中华人民共和国个人所得税法（附英文）

个人所得税税率表二

（个体工商户的生产、经营所得和对企事业

单位的承包经营、承租经营所得适用）

　　本决定自1994年1月1日起施行。1986年1月7日国务院发布的《中华人民共和国城乡个体工商业户所得税暂行条例》和1986年9月25日国务院发布的《中华人民共和国个人收入调节税暂行条例》同时废止。本决定施行前制定的其他有关个人所得税的行政法规的内容与本决定相抵触的，以本决定为准。

　　《中华人民共和国个人所得税法》根据本决定作相应的修正，重新公布。

　　INDIVIDUAL INCOME TAX LAW OF THE PEOPLE'S REPUBLIC OF CHINA

　　(Standing Committee, National People's Congress: 31 October1993)

　　Whole Doc.

Article 1

　　Individual　income　tax　shall　be　levied　in　accordance　with　the

provisions of this Law byindividuals　who　have　domicile　in　China,　or

though without domicile but haveresided for one year or more in China　on

their income derived fromsources within and outside China.

　　Individuals who are neither domiciled nor resident in China,　or　who

are not domiciled and reside forless than one year in　China,　shall　pay

individual income tax inaccordance with this Law on income　derived　form

sources within China.

Article 2

　　Individual income tax shall be levied on the followingcategories　of

income:

　　(1) income from wages and salaries;

　　　(2)　income　from　production　or　business　operation　derived　by

individual industrial andcommercial households;

　　(3) income from contracted or　leased　operation　of　enterprises　or

institutions;

　　(4) income from remuneration for personal service;

　　(5) income from author's remuneration;

　　(6) income from royalties;

　　(7) income from interest, dividends and bonuses;

　　(8) income from lease of property;

　　(9) income from transfer of property;

　　(10) contingent income; and

　　(11) other income specified as taxable by the finance　department　of

the State Council.

Article 3

　　Individual income tax rates:

　　(1) income from wages and salaries　shall　be　taxed　at　progressive

rates ranging from 5% to 45%(see the appended tax rate schedule).

　　(2) income from production and business of individual　industrialists

and　merchants　and　income　from　contracted　or　leased　operation　of

enterprises or institutionsshall be taxed at　progressive　rates　ranging

from 5% to 35% (see the appendedtax rate schedule).

　　(3) income from author's remuneration shall be taxed at a　flat　rate

of 20%. the amount of taxpayable however shall be reduced by 30%.

　　(4) income from remuneration for personal service shall be taxed ata

flat rate of 20%. where aspecific payment of income from remuneration for

personal service is excessivelyhigh, additional tax can be　levied　at　a

rate to be specificallydetermined by the State Council.

　　(5) income from royalties, interest,　dividends,　bonuses,　lease　of

property and transfer ofproperty, as well as contingent income and　other

income shall be taxed at a flatrate of 20%.

Article 4

　　The following categories of income shall be exempted from　individual

income tax:

　　(1)　awards　for　achievements　in　science,　education,　technology,

culture, publichealth,　physical　culture　and　environmental　protection

granted by the provincialpeople's governments, ministries and commissions

under the State Council, thePeople's Liberation Army units at army　level

and above and by foreign orinternational organizations;

　　(2) interest income on saving deposits and national debt　obligations

and other financial debenturesissued by the state;

　　(3)　subsidies　and　allowances　received　under　the　state　uniform

provisions;

　　(4) welfare benefits, survivors pensions and relief payments;

　　(5) insurance indemnities;

　　(6) military severance pay and demobilization pay received bymembers

of the armed forces;

　　(7) settlement pay, severance　pay,　retirement　pay　and　retirement

living allowances received bypublic　servants　and　workers　under　state

uniform provisions;

　　(8) income derived by the diplomatic agents and consular officersand

other personnel who areexempt　from　tax　under　the　provisions　of　the

relevant Laws ofChina;

　　(9) income　exempt　from　tax　as　stipulated　in　the　international

conventions to which the ChineseGovernment is a party and　in　agreements

it has entered into;and

　　(10) income　exempt　from　tax　with　the　approval　of　the　finance

department of the StateCouncil.

Article 5

　　In any of the following situations,　individual　income　tax　may　be

reduced upon approval:

　　(1) income derived by disabled persons, unsupported aged　persons　or

members of martyr'sfamily;

　　(2) the tax payer suffers major losses caused by disasters;

　　(3) other cases　in　which　reduction　is　approved　by　the　finance

department of the StateCouncil.

Article 6

　　The amount of taxable income shall be computed as follows:

　　(1) for income from wages and salaries, a monthly　deduction　of　800

yuan shall be allowed forexpenses and that part in　excess　of　800　yuan

shall be the taxableincome;

　　(2) for income from　production　or　business　operation　derived　by

individual industrial andcommercial households, the taxable income　shall

be the amount remaining from thegross income in　a　tax　year　after　the

costs, expenses and losses havebeen deducted;

　　(3) for income from contracted or leased operation ofenterprises　or

institutions, the taxable incomeshall be the amount　remaining　from　the

gross income in a tax year afterthe deduction of necessary expenses;

　　(4) for income　from　remuneration　for　personal　service,　author's

remuneration, royalties andlease of property, a　deduction　of　800　yuan

shall be allowed for expenses,if the amount received in a single　payment

is less than 4000 yuan; forsingle　payments　of　4000　yuan　or　more,　a

deduction of 20% shall beallowed for expenses. The remaining amount after

the deduction shall be thetaxable income;

　　(5) for income from transfer of property, the taxable income shallbe

the amount remaining from thegross transfer income　after　deducting　the

original value of the propertyand reasonable expenses;

　　(6) for interest, dividends, bonuses,　contingent　income　and　other

income, the taxableincome　may　be　the　full　amount　received　in　each

payment.

　　The part of individual income donated to educational and otherpublic

welfareundertakings,　shall　be　deducted　from　the　taxable　income　in

accordance with the relevantregulations formulated by the State Council.

　　For the tax payer who have no domicile in China but derivewages　and

salaries from sources withinChina, or have domicile in China　but　derive

wages and salaries from sourcesoutside China,　the　additional　deduction

for expenses shall be allowed onthe basis of the　average　income　level,

living　standard　and　the　changes　of　exchange　rates.　the　scope　of

application and amount of theadditional deduction for expenses　shall　be

regulated by the StateCouncil.

Article 7

　　Income tax paid to foreign tax authorities by the taxpayeron　income

derived from sources outsideChina shall be allowed as credit against　the

amount of income tax payable.The creditable amount,　however,　shall　not

exceed the amount of taxotherwise payable under this Law　in　respect　of

the income derived from thesources outside China.

Article 8

　　For individual income tax, the income earner shall　be　the　taxpayer

and the　paying　unit　or　individual　shall　be　the　withholding　agent.

Taxpayers that receive wages orsalaries　from　two　or　more　payers,　or

taxpayers without withholdingagent, shall file tax returns　and　pay　tax

themselves.

Article 9

　　The tax withheld by the withholding agent on monthly basis,　and　the

tax paid by the self-reportingindividual, shall　be　paid　to　the　state

treasury within the first sevendays of the following month together　with

the tax returns filed with thetax authorities.

　　For income from wages and　salaries,　the　tax　shall　be　levied　on

monthly basis. The tax shall bewithheld by the withholding agent or　paid

by the self-reporting taxpayersto the state　treasury　within　the　first

seven days of the followingmonth together with the tax returns filed with

the tax authorities. Forincome　from　wages　and　salaries　in　specified

industries, the tax may becomputed on annual basis and paid in advance in

monthly installments. specificrules　shall　be　regulated　by　the　State

Council.

　　　For　income　from　production　or　business　operation　derived　by

individual industrial andcommercial households, the tax payable shall　be

computed on annual basis andpaid in advance in monthly installments. Such

payments shall be made withinthe first seven days after the end　of　each

month and the final settlementshall be made within three months after the

end of each taxyear.　Any　excess　payment　shall　be　refunded　and　any

deficiency repaid.

　　For income from contracted or leased　operation　of　enterprises　and

institutions, the tax payableshall be computed on annual basis　and　paid

to the state treasury withinthirty days after the end of each　tax　year,

together with the tax returnsfiled with　the　tax　authorities.　For　the

taxpayers　receiving　income　from　contracted　or　leased　operation　in

installment during the year, thetax payable on shall be paid　in　advance

installments within the firstseven days after each time when a payment is

made, and the final settlementshall be made within three months after the

end of each taxyear;　and　excess　payment　shall　be　refunded　and　any

deficiency repaid.

　　For taxpayers who derive income outside China, the taxpayable　shall

be paid to the state treasurywithin thirty days after the end of each tax

year, together withthe　tax　returns　filed　with　the　tax　authorities.

Article 10

　　All categories of income shall be computed in Renminbi(RMB).　Income

in foreign currency shall beconverted　into　Renminbi　for　tax　purposes

according to theexchange　rate　quoted　by　the　state　exchange　control

authorities.

Article 11

　　A handling fee of 2% of the amount of tax withheld shall be　paid　to

the withholding agent.

Article 12

　　The　tax　administration　of　the　individual　income　tax　shall　be

proceeded in accordance with theLAW OF THE　PEOPLE'S　REPUBLIC　OF　CHINA

CONCERNING THE ADMINISTRATION OFTAX COLLECTION.

Article 13

　　The detailed rules and regulations for the　implementation　shall　be

formulated by the State Councilin accordance with this Law.

Article 14

　　This Law shall enter into force on the day of itspromulgation.

　　SCHEDULE 1 OF INDIVIDUAL INCOME TAX RATES

　　　　　(Applicable to income from Wages andSalaries)