People's Republic of China Individual Income Tax Law - Practical Edition

Author: None
Publisher:
Publish Date: 2006-07-01
Features: Every citizen has the obligation to pay taxes. For their income, what needs to be taxed, what can be tax-exempt, and what can be taxed at a reduced rate, as well as how the specific tax rates and standards are determined—all of these are addressed by the Individual Income Tax Law. According to the Individual Income Tax Law, individuals who have a place of residence in China or who are non-residents but have lived in China for more than one year are required to pay individual income tax. Those who do not fall into either of these categories but have income sourced within China must also pay individual income tax. The Individual Income Tax Law and its implementing regulations also specify in detail which types of income are subject to individual income tax (e.g., remuneration for labor services, winnings from lotteries), which types of income are tax-exempt (e.g., insurance compensation), and which types of income are eligible for tax reduction (e.g., income of persons with disabilities). The taxpayer of individual income tax is the individual who actually earns the income, while the payer of the income is the withholding agent. That is, when an individual receives their income, the payer of that income shall first withhold the individual income tax that is due. This book covers the Individual Income Tax Law of the People's Republic of China, the Implementing Regulations of the Individual Income Tax Law of the People's Republic of China, and the management measures for individual income tax, among other topics.