Decision of the State Council on the Revision of the Implementing Regulations of the Individual Income Tax Law of the People's Republic of China

Decision of the State Council on the Revision of the Implementing Regulations of the Individual Income Tax Law of the People's Republic of China

Order of the State Council [2005] No. 452

December 19, 2005

The Decision of the State Council on the Revision of the Implementing Regulations of the Individual Income Tax Law of the People's Republic of China is hereby promulgated, and shall be implemented as of January 1, 2006.

Premier: Wen Jiabao

Appendix: Decision of the State Council on the Revision of the Implementing Regulations of the Individual Income Tax Law of the People's Republic of China

The State council has decided to modify the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China as follows:
　
Article 1 Article 13 shall be modified to read as follows: "For the purposes of item (3) of Article 4 of the Tax Law, the subsidies and allowances paid in accordance with the uniform regulations of the state shall be defined as special government subsidies, the subsidies for CAS members and the subsidies for experienced CAS members issued in accordance with State Council regulations and allowances and subsidies that are exempt from individual income tax by the regulations of the State Council."
　
Article 2 Article 18 shall be modified to read as follows: "For the purposes of item (3) of the first paragraph of Article 6 of the Tax Law, the term "the gross income in a tax year' shall be defined as the share of the operating profit or the income of a wage or salary nature derived by the taxpayer according to the contract for the contracted or leased operation and the term "deduction of necessary expenses" shall be defined as a monthly deduction of CNY1,600."
　
Article 3 An additional article, Article 25, shall be added and shall read as follows: "According to state regulations, the basic pension insurance, basic medical insurance, unemployment insurance and housing fund paid by an entity for an individual or paid independently by the individual are allowed to be deducted from the individual income tax."
　
Article 4 Article 26 shall be amended into Article 27 and shall read as follows: "For the purposes of the third paragraph of Article 6 of the Tax Law, the term "additional deductions for expenses" shall be defined as a monthly deduction for expenses in the amount specified in Article 29 hereof in addition to the deduction for expenses of CNY1,600."
　
Article 5 Article 35 shall be amended into Article 36 and shall read as follows: "Taxpayers must file tax returns with the tax authorities-in-charge in line with the relevant regulations under any of the following circumstances:
1.
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