Q:
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How should insurance salesmen and stockbrokers pre-pay individual income tax (IIT) for their commission income?
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A:
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For the commission income that insurance salesmen and stockbrokers obtained, withholding agent shall calculate their IIT by means of cumulative withholding method as following formula:
Current period IIT payable = (cumulative chargeable income × tax rate – quick calculation deduction figure) – cumulative exempt amount
Cumulative chargeable income = cumulative income – cumulative deduction of expenses – cumulative other deduction
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Q:
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When should a taxpayer declare and pay IIT for income from equity transfer?
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A:
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The taxpayer or his withholding agent shall declare to competent tax bureau by 15th of the following month in accordance with law.
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Q:
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The enterprise randomly gives gifts to individuals outside the organization during the event. What tax item is used for individual income tax on the income of gifts obtained by individuals?
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A:
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Where enterprises randomly present gifts to individuals outside the organization in business promotion, advertising and other activities, or enterprises present gifts to individuals outside the organization in annual meeting, informal discussion, ceremony and other activities, the income obtained from the gifts shall be taxed as ‘contingent income’ item. However, the consumer bonds, vouchers, coupons and other gifts with the nature of price discount are exceptions.
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Q:
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Is the severance pay for termination of labour contract subject to IIT?
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A:
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For the income of severance pay for termination of labour contract (including the economic compensation, living allowances and other allowances paid by employers), the part within 3 times of average salary of local employees in the year before is exempt from IIT; the part excess to 3 times shall not be combined to current year comprehensive income but separately calculate IIT using the comprehensive income tax rate table.
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Q:
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Is the interest obtained by an individual from the shareholder account of a securities company subject to individual income tax?
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A:
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The interest income obtained by an individual from the shareholder account of a securities company shall pay individual income tax as the ‘interest, dividend income’ item, the tax shall be withheld and paid by the securities company on behalf.
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FAQ
