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China Individual Income Tax Law Amendment (Draft)

China Individual Income Tax Law Amendment (Draft)


1. Clause 1 of Article 6 is hereby amended and as follows: The taxable amount for monthly income from wages and salaries shall be the balance after deduction of RMB3,000 from the monthly income. At the sametime, the note to "Individual Income Tax Rates - Schedule 1" is also amended accordingly.


2. The term "within 7 days" is hereby amended as follows: "within 15 days".
3. The "Individual Income Tax Rates - Schedule 1" is hereby amended as follows:
Grade Monthly Taxable Income Tax Rate(%)
1 RMB1500 or less 5
2 The part exceeding 1500 and up to 4500 10
3 The part exceeding 4500 and up to 9000 20
4 The part exceeding 9000 and up to 35000 25
5 The part exceeding 35000 and up to 55000 30
6 The part exceeding 55000 and up to 80000 35
7 The part exceeding 80000 45

(Note: The monthly taxable income from wages and salaries shall be the balance after deduction of RMB3,000 from the monthly income as stipulated in Article 6.)


4. The "Individual Income Tax Rates - Schedule 2" is hereby amended as follows (Applicable for income from production and business operations of individual industrial and commercial housholds and income from contract and leasing operations of enterprises and institutions):
Grade Annual Taxable Income Tax Rate(%)
1 RMB15000 or less 5
2 The part exceeding 15,000 and up to 30,000 10
3 The part exceeding 30,000 and up to 60,000 20
4 The part exceeding 60,000 and up to 100,000 30
5 The part exceeding 100,000 35

(Note: The annual taxable income mentioned in this table refers to the balance of the gross amount in a tax year after deducting costs, expenses and losses in accordance with the provisions of Article 6 of this Law.)


This amendment takes effect on.


The Individual Income Tax Law of the People’s Repubic of China will be revised in accordance with this amendment.


 



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