Decision of the Standing Committee of the National People's Congress on Amending the Individual Income Tax Law of the People's Republic of China
Decision of the Standing Committee of the National People's Congress on Amending the Individual Income Tax Law of the People's Republic of China
Decision of the Standing Committee of the National People's Congress on Amending the Individual Income Tax Law of the People's Republic of China
Order of the President of the People's Republic of China No.9
August 31, 2018
The Decision of the Standing Committee of the National People's Congress on Amending the Individual Income Tax Law of the People's Republic of China, adopted at the Fifth Session of the Standing Committee of the 13th National People's Congress of the People's Republic of China on August 31, 2018, is hereby promulgated and shall come into force as of January 1, 2019.
President of the People's Republic of China Xi Jinping
Decision of the Standing Committee of the National People's Congress on Amending the Individual Income Tax Law of the People's Republic of China
(Adopted at the Fifth Session of the Standing Committee of the 13th National People's Congress on August 31, 2018)
The following revisions were introduced at the Fifth Session of the Standing Committee of the 13th National People's Congress to the Individual Income Tax Law of the People's Republic of China:
I. The original Article 1 is revised to read: "any individual who has a domicile within the territory of China or who has no domicile but has stayed within the territory of China for an aggregate of 183 days or longer in a single tax year is considered as a resident individual." "A resident individual shall pay individual income tax for any income sourced within and outside the territory of China according to the provisions of this Law."
"Any individual who has no domicile and does not stay within the territory of China or who has no domicile but has stayed within the territory of China for less than 183 days in aggregate is considered as a non-resident individual." "A non-resident individual shall pay individual income tax for any income sourced within the territory of China according to the provisions of this Law."
"A tax year begins on January 1 and ends on December 31 under the Gregorian Calendar."
II. The original Article 2 is revised to read: "the following individual income shall be subject to individual income tax:
1. Wage and salary income;
2. Labor remuneration;
3. Author's remuneration;
4. Royalties;
5. Business income;
6. Interests, dividends and bonuses;
7. Income derived from leasing of property;
8. Income derived from transfer of property;
9. Occasional income.
For the income set out in Item 1 through Item 4 of the preceding paragraph (hereinafter referred to as the "general income"), the individual income tax shall be calculated on a consolidated basis by the tax year for resident individuals, but on an item-by-item basis by month or by time for non-resident individuals. For the income set out in Item 5 through Article 9, received by taxpayers, the individual income tax shall be calculated respectively in accordance with the provisions of this Law."
III. The original Article 3 is revised to read: "individual income tax rates:
1. For general income, progressive tax rates ranging from 3% to 45% shall apply (see the attached tax rate schedule);
2. For business income, progressive tax rates ranging from 5% to 35% shall apply (see the attached tax rate schedule); and
3. For interest, dividends, bonuses, income derived from leasing of property, income derived from transfer of property and occasional income, a proportional tax rate of 20% shall apply."
IV. The term "exempt from paying" in the original Article 4 is revised to read "exempt from".
The term "discharge pay" is added into Item 6 of the original Article 4 after the term "demobilization pay".
The term "retirement wages, retirement wages for veteran cadres" in Item 7 thereof is rewritten as "basic pensions or retirement payments or payments for veteran cadres".
The term "China" in Item 8 is removed.
Item 10 is revised to read: "other income exempt from tax as stipulated by the State Council."
A new paragraph is added as the second paragraph, reading: "policies concerning the other income exempt from tax as mentioned in Item 10 of the preceding paragraph shall be submitted by the State Council to the Standing Committee of the National People's Congress for record-filing."
V. The original Article 5 is revised to read: "value-added tax may be collected at a reduced rate under any of the following circumstances.
......
Order of the President of the People's Republic of China No.9
August 31, 2018
The Decision of the Standing Committee of the National People's Congress on Amending the Individual Income Tax Law of the People's Republic of China, adopted at the Fifth Session of the Standing Committee of the 13th National People's Congress of the People's Republic of China on August 31, 2018, is hereby promulgated and shall come into force as of January 1, 2019.
President of the People's Republic of China Xi Jinping
Decision of the Standing Committee of the National People's Congress on Amending the Individual Income Tax Law of the People's Republic of China
(Adopted at the Fifth Session of the Standing Committee of the 13th National People's Congress on August 31, 2018)
The following revisions were introduced at the Fifth Session of the Standing Committee of the 13th National People's Congress to the Individual Income Tax Law of the People's Republic of China:
I. The original Article 1 is revised to read: "any individual who has a domicile within the territory of China or who has no domicile but has stayed within the territory of China for an aggregate of 183 days or longer in a single tax year is considered as a resident individual." "A resident individual shall pay individual income tax for any income sourced within and outside the territory of China according to the provisions of this Law."
"Any individual who has no domicile and does not stay within the territory of China or who has no domicile but has stayed within the territory of China for less than 183 days in aggregate is considered as a non-resident individual." "A non-resident individual shall pay individual income tax for any income sourced within the territory of China according to the provisions of this Law."
"A tax year begins on January 1 and ends on December 31 under the Gregorian Calendar."
II. The original Article 2 is revised to read: "the following individual income shall be subject to individual income tax:
1. Wage and salary income;
2. Labor remuneration;
3. Author's remuneration;
4. Royalties;
5. Business income;
6. Interests, dividends and bonuses;
7. Income derived from leasing of property;
8. Income derived from transfer of property;
9. Occasional income.
For the income set out in Item 1 through Item 4 of the preceding paragraph (hereinafter referred to as the "general income"), the individual income tax shall be calculated on a consolidated basis by the tax year for resident individuals, but on an item-by-item basis by month or by time for non-resident individuals. For the income set out in Item 5 through Article 9, received by taxpayers, the individual income tax shall be calculated respectively in accordance with the provisions of this Law."
III. The original Article 3 is revised to read: "individual income tax rates:
1. For general income, progressive tax rates ranging from 3% to 45% shall apply (see the attached tax rate schedule);
2. For business income, progressive tax rates ranging from 5% to 35% shall apply (see the attached tax rate schedule); and
3. For interest, dividends, bonuses, income derived from leasing of property, income derived from transfer of property and occasional income, a proportional tax rate of 20% shall apply."
IV. The term "exempt from paying" in the original Article 4 is revised to read "exempt from".
The term "discharge pay" is added into Item 6 of the original Article 4 after the term "demobilization pay".
The term "retirement wages, retirement wages for veteran cadres" in Item 7 thereof is rewritten as "basic pensions or retirement payments or payments for veteran cadres".
The term "China" in Item 8 is removed.
Item 10 is revised to read: "other income exempt from tax as stipulated by the State Council."
A new paragraph is added as the second paragraph, reading: "policies concerning the other income exempt from tax as mentioned in Item 10 of the preceding paragraph shall be submitted by the State Council to the Standing Committee of the National People's Congress for record-filing."
V. The original Article 5 is revised to read: "value-added tax may be collected at a reduced rate under any of the following circumstances.
......