Law of the People's Republic of China on Individual Income Tax (Amended in 2005)

Law of the People's Republic of China on Individual Income Tax (Amended in 2005)

Order of the President [2005] No. 44

October 27, 2005

The Decision of the Standing Committee of the National People's Congress on the Revision of the Law of the People's Republic of China on Individual Income Tax, which was adopted at the 18th session of the Standing Committee of the 10th National People's Congress of the People's Republic of China on October 27, 2005, is hereby promulgated and shall be implemented as of January 1, 2006.

President of the People's Republic of China, Hu Jintao

Law of the People's Republic of China on Individual Income Tax (Revised in 2005)

(Adopted at the Third Session of the Fifth National People's Congress on September 10, 1980; amended for the first time pursuant to the Decision of the Fourth Session of the Standing Committee of the Eighth National People's Congress on Amending the Law of the People's Republic of China on Individual Income Tax on October 31, 1993; and amended for the second time pursuant to the Decision of the 11th Session of the Standing Committee of the Ninth National People's Congress on Amending the Law of the People's Republic of China on Individual Income Tax on August 30, 1999; amended for the third time pursuant to the Decision of the 18th Session of the Standing Committee of the Tenth National People's Congress on Amending the Law of the People's Republic of China on Individual Income Tax on October 27, 2005.)

Article 1 Any individual who has a domicile within the territory of China or who has no domicile but has stayed within the territory of China for one year or longer shall pay individual income tax for any income obtained in and outside the territory of China according to the provisions of this Law.
Any individual who has no domicile and does not stay within the territory of China or who has no domicile but has stayed within the territory of China for less than one year shall pay individual income tax for any income obtained within the territory of China according to the provisions of this Law.

Article 2 The types of individual income listed below shall be subject to individual income tax:
1. wages and salaries;
2. income of individually-owned businesses from production and business operations;
3. income of enterprises and public-sector organizations from contracting or leasing;
4. labor remuneration;
5. author remuneration;
6. royalties;
7. interests, dividends and bonuses;
8. income from leasing of properties;
9. income from transfer of properties;
10. fortuitous income; and
11. any other types of income specified as taxable by the financial department of the State Council.

Article 3 Individual income tax rates:
1.
　　......