Q:
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Should stock option, stock appreciation right, restricted shares, equity incentives be regarded as salary income and incorporated into comprehensive income?
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A:
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The above-mentioned equity incentives obtained by individuals is not required to be incorporated into the comprehensive income, which should be applied to comprehensive tax rate form in full amount to pay individual income tax. All the income should be combined if the individual obtains twice (or above) equity incentive within a tax year.
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Q:
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Should the enterprise annuities or occupational annuities received by the individual be regarded as salary income and incorporated into comprehensive income?
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A:
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If the individual reaches mandatory retirement age and receive enterprise annuities or occupational annuities according to relevant regulation, the income shall not be incorporated into the comprehensive income but should be applied to comprehensive tax rate form in full amount to pay individual income tax. The income received by month should be applied to monthly tax rate form; the income received by quarter should be divided by 3 and apply to monthly tax rate form; the income received by year should be applied to comprehensive tax rate form.
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Q:
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Should tax-deferred commercial pension insurance be regarded as salary income?
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A:
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The 25% of tax-deferred commercial pension insurance can enjoy tax exemption, the rest part of 75% need to pay individual income tax at 10% tax rate. The insurance company is obliged to withhold the insurance tax, the income is not required to be incorporated into comprehensive income and need to be declared in the city in which the institution who paid the insurance.
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Q:
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What terms and conditions are needed for 50% deduction of taxable salary income for cash bonus for transformation of scientist’s technological achievements?
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A:
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According to scientific and technological achievement transformation law in People’s Republic of China, starting from 1 July 2018, the cash bonus can enjoy 50% deduction as taxable salary income, which is from technological achievement transformation revenue and paid by the non-profit R&D institutions or university who established with government’s approvement. The cash bonus is required to be incorporated into comprehensive income to pay individual income tax.
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Q:
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If an insurance salesman (or insurance agent) get 2 times of income from one company, one is insurance commission and the other is work salary, should these 2 items be regarded as salary income?
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A:
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If an insurance salesman (or insurance agent) is hired by the same company and get insurance commission & work salary at the same time, the 2 kinds of income should be combined to pay individual income tax.
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Q:
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If the salary of December 2019 be paid in January 2020, will it be regarded as comprehensive income of 2020?
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A:
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Yes. The taxable income and deduction items for annual individual income tax declaration are the actual amount incurred in the current year, which should meet the prescribed standards.
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