Individual Income Tax Law of the People's Republic of China (Amended in 2018)

Individual Income Tax Law of the People's Republic of China (Amended in 2018)

Order of the President of the People's Republic of China No.9

August 31, 2018

(Adopted by the 3rd Session of the Fifth National People's Congress on September 10, 1980;
amended for the first time in accordance with the Decision on Amending the Individual Income Tax Law of the People's Republic of China adopted at the 4th Session of the Standing Committee of the Eighth National People's Congress on October 31, 1993;
amended for the second time in accordance with the Decision on Amending the Individual Income Tax Law of the People's Republic of China adopted at the 11th Session of the Standing Committee of the 9th National People's Congress on August 30, 1999;
amended for the third time in accordance with the Decision on Amending the Individual Income Tax Law of the People's Republic of China adopted at the 18th Session of the Standing Committee of the Tenth National People's Congress on October 27, 2005;
amended for the fourth time in accordance with the Decision on Amending the Individual Income Tax Law of the People's Republic of China adopted at the 28th Session of the Standing Committee of the 10th National People's Congress on June 29, 2007;
amended for the fifth time in accordance with the Decision on Amending the Individual Income Tax Law of the People's Republic of China adopted at the 31st Session of the Standing Committee of the 10th National People's Congress on December 29, 2007;
amended for the sixth time in accordance with the Decision on Amending the Individual Income Tax Law of the People's Republic of China adopted at the 31st Session of the Standing Committee of the 10th National People's Congress on June 30, 2011;
amended for the seventh time in accordance with the Decision on Amending the Individual Income Tax Law of the People's Republic of China adopted at the 5th Session of the Standing Committee of the 13th National People's Congress on August 31, 2018.)

Article 1 Individuals who have a domicile in China or individuals who do not have a domicile in China but have resided in China for an aggregate of 183 days or more within a single tax year shall be deemed as resident individuals. Income derived by resident individuals from inside and outside China shall be subject to individual income tax pursuant to the provisions of this Law.
Individuals who do not have a domicile in China and have not resided in China or individuals who do not have a domicile in China but have resided in China for less than 183 days in aggregate within a tax year shall be deemed as non-resident individuals. Income derived by non-resident individuals from China shall be subject to individual income tax under this Law.
A tax year shall start from January 1 and end on December 31 of a calendar year.
(Relevant articles: Practical materials 2 Legislation 1)

Article 2 The following income of an individual shall be subject to individual income tax:
1. Income from wages and salaries;
2. Income from remuneration for personal services;
3. Income from author's remuneration;
4. Income from royalties;
5. Income from business operation;
6. Income from interest, dividends and bonuses;
7. Income from lease of property;
8. Income from transfer of property; and
9. Incidental income.
For income listed in items 1 to 4 of the preceding paragraph (hereinafter referred to as the "consolidated income"), individual income tax shall be computed in a consolidated manner based on tax year for resident individuals; and shall be computed on a monthly basis or based on each income item under each category for non-resident individuals. For income listed in items 5 to 9 of the preceding paragraph obtained by taxpayers, individual income tax shall be computed separately under this Law.
(Relevant articles: Legislation 1)

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