File    No.: Caishui [2019] No.74
Issued by: Ministry of Finance,
                State Administration of Taxation,
Issue Date: June 13,2019



In order to implement the revised individual income tax law of the People's Republic of China and ensure policy coherence, the applicable individual income tax items of the taxable income obtained for by individuals are hereby announced as follows:

1.	Individual income tax shall be calculated and paid according to the item of "contingent income" if the individual obtains income by providing guarantee for the unit or other individuals.
2.	If the owner of the house property gives the house property to others without consideration, the recipient shall calculate and pay individual income tax according to the item of "contingent income". According to article 1 of the Notice of the State Administration of Taxation and the Ministry of Finance on Individual Income Tax Issues Related to Houses Donated to Individuals Without Consideration (Caishui [2009] no. 78), no individual income tax shall be levied on both parties if the following conditions are met:
	(1)	The owner of housing property gives the housing property without consideration to spouse, parents, children, grandparents, maternal grandparents, grandchildren, maternal grandchildren, brothers and sisters.
	(2)	The owner of house property gives the house property without consideration to the dependent or dependent who assumes direct support or maintenance obligation.
	(3)	The legal heirs, testamentary heirs or legatee who has acquired the house property upon the death of the owner of the house property. The taxable amount of the donated income mentioned in the preceding paragraph shall be calculated according to article 4 of the Notice of the State Administration of Taxation and the Ministry of Finance on Individual Income Tax Issues Related to Houses Donated to Individuals Without Consideration (Caishui [2009] no. 78).

3.	Enterprise gives random gifts (including network red packet, similarly hereinafter) to others outside the enterprise in advertising and other promotion activities, and enterprise gives gifts to others outside the enterprise in the annual meetings, conferences, celebrations and other activities,  the individuals who obtain the gift income shall calculate and pay individual income tax in accordance with the item of "contingent income", except the coupons or vouchers with the nature of price discount. The taxable amount of the gift income mentioned in the preceding paragraph shall be calculated in accordance with article 3 of the Notice of the State Administration of Taxation and the Ministry of Finance on Individual Income Tax Issues Related to Gifts Given by Enterprises in Promotion and Exhibition (Caisui [2011] no. 50).
4.	Individual, in accordance with the Notice of the State Administration of Taxation,  the Ministry of Finance, the Human Resources and Social Security Insurance Supervision and China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission on the Implementation of Deferred Individual Tax Model of Commercial Pension Insurance Pilot (Caishui [2018] no. 22), the individuals who obtain the income of tax deferred model of commercial pension insurance, 25% of this income is tax exemption, the individual income tax for remaining 75% shall be calculated and paid multiply by applicable tax rate of 10%. Insurance institutions need to withhold and declare the tax under the item of "income from wages and salaries" to the local tax bureau of insurance institutions.
5.	This announcement shall take effect from January 1, 2019.

This notice is hereby issued.

Ministry of Finance, State Administration of Taxation
June 13,2019