State Administration of Taxation, Circular on Clarifying the Implementation of Personally Filing Tax Returns by Individuals with Annual Income of Rmb120,000 or More
国家税务总局关于明确年所得12万元以上自行纳税申报口径的通知
January 31, 2007 | BY
clpstaff &clp articles &Individuals required to report equity and property speculation gains in income tax returns.
Issued: December 15 2006
Main Contents: Aside from calculating one's annual income in accordance with the Measures for Filing Tax Returns for Individual Income Tax Personally (Trial Implementation), a taxpayer with an annual income of Rmb120,000 or more shall also calculate the amount of his/her annual income in accordance with the following stipulations.
Income from remuneration for personal services and income from royalties: tax fees paid in the course of providing personal services or transferring royalties or use rights may not be deducted.
Income from lease of property: tax fees paid by taxpayers in the course of leasing property may not be deducted; income in a lump sum derived from the lease of property for a period that crosses two or more financial years shall entirely be deemed income in the year it is actually derived.
Income from transfer of premises: where assessment of individual income tax is adopted, the annual income shall be calculated by converting the actual tax rates (1%, 2%, 3%) into taxable income rates (5%, 10%, 15%), respectively.
Interest income from individual savings deposits and coupon income from corporate bonds shall all be deemed income derived in the year it is actually derived;
Family proprietors and investors of wholly individually-owned enterprises: where individual income tax is assessed in accordance with tax rates, taxable income shall be calculated by converting the tax rate into a taxable income rate. In the case of partnership enterprises, partners shall determine their respective amounts of taxable income in accordance with the distribution ratio specified in the partnership agreement. Where the distribution ratio is not specified, the amount of taxable income shall be determined by evenly distributing the enterprise's income among the partners.
Income from the transfer of shares: in a tax year, any positive balance derived by offsetting the gains and losses from the transfer of shares shall be the amount of income for filing. Where the balance is negative, this item shall be filled in as "zero".
Related Legislation: Measures for Filing Tax Returns for Individual Income Tax Personally (Trial Implementation), Nov 6 2006, CLP 2006 No.10 p.10
clp reference:3230/06.12.15promulgated:2006-12-15This premium content is reserved for
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