PRC Individual Income Tax Law (7th Revision)

中华人民共和国个人所得税法(第七次修正)

September 05, 2018 | BY

Susan Mok

Aggregate income is applied to individual income tax

Clp Reference: 3230/18.08.31 Promulgated: 2018-08-31 Effective: 2019-01-01

Issued: August 31, 2018

Effective: January 1, 2019

|

Main contents: An individual who has a residence in China or who, although not having a residence, is resident in China for at least 183 days in aggregate (it is currently one year) in a tax year is a tax-resident individual and he/she shall pay individual income tax on the income derived both inside and outside China in accordance herewith (Article 1).

The individual income tax rates shall be as follows:

(1) a 3% to 45% progressive tax rate shall apply to integrated income;

(2) a 5% to 35% progressive tax rate shall apply to business income; and

(3) a proportional tax rate of 20% shall apply to interest, dividend and extra dividend income, property lease income, property assignment income and casual income (Article 3).

Of the aggregate income of a tax-resident individual, the balance derived from subtracting expenses in the amount of Rmb60,000 (it is currently Rmb3,500 per month), special deductions, special additional deductions and other deductions determined in accordance with the law from the revenue for a tax year is his/her taxable income (Article 6).

clp reference:3230/18.08.31 issued:2018-08-31 effective:2019-01-01

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]