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Personal income tax | Personal income is subject to 9 exemptions and 33 tax exemptions

Personal income is subject to personal income tax and personal income exempted from personal income tax. According to relevant laws and regulations, in October 2022, it will be sorted as follows: (Content sorting provider: Aiyang Enterprise Consulting Xiaoxiao Beauty Teacher WeChat ID: 10)

This article directory show directory

A total of 9 items of personal income tax need to be paid

(XNUMX) Income from wages and salaries

Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies, and other income related to employment or employment that an individual obtains due to his position or employment.That is to say, as long as the income obtained by an individual is related to the position or employment, regardless of the capital expenditure channel of the unit or the payment in the form of cash, in kind, negotiable securities, etc., it is the taxable object of the income item of wages and salaries. .

(XNUMX) Income from labor remuneration

Income from labor service refers to the income obtained by individuals who independently engage in various skills and provide various labor services.Such as design, decoration, installation, drawing, testing, testing, medical treatment, law, accounting, consulting, lecturing, news, broadcasting, translation, reviewing, painting, sculpture, film and television, sound recording, video, performance, performance, advertising, Income from exhibitions, technical services, introduction services, brokerage services, agency services and other labor services.

(XNUMX) Income from author's remuneration

Income from author’s remuneration refers to the income obtained by an individual from the publication and publication of his works in the form of books and newspapers.The "work" mentioned here refers to the works including Chinese and foreign characters, pictures, musical scores, etc. that can be published and published in the form of books and newspapers; "personal works" include my own works, translated works, etc.Individuals who obtain remuneration for posthumous works shall be taxed according to the items of remuneration income.

(XNUMX) Income from royalties

The income from royalties refers to the income obtained by individuals who provide the right to use patents, copyrights, trademarks, non-patented technologies and other franchises.The income obtained by providing the right to use the copyright does not include the income from the author's remuneration.The income obtained by the author from the public auction (bidding) of the original or photocopy of his written manuscript shall be taxed according to the item of royalties.

(XNUMX) Operating income

1. The income obtained by individual industrial and commercial households from production and business activities, the income from the production and operation of the sole proprietorship enterprise and the partnership enterprise registered in China by the investors of the sole proprietorship enterprise and the individual partners of the partnership enterprise;

2. Income obtained by individuals from running schools, medical care, consulting and other paid services in accordance with the law;

3. Income obtained by individuals from contracting, leasing, subcontracting and subletting of enterprises and institutions;

4. Income obtained by individuals engaged in other production and business activities.

(XNUMX) Income from interest, dividends and bonuses

Income from interest, dividends and bonuses refers to the income from interest, dividends and bonuses obtained by individuals owning creditor's rights and equity.Interest refers to personal deposit interest (the state announced that the interest tax will be abolished the next day on October 2008, 10), loan interest and interest on purchasing various bonds.Dividends, also known as dividends, refer to the investment benefits that stock holders regularly obtain from the joint-stock company with the stock in accordance with the articles of association of the joint-stock company.Dividends, also known as company (enterprise) dividends, refer to the profit that a joint-stock company or enterprise distributes in excess of dividends according to the profits that should be distributed.When a joint-stock enterprise pays dividends or bonuses to individual shareholders in the form of shares, it is to distribute bonus shares, and the denomination of the distributed shares shall be used as the income amount for tax calculation.

(XNUMX) Income from property lease

Property lease income refers to the income obtained by individuals from leasing buildings, land use rights, machinery, equipment, vehicles and ships, and other properties.Property includes movable and immovable property.

(XNUMX) Income from property transfer

Property transfer income refers to the income obtained by individuals from transferring negotiable securities, equity, buildings, land use rights, machinery and equipment, vehicles and vessels, and other self-owned properties to others or units, including income obtained from the transfer of real and movable properties.Income from personal stock trading is not subject to tax.

(XNUMX) Incidental income

Refers to personal winnings, winnings, winning lottery and other incidental income.For the income obtained by an individual, if it is difficult to define the taxable income item, it shall be determined by the competent taxation department of the State Council.

33 Situations for Exemption from Personal Income Tax

(XNUMX) Subsidies and allowances that do not belong to the nature of wages and salaries

Relevant laws and regulations:

The Notice of the State Administration of Taxation on Printing and Distributing the Regulations on Several Issues Concerning the Collection of Individual Income Tax (Guo Shui Fa [1994] No. 089) stipulates:

The following subsidies and allowances that do not belong to the nature of wages and salaries, or income that do not belong to the taxpayer's own wages and salaries, are not taxable:

One-child subsidy; childcare subsidy; travel subsidy, missed meal subsidy.

The "Notice of the Ministry of Finance and the State Administration of Taxation on the Determination of the Scope of Subsidies for Mistaken Meals" (Cai Shui Zi [1995] No. 82) stipulates:

According to the regulations of the financial department, individuals work in urban or suburban areas for business, and they cannot eat in the workplace or return, and if they really need to eat out, according to the actual number of missed meals, the wrong meal fee received according to the prescribed standard will not be subject to personal income tax.Subsidies and allowances given to employees by some units in the name of meal allowances should be incorporated into the monthly wages and salaries for individual income tax purposes.

(XNUMX) Subsidy income from official vehicles and communications can be deducted from a certain standard official fee

The deduction standard for official expenses shall be calculated by the provincial local taxation bureau based on the actual occurrence of the taxpayer's official transportation and communication expenses, and shall be determined after being approved by the provincial people's government and reported to the State Administration of Taxation for the record.

Relevant laws and regulations:

According to the "Notice of the State Administration of Taxation on Policy Issues Concerning Individual Income Tax" (Guo Shui Fa [1999] No. 58):

The subsidy income for official vehicles and communications obtained by individuals due to the reform of the official vehicle and communication system, after deducting a certain standard of official expenses, is calculated and withheld and paid as individual income tax according to the income items of "wages and salaries".

(XNUMX) Welfare fees (living allowances) are exempt from tax

In Article XNUMX of the Individual Income Tax Law, tax-exempt welfare fees refer to living allowances paid to individuals from welfare fees or labor union funds withheld by enterprises, institutions, state agencies, and social organizations in accordance with relevant state regulations.

Relevant laws and regulations:

According to the "Notice of the State Administration of Taxation on the Determination of the Scope of Living Allowance" (Guo Shui Fa [1998] No. 155):

Living allowance refers to the temporary living expenses paid to the taxpayer himself or his family from the normal life of the taxpayer himself or his family due to certain specific events or reasons, and his employer pays him from the welfare fees or trade union funds provided by the state. hardship allowance.

(XNUMX) Relief funds and pensions are exempt from taxation

Relevant laws and regulations:

According to Article XNUMX, Item XNUMX of the Individual Income Tax Law:

Relief funds and pensions are exempt from personal income tax.

Article XNUMX of the Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China:

Relief money refers to the subsidy for living difficulties paid to individuals by the civil affairs departments of the people's governments at all levels.

(XNUMX) Exemption for work-related injury insurance benefits

Work-related injury insurance benefits, including the one-time disability subsidy, disability allowance, one-time work-related injury medical subsidy, one-time disability employment subsidy, work-related injury medical treatment, and hospital food subsidy obtained by the injured worker in accordance with the "Work-related Injury Insurance Regulations" , Out-of-town medical treatment, transportation, food and lodging expenses, work injury rehabilitation expenses, assistive device expenses, living care expenses, etc., as well as funeral subsidies, dependent relatives pensions and lump-sum pensions obtained by employees who died due to work and their close relatives Work-related death allowances, etc. "

Relevant laws and regulations:

According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Individual Income Tax Policies for Work Injury Insurance Benefits Obtained by Work Injured Workers" (Cai Shui [2012] No. 40):

"586. The work-related injury insurance benefits obtained by work-injured workers and their close relatives in accordance with the Regulations on Work-related Injury Insurance (Order No. XNUMX of the State Council) are exempt from individual income tax.

(XNUMX) The "three insurances and one housing fund" paid by units and individuals are exempt from taxation

According to Caishui [2006] No. 10:

The basic endowment insurance premiums, basic medical insurance premiums and unemployment insurance premiums actually paid by enterprises and institutions in accordance with regulations are exempt from individual income tax; the basic endowment insurance premiums, basic medical insurance premiums and unemployment insurance premiums paid by individuals in accordance with regulations are allowed to Deducted from personal taxable income.

Units and individuals are allowed to deduct their taxable income from their actual housing provident fund within the range of 12% of the average monthly salary of the employees themselves in the previous year.

(XNUMX) The "three insurances and one housing fund" withdrawn by individuals are exempt from tax

Relevant laws and regulations:

According to Caishui [2006] No. 10:

Individuals are exempt from personal income tax when they actually receive (pay) the basic endowment insurance, basic medical insurance, unemployment insurance and housing provident fund that they originally deposited.

(XNUMX) Maternity allowance tax exemption

Relevant laws and regulations:

According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Individual Income Tax Policies Concerning Maternity Allowance and Maternity Medical Expenses" (Cai Shui [2008] No. 8):

The maternity allowances, maternity medical expenses or other allowances and subsidies of the nature of maternity insurance obtained by women giving birth in accordance with the maternity insurance measures formulated by the people's governments at or above the county level in accordance with the relevant provisions of the state are exempt from personal income tax.

(XNUMX) Subsidies and allowances issued in accordance with the unified regulations of the state are exempt from taxation

Relevant laws and regulations:

Article XNUMX of the Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China stipulates:

The subsidies and allowances issued by the unified regulations of the state refer to special government allowances, academician allowances, senior academician allowances issued in accordance with the regulations of the State Council, and other subsidies and allowances exempt from individual income tax as stipulated by the State Council.

(XNUMX) Retirement fees, retirement fees, etc. are exempt from tax

Relevant laws and regulations:

According to Article XNUMX of the Individual Income Tax Law of the People's Republic of China:

duty free.Specific provisions: Settlement allowances, retirement allowances, basic pensions or retirement allowances, retirement allowances, and retirement living allowances issued to cadres and employees in accordance with the unified regulations of the state are exempt from personal income tax;

(XNUMX) The subsidies obtained by senior experts with extended retirement age from their units are exempt from taxation

Relevant laws and regulations:

According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues Concerning Individual Income Tax" (Cai Shui Zi [1994] No. 20):

Senior experts (experts, scholars and academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering who enjoy special government allowances granted by the state and academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering) who have reached the retirement and retirement age, but due to work needs, appropriately extend the retirement age. Salary income is regarded as retirement wages, and retirement wages are exempt from personal income tax.

(50) XNUMX% reduction in cash rewards for job transformation of scientific and technological personnel

Relevant laws and regulations:

Caishui [2018] No. 58 stipulates:

According to the Law of the People's Republic of China on Promoting the Transformation of Scientific and Technological Achievements, the non-profit research and development institutions and institutions of higher learning approved in accordance with the law can reduce 50% of the cash rewards given to scientific and technological personnel from the income from the transformation of scientific and technological achievements. "Incomes from wages and salaries" shall be subject to personal income tax in accordance with the law.

(XNUMX) No tax on equity awards for scientific and technological personnel for the time being

Relevant laws and regulations:

According to Guoshuifa [1999] No. 125:

Scientific research institutions and colleges and universities transform their scientific and technological achievements into jobs and give individual rewards to scientific and technological personnel in the form of shares or capital contribution ratios.

(XNUMX) Salary allowances paid by the Asian Development Bank are exempt from tax

Relevant laws and regulations:

Caishui [2007] No. 93 stipulates:

For the salaries and allowances paid by the Asian Development Bank to Chinese citizens or nationals (including experts performing tasks for ADB), those personnel who have been confirmed by the Asian Development Bank to be employees of the Asian Development Bank or experts in the implementation of projects shall be paid in accordance with our country. Remunerations such as salaries and allowances stipulated in the tax law are exempt from personal income tax;

(XNUMX) Soldiers’ transfer fees, demobilization fees, and retirement funds are exempt from tax

Relevant laws and regulations:

Article XNUMX of the Individual Income Tax Law provides for tax exemption:

Item XNUMX: military personnel’s transfer fees, demobilization fees, and retirement benefits;

(XNUMX) Thirteen subsidies for military personnel

Relevant laws and regulations:

According to the "Notice of the Ministry of Finance and the State Administration of Taxation on the Collection of Individual Income Taxes on Military Cadres' Wages and Salaries" (Caishui Zi [1996] No. 14):

(1) Special government allowance; welfare subsidy; separation subsidy for husband and wife; subsidy for family members accompanying the army without working and living difficulties; health care expenses for one child; subsidy for child care and education; official service expenses (nanny expenses) of cadres above the service army; allowance for military food difference, Tax-free items belonging to military cadres or subsidies and allowances not belonging to their own income do not have to pay individual tax.

(2) There are 5 subsidies and allowances that are not taxed temporarily: military occupation allowance; allowances for hardship areas established by the army; professional allowances; basic-level military officer position allowances (battalion company and platoon leader position allowances); food allowances.

(XNUMX) The one-time retirement pension and one-time economic subsidy for retired soldiers are exempt from taxation

Relevant laws and regulations:

The Regulations on the Placement of Retired Soldiers (Order No. 608 of the State Council of the People's Republic of China and the Central Military Commission of the People's Republic of China) stipulates:

For retired soldiers who are self-employed, a one-time retirement payment shall be issued by the army, and the one-time retirement payment shall be specially arranged by the central finance; the local people's government may provide economic subsidies according to the actual local conditions. Provisions of the People's Government.The one-time retirement pension and one-time economic subsidy are exempt from personal income tax in accordance with state regulations.

(XNUMX) Meals of ocean-going crew

Relevant laws and regulations:

Guo Shui Fa [1999] No. 202 stipulates:

Since the crew's meal expenses are uniformly used for group meals and are not distributed to individuals, the special case allows this subsidy not to be included in the taxable wages and salary income of the crew members.

(XNUMX) XNUMX% discount on personal income tax for ocean-going seafarers

Relevant laws and regulations:

Announcement No. 2019 [97] of the Ministry of Finance and the State Administration of Taxation stipulates:

For ocean-going crew members who have accumulated 183 days of voyage in a tax year, their wages and salaries are included in the taxable income at 50%.

(XNUMX) Tax-free subsidies for epidemic prevention and control

Relevant laws and regulations:

Announcement No. 2020 [10] of the Ministry of Finance and the State Administration of Taxation stipulates:

Temporary work subsidies and bonuses obtained by medical personnel and epidemic prevention workers participating in the epidemic prevention and control work in accordance with the standards stipulated by the government are exempt from personal income tax.The standards stipulated by the government include the subsidy and bonus standards stipulated by governments at all levels.Temporary work subsidies and bonuses for personnel involved in epidemic prevention and control stipulated by the people's governments at or above the provincial level shall be implemented mutatis mutandis.It will be implemented from January 2020, 1, and the deadline will be announced separately depending on the epidemic situation.

(XNUMX) Protective supplies issued by units to prevent new coronary pneumonia

Relevant laws and regulations:

The Ministry of Finance and the State Administration of Taxation Announcement No. 2020 [10] stipulates:

The medicines, medical supplies and protective supplies (excluding cash) issued by the unit to individuals for the prevention of pneumonia caused by the new coronavirus infection are not included in wages and salaries, and are exempt from personal income tax.

(XNUMX) Income tax exemption for diplomatic personnel

Relevant laws and regulations:

Article XNUMX, Item XNUMX of the Individual Income Tax Law of the People's Republic of China stipulates:

Income of diplomatic representatives, consular officers and other personnel of embassies and consulates of various countries in China that should be exempted from tax in accordance with relevant laws;

(XNUMX) Eight subsidies for foreign personnel are exempted

Relevant laws and regulations:

Caishuizi [1994] No. 20 stipulates:

The following income is temporarily exempt from personal income tax:

(XNUMX) Housing subsidies, food subsidies, relocation expenses, and laundry expenses obtained by foreign individuals in non-cash or reimbursable forms.

(XNUMX) Domestic and overseas business travel subsidies obtained by foreign individuals according to reasonable standards.

(XNUMX) Fees for family visits, language training, children's education, etc. obtained by foreign individuals shall be considered reasonable after review and approval by the local tax authority.

(XNUMX) Exemption of salaries and salaries of foreign experts from specific sources

Relevant laws and regulations:

According to Caishuizi [1994] No. 20:

Wages and salaries earned by foreign experts who meet one of the following conditions are exempt from personal income tax:

1. According to the World Bank Special Loan Agreement, foreign experts sent directly by the World Bank to work in my country;

2. Experts sent directly by the United Nations organization to work in our country;

3. Experts working in China for UN aid projects;

4. Experts sent by the donor country to our country to work for the country's free aid projects;

5. The wages and salaries of cultural and educational experts who come to China to work within two years under the cultural exchange project signed by the two governments shall be borne by the country;

6. The wages and salaries of cultural and educational experts who have come to China to work within two years under the international exchange program of Chinese universities and colleges are borne by the country;

7. For experts who come to work in China through private scientific research agreements, their wages and salaries are borne by the government agencies of the country.

(XNUMX) Subsidies for the tax burden of overseas talents

Relevant laws and regulations:

Caishui [2019] No. 31 stipulates:

From January 2019, 1 to December 1, 2023, Guangdong Province and Shenzhen City will pay high-end talents from overseas (including Hong Kong, Macao and Taiwan, the same below) working in the Greater Bay Area based on the difference between the individual income tax burdens of the Mainland and Hong Kong. Subsidies are given to those in short supply, and the subsidy is exempt from personal income tax.

(XNUMX) Exemption for foreign technical officials related to the Olympic Games

Relevant laws and regulations:

Caishui [2017] No. 60 stipulates:

For foreign technical officials such as foreign consultants and referees who are invited by the Beijing Winter Olympics Organizing Committee and who come to China temporarily during the Beijing 2022 Winter Olympics, Winter Paralympics, and test competitions, and are engaged in Olympic-related work, obtained by the Beijing Winter Olympics The labor remuneration paid by the organizing committee and the test competition organizing committee is exempt from personal income tax.

(XNUMX) Subsidies in Tibet are exempt from tax

Relevant laws and regulations:

Caishuizi [1994] No. 021 stipulates:

Personal income tax is exempted for the allowances and floating wages in hard and remote areas obtained by individuals from the Tibet Autonomous Region, the additional wages for seniority, and the resettlement expenses and housing construction subsidies for retirees.

Caishuizi [1996] No. 91 stipulates:

The employees of organs and institutions working in the Tibet region, and the special allowances for Tibet obtained in accordance with the unified regulations of the state, are exempt from personal income tax.

(XNUMX) Each province determines the tax reduction rate for the income of disabled orphans and martyrs

Relevant laws and regulations:

Article XNUMX of the Individual Income Tax Law of the People's Republic of China states:

Under any of the following circumstances, individual income tax may be reduced. The specific range and period shall be prescribed by the people's government of the province, autonomous region, or municipality directly under the Central Government, and shall be reported to the standing committee of the people's congress at the same level for the record: Income of the disabled, orphans and martyrs.

(XNUMX) Tax-exemption of housing rental subsidies

Relevant laws and regulations:

The Ministry of Finance and the State Administration of Taxation Announcement No. 2019 [61] "Announcement on Preferential Tax Policies for Public Rental Housing":

The housing rental subsidy received from the local government by urban housing security households that meet the conditions specified by the local government is exempt from personal income tax.

(3) Partial tax exemption within XNUMX times of the one-time compensation income for the termination of the labor relationship

Relevant laws and regulations:

Caishui [2018] No. 164, Article XNUMX, Paragraph XNUMX stipulates:

When an individual terminates the labor relationship with the employer and obtains a one-time compensation income (including the economic compensation, living allowance and other subsidies issued by the employer), the part within 3 times the average salary of the local employee in the previous year is exempt from personal income tax; The part exceeding three times the amount is not included in the comprehensive income of the current year, and the comprehensive income tax rate table is applied separately for tax calculation.

(XNUMX) One-time bankruptcy settlement fee tax exemption

Relevant laws and regulations:

Caishui [2001] No. 157 stipulates:

When an enterprise is declared bankrupt in accordance with the relevant laws and regulations of the state, the one-time resettlement fee income obtained by the employees of the enterprise from the bankrupt enterprise shall be exempted from individual income tax.

(XNUMX) Deferred tax payment for equity incentives of non-listed companies

Relevant laws and regulations:

Caishui [2016] No. 101 stipulates:

The stock options, equity options, restricted stocks and equity incentives granted by non-listed companies to the employees of the company, if they meet the prescribed conditions, can be subject to a tax deferral policy after filing with the competent tax authority, that is, employees can temporarily suspend the tax payment when they obtain equity incentives. Tax is deferred until the time when the equity is transferred.

(XNUMX) Tax collection is deferred for individual employees who obtain quantitative assets with ownership

Relevant laws and regulations:

Guoshuifa [2000] No. 60 stipulates:

When a collectively-owned enterprise is restructured into a joint-stock cooperative enterprise, the relevant assets can be quantified to individual employees, and the collection of individual income tax shall be suspended for the quantified assets of an enterprise with ownership acquired by individual employees in the form of shares.

Source: Content Organizer: Aiyang Enterprise Consulting Xiaoxiao Beauty Teacher WeChat ID: 18000270205

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