News Materials: Personal Income Tax Classification Tax System With Personal Tax Key Words

It is understood that Individual income tax The draft law has been revised and revised for many times, and will be preliminarily examined at the twenty session of the eleven NPC Standing Committee, held from 20 to 22 this month. Special editor has sorted out several key words of China's current personal income tax law to help netizens grasp all aspects. Individual tax reform Pulse.

　　 Individual income tax classification tax system --

From the international perspective, the tax system of personal income tax is mainly divided into comprehensive taxation system. Taxonomy And the three types of tax system, which are integrated and classified tax system. At present, most countries in the world adopt the tax system of combination and classification, while our country adopts taxonomy. Taxonomy is taxonomy of individuals with different sources and different nature. The tax is deducted at different rates and deducted at different rates. The main contents include:

　 Taxpayer The individual taxpayer is divided into two types: the resident taxpayer and the non resident taxpayer. The criterion is whether to meet the requirement of "having a residence in China or living in the territory for one year" in China. If the satisfaction is satisfied, the taxpayer will bear the unlimited tax liability, that is to say, it should pay taxes on the income derived from inside and outside China; otherwise, it will bear the limited tax liability for the non resident taxpayers, and only pay taxes on the territory of China.

　　 Taxable income: Taxable income in China's tax law is classified by 11 categories, including wages and salaries, income from production and operation of individual industrial and commercial households, income from remuneration and remuneration for enterprises and institutions, remuneration for remuneration for services, income from royalties, income from royalties, income from interest, dividends and bonuses, income from property lease, income from property transfer, incidental income, and other income determined by the financial department under the State Council.

　　 tax rate There are two kinds of personal income tax in China: excessive progressive tax rate and proportional tax rate. The excess progressive tax rate is also defined as the nine level excess progressive tax rate and the five level excess progressive tax rate according to the classification number. The income of wages and salaries is applicable to the nine level progressive progressive tax rate of 5%-45%. The income from the production and operation of individual industrial and commercial households is applicable to the income of the contracted and leased business of enterprises and institutions, and the income from production and operation of sole proprietorship enterprises and partnership investors, and the 5%-35% applies to the five level progressive progressive tax rate.

In addition, remuneration for remuneration, remuneration for remuneration for services, royalties, interest, dividends, dividends, income from lease and transfer of property, incidental income and other income shall be subject to a 20% proportional tax rate.

　　 Cost deduction Not known by most people, the tax threshold that we have widely discussed is attributable to this. The cost deduction of the current personal tax in China is deducted by two ways: quota and fixed rate. The method of deducting the cost of wages and salaries is deducted from the quota. It is the amount of taxable income after deducting the cost of 2000 yuan per month, and the quota of 2000 yuan is the so-called threshold of personal tax. It determines the minimum limit of taxable income.

　 Tax reduction and exemption At present, the main tax relief items stipulated in the personal income tax law are relatively extensive. Besides the bonus of the provincial governments, the ministries and commissions of the State Council and international organizations, and the reduction of personal income such as relief, welfare and retirement benefits, it is worth noting that the Ministry of Finance and Taxation of the State Council has also stipulated other tax relief items according to the authorization of the tax law, which mainly include: the income gained from the transfer of personal use for more than 5 years and the only family living room; the compensation for demolition of urban residents according to the national standards, and the income of laid-off workers.

　　 Collection and management: There are two ways of tax collection and deduction in China: tax deduction and self declaration. Among them, income from wages, salaries, remuneration for remuneration for services, income from royalties, proceeds from the use of Chartered assets, income from the transfer of property leases, dividends from interest dividends, incidental income and other income shall be erased by withholding agents; the income from production and operation of individual industrial and commercial households, the income from contracting and leaseholding of enterprises and institutions, and taxpayers' self declaration shall be adopted. In addition, taxpayers who earn more than $120 thousand a year, taxpayers who earn wages or salaries from two or more than two places in China, taxpayers who have obtained income from outside China, taxpayers who have obtained taxable income without withholding agents, and other taxpayers who conform to the regulations of the State Council shall also declare themselves according to the provisions of the tax law.