
China's competent tax authorities have made detailed provisions on the taxpayers, tax scope, tax amount and tax calculation method of individual income tax. According to China's tax law, some income of residents can not pay individual income tax.
Which income can be exempted from personal income tax:
1. Subsidies and allowances issued in accordance with the unified provisions of the state
According to the regulations on the implementation of the individual income tax law of the people's Republic of China, the subsidies and allowances uniformly issued by the state refer to the government special subsidies, academician subsidies and senior academician subsidies issued in accordance with the provisions of the State Council, as well as other subsidies and allowances exempted from individual income tax in accordance with the provisions of the State Council.
2. Personal welfare
The individual income tax law stipulates that welfare expenses are exempt from individual income tax. Among them, welfare expenses withdrawn beyond the proportion or base specified by the state and various subsidies and subsidies paid to individuals in trade union funds do not belong to the scope of tax-free welfare expenses, and individual income tax shall be calculated and levied.
3. Only child allowance and childcare allowance
According to the notice of the State Administration of Taxation on printing and distributing the provisions of the State Administration of Taxation on Several Issues concerning the collection of individual income tax, individuals who obtain the one-child subsidy and childcare subsidy according to the specified standards will not be subject to individual income tax. However, the part exceeding the specified standard shall be incorporated into the salary income of the company.
4. Travel allowance
According to the announcement of the State Administration of Taxation on printing and distributing the provisions of the State Administration of Taxation on several issues of & lt; Levying Individual Income Tax & gt;, the 'travel allowance' does not belong to the subsidies and allowances of the nature of wages and salaries or the income of taxpayers' own wages and salaries, so it is not subject to individual income tax.
5. Dividends of listed companies
According to the notice on relevant issues such as the differentiated individual income tax policy for dividends and bonuses of listed companies, the income from dividends and bonuses of listed companies obtained by individuals from the publicly issued transfer market shall be exempted from individual income tax temporarily if the holding period exceeds 1 year.
6. 'five insurances and one fund'
According to the notice of the Ministry of Finance and the State Administration of Taxation on individual income tax policies related to basic old-age insurance premiums, basic medical insurance premiums, unemployment insurance premiums and housing provident fund, the basic medical insurance premiums actually paid by enterprises and institutions in accordance with the payment proportion or method specified by the state or the people's Government of the province (autonomous region or municipality directly under the central government) Unemployment insurance premiums are allowed to be deducted from individual taxable income. The housing accumulation fund actually paid by units and individuals within the range of no more than 12% of the employee's average monthly salary of the previous year is allowed to be deducted from the individual taxable income.
7. Personal donation
According to Article 24 of the regulations for the implementation of the individual income tax law, the donation of an individual's income to education and other public welfare undertakings refers to the donation of an individual's income to education and other social public welfare undertakings, areas suffering serious natural disasters and poverty-stricken areas through social organizations and state organs in China, If the donation amount does not exceed 30% of the taxable income declared by the taxpayer, it may be deducted from its taxable income.