|
Q:
|
Is individual income applicable to lottery income?
|
|
A:
|
According to the 6th Article in the Individual Income Tax Law, IIT is applicable to following cases: occasional income, refers to individual gets income from prizes, lottery, and other events have occasional nature. IIT should be applied on any occasional income. With reference to other regulations, following adjustment are made as: for individual sports lottery income less than RMB10,000 at once, IIT is not applicable; for exceeding RMB10,000, IIT will be applicable base on the total income amount.
|
Q:
|
Does it necessary to compute rent income into VAT excluded amount to compose IIT base?
|
A:
|
According to related regulations, the IIT base for rent income does not including value-added tax part. That is, the tax deductable items for IIT excludes VAT of the rent. For personal rental transfer, both the rent and VAT paid to the landlord (or agent) in the process is deductable for the transferor.
|
Q:
|
Is IIT applicable to lump-sum compensation paid to departured employees?
|
A:
|
According to related regulations, individual income generated from lump-sum compensation paid by former employer as a mean of economical compensation, life support subsidy or other kind of subsidies, shall be free from IIT for the part within 3 times the local average salary in the past year; for the part exceeding, rather than compose part of annual comprehensive income, it should be IIT taxable calculated base on its particular tax table.
According to a relevant regulation in Shenzhen, the IIT tax-free threshold in Shenzhen shall be RMB383,271 (including this amount) since the 1st June 2020. Any amount above shall be subject to IIT with relevant regulations.
|
Q:
|
Is IIT exemptible for stock transfer of listed companies by non-residents?
|
A:
|
According a related Notice, individual transfer of stock of a listed company shall continue to be free from IIT.
This particular Notice did not draw extinguish between residents and non-residents. Thus, should be applicable to both.
|
Q:
|
How to claim or pay IIT for workers in a non-local company performing tasks in Shenzhen?
|
A:
|
According to a Circular of SAT, when construction (including construction building, facilitating, maintenance, decoration and other major engineering work) undertaking companies, units or individuals paying salaries to workers, the withholding obligator shall claim IIT to assigned competent tax authorities, fulfill IIT withholding and payment obligations as required by law.
Meantime, according to a Circular of Shenzhen Administration of Taxation, any construction projects fit the following circumstances, shall pay IIT of 0.2% of the project income:
Companies do not have accounting ledger as required by regulations;
Companies have accounting ledger, however, journal entries is in disorder, vouchers, invoices or other proofing document are missing, or incomplete. Resulting challenges in inspection and investigations.
Companies have not withheld or paid taxes required by law and regulations, or took leeway from tax authority’s instructions.
|
FAQ
