Personal income tax is a tax levied on the taxable income of individuals, self-employed businesses, individual investors in sole proprietorships, and lessees and contractors.
Specifically, it includes:
① Wages and salaries. Income from wages, bonuses, year-end bonuses, dividends, allowances, subsidies, etc. obtained by individuals in enterprises.
② Income from labor remuneration. Refers to the income obtained by individuals from engaging in labor services, including consulting services, technical services, brokerage services, personal part-time income, etc. (income obtained without formal employment in the company, and there is no employment relationship between the individual and the unit).
③ Income from royalties. Income obtained by individuals from publishing works, books, newspapers and periodicals, etc.
④ Income from royalties. Income obtained by individuals from providing the right to use patents, trademarks, copyrights, non-patented technologies and other franchises.
⑤ Income from business operations. Income obtained by self-employed businesses, sole proprietorships, and individual partners of partnerships.
⑥ Income from interest, dividends and bonuses. Income from interest, dividends and bonuses obtained by individuals from owning bonds and equity.
⑦ Income from property rental. Income obtained by individuals from renting out real estate, machinery and equipment, vehicles and ships and other properties.
⑧ Income from property transfer. Income obtained by individuals from transferring stocks, equity, property shares in partnerships, real estate, machinery and equipment, vehicles and ships and other properties.
⑨ Casual income. Refers to income from personal awards, prizes, lottery and other accidental income.
The comprehensive income of residents is subject to a seven-level progressive tax rate of 3% to 45%.
The annual taxable income should be deducted from the annual income minus expenses of 60,000 yuan and special deductions, special additional deductions, such as social security, provident fund, rent subsidies, children’s subsidies, etc.
The income from labor remuneration is subject to a three-level excess progressive withholding rate of 20% to 40%.
Business income is subject to a five-level progressive tax rate of 5% to 35%.
Property leasing, property transfer, interest, dividends, bonuses, incidental income, royalties, franchise fees, etc. are subject to a 20% proportional withholding rate.