Announcement of the State Administration of Taxation on the Publication of Measures for the Administration of Individual Income Tax Deduction Declaration (Trial Implementation)

In order to implement the newly revised Personal Income Tax Law of the People's Republic of China and its implementing regulations, the State Administration of Taxation has formulated the Measures for the Administration of Deduction and Declaration of Personal Income Tax (for trial implementation), which is now promulgated and will come into effect on January 1, 2019.

I hereby announce.

Annex: Individual Income Tax Rate Table and Pre-deduction Rate Table

State Administration of Taxation

December 21, 2018

Measures for the Administration of Deduction and Declaration of Individual Income Tax (Trial Implementation)

Article 1 These Measures are formulated in accordance with the provisions of the Personal Income Tax Law of the People's Republic of China and its implementing regulations, the Tax Collection and Administration Law of the People's Republic of China and its implementing rules in order to regulate the withholding and declaration of individual income tax and safeguard the legitimate rights and interests of taxpayers and withholding agents.

Article 2 A withholding agent refers to a unit or individual that pays income to an individual. The withholding agent shall handle the declaration of full withholding of the whole staff according to law.

Full-time withholding declaration means that withholding agents shall, within 15 days of the next month of withholding tax, report to the competent tax authorities the relevant information of all individuals who have paid income, the amount of income paid, the items and amounts deducted, the specific amount and total amount of withholding tax and other relevant tax-related information.

Article 3 The withholding agent shall pay the tax withheld or withheld monthly or each time to the State Treasury within 15 days of the next month and submit the Individual Income Tax withholding Declaration to the tax authorities.

Article 4 The taxable income declared by withholding the full amount of individual income tax includes:

Article 5 When withholding agents first pay income to taxpayers, they shall fill in the Basic Information Form of Individual Income Tax (Form A) according to the basic information such as taxpayer identification number provided by taxpayers, and submit it it to the tax authorities at the time of withholding declaration next month.

The withholding agent shall report to the tax authorities the changes in the relevant basic information reported to the taxpayer the following month when withholding the declaration.

Article 6 When a withholding agent pays wages and salary income to an individual resident, it shall calculate the withholding tax according to the accumulative withholding method and make the withholding declaration monthly.

The accumulative withholding method refers to the method of withholding tax withholding by the withholding agent in a tax year, when the taxpayer withholds tax withholding in advance, the amount of tax payable in advance shall be the amount of tax withheld from the accumulated income of the taxpayer's wages and salaries up to the current month, minus the cumulative tax-exempt income, the cumulative deduction expenses, the cumulative special deduction, the cumulative additional deduction and other deductions determined by law. With the personal income tax withholding rate table 1 (see annex), the cumulative amount of withholding tax should be calculated, and then the cumulative amount of tax deduction and exemption and the cumulative amount of withholding tax withheld, the remaining amount is the amount of withholding tax withheld in the current period. When the balance is negative, no tax refund will be granted for the time being. When the balance is still negative after the end of the tax year, the taxpayer shall settle and pay the tax through the annual settlement of the comprehensive income, and the tax shall be refunded more or less.

Article 7 Where an individual resident provides relevant information to the withholding agent and requests special additional deductions in accordance with the law, the withholding agent shall deduct the monthly tax withheld from the income of wages and salaries in accordance with the provisions, and shall not refuse to do so.

Article 8 When a withholding agent pays income from remuneration for services, contributions and royalties to an individual resident, it shall withhold advance tax in succession or on a monthly basis in accordance with the following methods:

Article 9 When a withholding agent pays wages, salaries, remuneration for services, remuneration for contributions and royalties to non-resident individuals, he shall withhold taxes monthly or in succession according to the following methods:

Article 10 When a withholding agent pays interest, dividends or dividends, rents of property, transfers of property or accidental income, tax shall be withheld on time or on a monthly basis in accordance with the law.

Article 11 Income from remuneration for services, contributions and royalties shall belong to one-time income, which shall be earned once; income from the same project shall be earned once in a month.

Article 12 Where a taxpayer needs to enjoy the treatment of a tax agreement, he shall voluntarily submit relevant information and information to the withholding agent when he obtains the taxable income, and when withholding the tax on his behalf, he shall handle the matter in accordance with the relevant measures for the treatment of a tax agreement.

Article 13 Withdrawal agents who pay wages and salaries shall, within two months after the end of the year, provide taxpayers with information on their personal income and tax withholding. Where the taxpayer needs to provide the above information in the middle of the year, the withholding agent shall provide it.

Article 14 A withholding agent shall calculate taxes and make withholding declarations according to the information provided by the taxpayer, and shall not alter the information provided by the taxpayer without authorization.

Article 15 The "Information Form for Special Additional Deductions of Individual Income Tax" provided by withholding agents to taxpayers shall be properly kept for reference in accordance with the relevant provisions.

Article 16 A withholding agent shall keep confidential the relevant tax-related information and information such as special additional deductions submitted by taxpayers according to law.

Article 17 The withholding agent shall pay 2% annual handling fee for the tax withheld in accordance with the regulations. It does not include taxes that tax authorities, judicial organs, etc. check or order to make up for.

The withholding fees collected by withholding agents can be used to enhance the ability to handle taxes and to reward tax personnel.

Article 18 The withholding agent shall perform the obligation of withholding and withholding according to law, and the taxpayer shall not refuse to do so. If the taxpayer refuses, the withholding agent shall report to the tax authorities in a timely manner.

Article 19 Where a withholding agent fails to submit information and information to the tax authorities in accordance with the provisions, fails to provide information to the taxpayers in accordance with the provisions of the Tax Administration Law of the People's Republic of China and other relevant laws and administrative regulations, such as special additional deductions for false deductions, withholding or underpaying tax withholding, borrowing or fraudulent use of the identity of others, etc.

Article 20 The relevant forms and forms of these Measures shall be separately formulated and promulgated by the State Administration of Taxation.

Article 21 These Measures shall come into force as of January 1, 2019. The Circular of the State Administration of Taxation on the Issuance of Interim Measures for the Administration of Deduction and Declaration of Personal Income Tax in Full Amount (State Tax Issue No. 205) shall be repealed at the same time.

Original title: State Administration of Taxation: Measures for the Administration of Individual Income Tax Deduction and Declaration (Trial Implementation). Announcement Source: State Administration of Taxation Website