Implementing Regulations of the Individual Income Tax Law of the People's Republic of China (Revised in 2018)
Implementing Regulations of the Individual Income Tax Law of the People's Republic of China (Revised in 2018)
Implementing Regulations of the Individual Income Tax Law of the People's Republic of China (Revised in 2018)
Order of the State Council of the People's Republic of China No.707
December 18, 2018
The revised Implementing Regulations of the Individual Income Tax Law of the People's Republic of China are hereby issued with effect from January 1, 2019.
Li Keqiang, premier
Implementing Regulations of the Individual Income Tax Law of the People's Republic of China
(Issued by the Order of the State Council of the People's Republic of China No.142 dated January 28, 1994; revised for the first time under 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 dated December 19, 2005; revised for the second time under 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 dated February 18, 2008; revised for the third time under 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 dated July 19, 2011; and revised for the fourth times by the Order of the State Council of the People's Republic of China No.707 dated December 18, 2018)
Article 1 The Regulations are enacted in accordance with the Individual Income Tax Law of the People's Republic of China (the "Individual Income Tax Law").
Article 2 For the purpose of the Individual Income Tax Law, having "a domicile within the territory of China" shall mean habitually residing within the territory of China by reason of permanent residence, or family or economic interests; the "income derived from inside and outside China" shall mean income sourced within China and income sourced outside China.
Article 3 Unless otherwise stipulated by the finance or tax authority under the State Council, the following income shall be deemed as income sourced within China, regardless of whether or not it is paid within China:
1. income from remuneration for personal services provided within China by reason of tenure of office, employment, contractual performance, etc.;
2. income derived from lease of property to a lessee for use within China;
3. income derived from licensing of any rights for use within China;
4. income derived from transfer of immovable property or any other property located within China or from transfer conducted within China of any other property; and
5. income from interest, dividends and bonuses derived from any enterprise, public institution or other organization or individual resident within China.
Article 4 Individuals who do not have a domicile in China but have resided in China for not more than six consecutive years in each of which they resided in China for 183 days or more in aggregate shall be exempted from individual income tax for their income sourced outside China and paid by an overseas entity or individual, subject to record-filing with competent tax authorities; where individuals exited China for more than 30 days on a single trip in any year in which they resided in China for 183 days or more in aggregate, the consecutive years in each of which they resided in China for 183 days or more in aggregate shall be counted anew from zero.
Article 5 Individuals who do not have a domicile in China but have resided in China for not more than 90 days in aggregate in a tax year shall be exempted from individual income tax for that portion of their income sourced within China that is paid by an overseas employer and that is not borne by any institution or establishment of such overseas employer located in China.
Article 6 The scope of the individual income described in the Individual Income Tax Law shall be as follows:
1. "Income from wages and salaries" shall mean wages, salaries, bonuses, year-end bonuses, profit sharing, subsidies and allowances derived by individuals by reason of tenure of office or employment, and other income derived by individuals in relation to tenure of office or employment.
2. "Income from remuneration for personal services" shall mean income derived by individuals from engaging in design, decoration, installation, charting, laboratory testing, other testing, healthcare, legal, accounting, consulting, teaching, translation, copy editing, painting and calligraphy, carving and sculpting, film and television, sound recording, video recording, shows and concerts, performance, advertising, exhibition and technical services, introductory services, brokerage services, agency services and other personal services.
3. "Income from author's remuneration" shall mean income derived by individuals from publication of their works in books, newspapers, periodicals or other media forms.
4. "Income from royalties" shall mean income derived by individuals from granting rights to use patents, trademarks, copyrights, non-patented technology and other rights; income derived from granting rights to use copyrights shall not include income from author's remuneration.
5.
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Order of the State Council of the People's Republic of China No.707
December 18, 2018
The revised Implementing Regulations of the Individual Income Tax Law of the People's Republic of China are hereby issued with effect from January 1, 2019.
Li Keqiang, premier
Implementing Regulations of the Individual Income Tax Law of the People's Republic of China
(Issued by the Order of the State Council of the People's Republic of China No.142 dated January 28, 1994; revised for the first time under 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 dated December 19, 2005; revised for the second time under 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 dated February 18, 2008; revised for the third time under 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 dated July 19, 2011; and revised for the fourth times by the Order of the State Council of the People's Republic of China No.707 dated December 18, 2018)
Article 1 The Regulations are enacted in accordance with the Individual Income Tax Law of the People's Republic of China (the "Individual Income Tax Law").
Article 2 For the purpose of the Individual Income Tax Law, having "a domicile within the territory of China" shall mean habitually residing within the territory of China by reason of permanent residence, or family or economic interests; the "income derived from inside and outside China" shall mean income sourced within China and income sourced outside China.
Article 3 Unless otherwise stipulated by the finance or tax authority under the State Council, the following income shall be deemed as income sourced within China, regardless of whether or not it is paid within China:
1. income from remuneration for personal services provided within China by reason of tenure of office, employment, contractual performance, etc.;
2. income derived from lease of property to a lessee for use within China;
3. income derived from licensing of any rights for use within China;
4. income derived from transfer of immovable property or any other property located within China or from transfer conducted within China of any other property; and
5. income from interest, dividends and bonuses derived from any enterprise, public institution or other organization or individual resident within China.
Article 4 Individuals who do not have a domicile in China but have resided in China for not more than six consecutive years in each of which they resided in China for 183 days or more in aggregate shall be exempted from individual income tax for their income sourced outside China and paid by an overseas entity or individual, subject to record-filing with competent tax authorities; where individuals exited China for more than 30 days on a single trip in any year in which they resided in China for 183 days or more in aggregate, the consecutive years in each of which they resided in China for 183 days or more in aggregate shall be counted anew from zero.
Article 5 Individuals who do not have a domicile in China but have resided in China for not more than 90 days in aggregate in a tax year shall be exempted from individual income tax for that portion of their income sourced within China that is paid by an overseas employer and that is not borne by any institution or establishment of such overseas employer located in China.
Article 6 The scope of the individual income described in the Individual Income Tax Law shall be as follows:
1. "Income from wages and salaries" shall mean wages, salaries, bonuses, year-end bonuses, profit sharing, subsidies and allowances derived by individuals by reason of tenure of office or employment, and other income derived by individuals in relation to tenure of office or employment.
2. "Income from remuneration for personal services" shall mean income derived by individuals from engaging in design, decoration, installation, charting, laboratory testing, other testing, healthcare, legal, accounting, consulting, teaching, translation, copy editing, painting and calligraphy, carving and sculpting, film and television, sound recording, video recording, shows and concerts, performance, advertising, exhibition and technical services, introductory services, brokerage services, agency services and other personal services.
3. "Income from author's remuneration" shall mean income derived by individuals from publication of their works in books, newspapers, periodicals or other media forms.
4. "Income from royalties" shall mean income derived by individuals from granting rights to use patents, trademarks, copyrights, non-patented technology and other rights; income derived from granting rights to use copyrights shall not include income from author's remuneration.
5.
......