many netizens are concerned about whether the current year-end bonus and tax calculation method will be changed. The Ministry of Finance recently issued the notice on the connection of preferential policies after the amendment of the individual income tax law, which gives a detailed description of the policies such as one-time bonus for the whole year, the extension of the annual performance salary of the person in charge of the central enterprise to realize the income and the term of office reward. Let's see how the implementation of the new tax law affects our daily life?
On August 31, 2018, the fifth meeting of the Standing Committee of the 13th National People's Congress passed the newly revised individual income tax law of the people's Republic of China. This revision of the personal income tax law has established a comprehensive and classified personal income tax system, implemented a comprehensive tax on part of the labor income, optimized and adjusted the tax rate structure, improved the standard of basic deduction of expenses for comprehensive income, set up special additional deduction items, and correspondingly improved the personal income tax collection and management system.
In order to ensure the smooth implementation of the new individual income tax law, the State Council amended the regulations on the implementation of the individual income tax law formulated in 1994. The main contents of the revision include: to increase the tax preference for overseas people who meet the personal standards of residents, so as to better attract overseas talents; to support and encourage independent entrepreneurship, to reduce the necessary expenditure for family livelihood when calculating the business income of individual businesses and other business entities; Make clear that the individual's payment of enterprise annuity and occupational annuity in line with the provisions of the state, the expenditure of purchasing commercial health insurance and tax deferred commercial endowment insurance in line with the provisions of the state, and other items specified by the State Council can be deducted according to law; Optimize the tax service related to the special additional deduction policy, and make it clear that the withholding agent can deduct the special additional deduction from the salary and salary income when withholding the tax, and deduct the special additional deduction from other comprehensive income when the final settlement is made, and the taxpayer can entrust the withholding agent or other units and individuals to handle the final settlement.
The revised regulations for the implementation of the individual income tax law shall be implemented simultaneously with the new individual income tax law from January 1, 2019.
(promulgated by order No. 142 of the State Council of the people's Republic of China on January 28, 1994, first revised according to the decision of the State Council on Amending the regulations for the implementation of the individual income tax law of the people's Republic of China on December 19, 2005, second revised according to the decision of the State Council on Amending the regulations for the implementation of the individual income tax law of the people's Republic of China on February 18, 2008, second revised according to the decision of the State Council on July 19, 2011 Decision of the State Council on the revision of the regulations of the people's Republic of China on the implementation of the individual income tax law
Article 1 These Regulations 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).
Article 2 for the purposes of the individual income tax law, the term "having a domicile in China" refers to habitual residence in China due to the household registration, family and economic interests; the term "income obtained from within and outside China" refers to income derived from within and outside China, respectively.
Article 3 except as otherwise provided by the competent department of Finance and taxation under the State Council, the following income, regardless of whether the place of payment is within the territory of China or not, shall be income from sources within the territory of China:
（1） Income from the provision of services within the territory of China due to employment, performance, etc;
（2） Income from leasing the property to the lessee for use within the territory of China;
（3） Income from licensing the use of various concessions in China;
（4） Income from the transfer of real estate and other property within the territory of China or from the transfer of other property within the territory of China;
（5） Income from interests, dividends and bonuses derived from enterprises, institutions, other organizations and individual residents within the territory of China.
Article 4 an individual who has no domicile in China and has lived in China for a total of 183 days for less than six consecutive years shall be exempted from paying individual income tax on his income derived from sources outside China and paid by units or individuals outside China after filing with the competent tax authorities; If a person has left China for more than 30 days once in any year when he has lived in China for 183 days in total, the consecutive years of the year when he has lived in China for 183 days in total shall be recalculated.
Article 5 if an individual who does not have a residence in China has lived in China for no more than 90 days in a tax year, the part of the income derived from China that is paid by an overseas employer and not borne by the employer's organization or place in China shall be exempted from individual income tax.
The sixth is the scope of individual income stipulated in the individual income tax law
（1） "Income from wages and salaries" refers to the wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies and other income related to the employment or employment of an individual.
（2） The term "income from remuneration for labor services" refers to the income derived by individuals from engaging in labor services, including design, decoration, installation, drawing, testing, medical treatment, law, accounting, consulting, lecturing, translation, manuscript review, calligraphy and painting, sculpture, film and television, sound recording, video recording, performance, advertisement, exhibition, technical services, introduction services, brokerage services, agency services and others Income from labor services.
（3） The term "income from remuneration for Manuscripts" refers to the income derived by individuals from the publication of their works in the form of books, newspapers and other forms.
（4） The term "income from royalties" refers to income derived by individuals from the right to the use of patents, trademarks, copyrights, non patented technologies and other concessions; income from the right to the use of copyrights does not include income from remuneration.
（5） Business income means:
1. Income from production and business activities of individual businesses, and income from production and business operations of sole proprietorship investors and individual partners of the partnership from sole proprietorship enterprises and partnerships registered in China;
2. Income obtained by an individual from engaging in school running, medical treatment, consultation and other paid service activities according to law;
3. Income obtained by individuals from contracting, leasing, subcontracting and Subleasing of enterprises and institutions;
4. Income from other production and business activities.
（6） The term "income from interest, dividend and bonus" refers to the income from interest, dividend and bonus obtained by an individual who owns creditor's rights, stock rights, etc.
（7） The term "income from property leasing" refers to the income derived by individuals from leasing real estate, machinery and equipment, vehicles and vessels and other property.
（8） The term "income from property transfer" refers to the income derived by individuals from the transfer of securities, stock rights, shares of property in the partnership, real estate, machinery and equipment, vehicles and vessels, and other property.
（9） The term "contingent income" refers to income of an individual winning, winning, winning lottery and other contingent nature.
Where it is difficult to define the taxable income items for the income obtained by individuals, the determination shall be made by the competent tax department of the State Council.
Article 7 the measures for the collection of individual income tax on the income from the transfer of shares shall be separately formulated by the State Council and reported to the Standing Committee of the National People's Congress for the record.
Article 8 the form of personal income includes cash, material objects, marketable securities and other forms of economic benefits. If the income is material objects, the amount of taxable income shall be calculated according to the price indicated on the obtained vouchers. If the price indicated on the vouchers is obviously low, the amount of taxable income shall be determined with reference to the market price; If the income is securities, the amount of taxable income shall be determined according to the face value and market price; if the income is other forms of economic benefits, the amount of taxable income shall be determined according to the market price.
Article 9 The term "national debt interest" as mentioned in Item 2, paragraph 1, Article 4 of the individual income tax law refers to the interest obtained by individuals holding the bonds issued by the Ministry of finance of the people's Republic of China; the term "financial bond interest issued by the state" refers to the interest obtained by individuals holding the financial bonds issued with the approval of the State Council.
Article 10. For the purposes of item 3, paragraph 1, Article 4 of the individual income tax law, the term "subsidies and allowances granted in accordance with the uniform provisions of the state" refers to the special government allowances and academician allowances granted 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.
Article 11 The term "welfare expenses" as mentioned in Item 4, paragraph 1, Article 4 of the individual income tax law refers to the living subsidies paid to individuals from the welfare expenses or labor union funds withheld by enterprises, institutions, state organs and social organizations in accordance with the relevant provisions of the state; the term "relief funds" refers to the living difficulties subsidies paid to individuals by the civil affairs departments of the people's governments at all levels.
Article 12 "the income of diplomatic representatives, consular officers and other personnel of embassies and consulates of various countries in China who are exempt from tax in accordance with relevant laws" mentioned in item 8, paragraph 1, Article 4 of the individual income tax law refers to the income exempted from tax in accordance with the regulations of the people's Republic of China on diplomatic privileges and immunities and the regulations of the people's Republic of China on Consular Privileges and immunities.
Article 13 the "other deductions determined according to law" mentioned in Item 1, paragraph 1, Article 6 of the individual income tax law includes the payment of enterprise annuity and occupational annuity in line with the state's regulations, the payment of commercial health insurance and tax deferred commercial endowment insurance in line with the state's regulations, and other items that can be deducted in accordance with the State Council's regulations.
Special deductions, special additional deductions and other deductions determined according to law shall be limited to the amount of taxable income of individual residents in one tax year; if there is no complete deduction in one tax year, it shall not be carried forward to subsequent years for deduction.
Article 14 The term "each time" mentioned in Item 2, 4 and 6 of the first paragraph of Article 6 of the individual income tax law shall be determined in accordance with the following methods:
（1） If the income from remuneration for labor services, remuneration for contributions and royalties belongs to one-off income, the income shall be obtained once; if the income is continuous income of the same project, the income obtained within one month shall be obtained once.
（2） The income from the lease of property shall be the income obtained within one month.
（3） The income from interest, dividend and bonus shall be the income obtained at the time of payment.
（4） Contingent income shall be obtained once for each time.
Article 15 The term "costs and expenses" as mentioned in Item 3, paragraph 1, Article 6 of the individual income tax law refers to all direct expenditures and indirect expenses allocated and included in costs incurred in production and business activities, as well as sales expenses, management expenses and financial expenses; The term "loss" refers to the loss caused by force majeure factors such as inventory loss, damage, scrap loss, transfer property loss, bad debt loss, natural disaster and other losses of fixed assets and inventories in production and business activities.
If the individual who obtains business income has no comprehensive income, when calculating the taxable income of each tax year, the expenses of 60000 yuan, special deduction, special additional deduction and other deductions determined according to law shall be deducted. Special additional deductions shall be deducted at the time of final settlement.
In the case of engaging in production or business operations, failing to provide complete and accurate tax payment information, and failing to calculate the amount of taxable income correctly, the amount of taxable income or the amount of taxable income shall be determined by the competent tax authorities.
Article 16 the original value of the property as prescribed in Item 5, paragraph 1, Article 6 of the individual income tax law shall be determined in accordance with the following methods:
（1） Securities shall be the purchase price and the relevant fees paid in accordance with the regulations at the time of purchase;
（2） For buildings, construction cost or purchase price and other related expenses;
（3） Land use right, the amount and development paid for obtaining the land use right