FAQQ&A Regarding Effective Tax Incentives before the End of 2027 (2)
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Q： |
For small and low-profit enterprises with an annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan, a reduction to 25% of the annual taxable income will be regarded as the final taxable income. What is the tax rate for corporate income tax payable? |
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A： |
20%.
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Q： |
How can individual residents enjoy the preferential policy of personal income tax for annual one-time bonuses in accordance with the Notice of the State Administration of Taxation on Adjusting the Calculation and Collection of Personal Income Tax on Individual Obtaining Annual one-time bonuses and Other Matters (Guo Shui Fa [2005] No. 9)? |
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A： |
Individual residents who receive a one-time bonus for the whole year which comply with the provisions of the "Notice of the State Administration of Taxation on Adjusting the Methods for Calculating and Levying Individual Income Tax on Individual Obtaining a one-time bonus for the whole year" (Guo Shui Fa [2005] No. 9), the one-time bonus is not included in the comprehensive income for the current year. The amount obtained by dividing the annual one-time bonus income by 12 months is used to determine the applicable tax rate and quick deduction based on the monthly converted comprehensive income tax rate table, calculate taxes separately. |
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Q： |
What conditions must foreign individuals meet in order to choose to enjoy the special additional deduction of personal income tax, or to choose to enjoy the tax exemption from housing subsidies, language training fees, children's education fees and other subsidies according to the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues Concerning Personal Income Tax" (Cai Shui Zi [1994] No. 020), the Notice of the State Administration of Taxation on the Implementation of Individual Income Tax Exemption for Foreign Individuals Obtaining Subsidies (Guo Shui Fa [1997] No. 54) and the Notice of the Ministry of Finance and the State Administration of Taxation on the Exemption of Individual Income Tax for Foreign Individuals Obtaining Housing and Other Subsidies in Hong Kong and Macao Regions (Cai Shui [2004] No. 29) , but it cannot be enjoyed simultaneously. Once selected, foreign individuals are not allowed to change within a tax year. |
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A： |
The foreign individuals must be tax residents to enjoy the above tax policies. |
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Q： |
Which cities are the preferential policies of providing personal income tax free subsidies to foreign high-end and scarce talents (including Hong Kong, Macao, and Taiwan) working in the Greater Bay Area applicable? |
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Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing are the nine cities in the Pearl River Delta region of Guangdong Province. |
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Q： |
How to calculate tax payment for individuals who obtain two or more equity incentives within a tax year? |
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Individual residents who obtain equity incentives such as stock options, stock appreciation rights, restricted stocks, and equity rewards (hereinafter referred to as equity incentives) comply with the Notice of the Ministry of Finance and the State Administration of Taxation on the Levy of Individual Income Tax on Individual Stock Option Income (Cai Shui [2005] No. 35) Notice of the Ministry of Finance and the State Administration of Taxation on Issues Related to the Levy of Individual Income Tax on Income from Stock Appreciation Rights and Restricted Stocks (Cai Shui [2009] No. 5), Article 4 of the Notice of the Ministry of Finance and the State Administration of Taxation on Promoting the Implementation of Tax Pilot Policies related to National Independent Innovation Demonstration Zones Nationwide (Cai Shui [2015] No. 116) The relevant conditions stipulated in Article 4 (1) of the "Notice of the Ministry of Finance and the State Administration of Taxation on Improving the Income Tax Policies related to Equity Incentives and Technology Investment" (Cai Shui [2016] No. 101) shall not be included in the comprehensive income of the current year, and the comprehensive income tax rate table shall be applied separately for the full amount to calculate tax payment. |
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