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Dalian finance and tax consultation -- individual income tax, exempt!The General Administration once again made it clear that the six items of income are not subject to individual income tax

2021-08-17

Since the No.74 document issued by the State Administration of Taxation of the Ministry of Finance in 2019, which abolished the six original taxation policies based on "other income", many users still have doubts: do you still need to pay individual income tax if you obtain the six items of income in the future?

Not long ago, the State Administration of Taxation once again made a special response to this problem. Let's have a look!

01

These six items are exempt from individual income tax

After the Announcement No. 74 of the State Administration of Taxation of the Ministry of Finance issued in 2019, six policy provisions of Taxation Based on "other income" have been abolished. Then, if the six items of income are obtained in the future, do you still need to pay individual income tax?

According to the development and changes of economy and society, the announcement abolished some policies of Taxation Based on "other income".It includes:

The first is the bonus paid by the banking sector to depositors in excess of the national interest rate and premium rate.

The second is to award honorary prizes to academicians of the Chinese Academy of Sciences with the interest of the foundation.

The third is the interest paid by the insurance company to the life insurance policyholders who have not been out of danger during the insurance period.

The fourth is the personal income of preferential treatment without compensation because of the insurance premium paid by the employer.

The fifth is the rebate income or transaction fee return income obtained by individual shareholders from securities companies.

The sixth is the liquidated damages paid by the real estate company to the buyer due to the termination of the commercial housing sales contract through negotiation.

Some of the above-mentioned six items of income do not exist because of the disappearance of business;Some do not need to pay individual income tax because their business is no longer within the scope of individual income tax.


[supplement] What adjustments have been made to the original "other income" tax items in the Announcement No. 74 of the Ministry of Finance in 2019?

Answer: one is to adjust part of the items originally taxed according to "other income" to "incidental income".Part of the income originally taxed according to the item of "other income" has the accidental nature, which is adjusted to be taxed according to the item of "accidental income". The applicable tax rate of accidental income is 20%, which is the same as the original "other income" tax rate, and the tax burden of taxpayers remains unchanged.

The specific income adjusted to be taxed according to the item of "accidental income" includes:

1. The individual provides guarantee for the unit or others to obtain remuneration;

2. If the donated income obtained by the donee due to the donated house is in line with the provisions of Article 78 of the notice of the Ministry of Finance and the State Administration of Taxation on the personal income tax issues related to the donated houses for individuals (CS [2009] No. 78), the individual income tax shall not be levied on both parties, including: 1. The house property owner gives the house property right to his spouse, parents, children for freeGrandparents, grandparents, grandchildren, grandchildren, brothers and sisters; the second is that the house property owner gives the house property right free of charge to the foster or supporter who bears the direct maintenance or support obligation; the third is the legal successor, testamentary successor or legacy recipient who obtains the property right according to law after the death of the owner of the house property;

3. In business promotion, advertising and other activities, the enterprise presents gifts (including online red packets) to individuals outside the unit, and presents gifts to individuals outside the company in annual meetings, symposiums, celebrations and other activities, except for the consumption coupons, vouchers, coupons and other gifts given by enterprises with the nature of price discount or discount.

The second is to adjust the tax of pension income of deferred commercial endowment insurance from "other income" to "wage and salary income".The payment of tax deferred commercial endowment insurance mainly comes from comprehensive income such as wages and salaries. From the above point of view, most of the individual's commercial pension income is included in the comprehensive income tax. Therefore, the "announcement" adjusts the tax collected on the individual's pension income to the "wage and salary income" item included in the comprehensive income.It should be noted that the announcement does not change the tax burden of the pension income, that is, 25% of the commercial pension income received by individuals will be exempted from tax, and the remaining 75% will be calculated and paid individual income tax according to the proportional tax rate of 10%. The actual tax burden is still 7.5%, and the tax burden of taxpayers has not changed.

02

Personal income tax rate table

03

Most authoritative reply

Tax related treatment and accounting treatment of income tax return

Website of the State Administration of Taxation: the service charge obtained by enterprises for withholding and paying individual income tax belongs to the scope of value-added tax, which shall be levied according to the business auxiliary service brokerage agency service.

Is the handling charge of withholding and paying individual income tax returned by the enterprise used to reward the financial personnel or declaration personnel? Is it included in the consolidated account

Pay personal income tax on wages and salaries?

According to the notice of the Ministry of Finance and the State Administration of Taxation on some policy issues concerning individual income tax (Cai Shui Zi No. 20, 1994), the following income shall be exempted from individual income tax temporarily. (5) the withholding service fee obtained by individuals in handling the tax withholding procedures shall be subject to the provisions

2、 According to Article 17 of the announcement of the State Administration of Taxation on the promulgation of the administrative measures for withholding and declaration of individual income tax (for Trial Implementation) (Announcement No. 61 of the State Administration of Taxation in 2018), "... The withholding service fee received by the withholding agent can be used to improve the tax ability and reward the tax personnel.

Therefore, if the withholding service charge collected by the withholding agent rewards the tax personnel, the tax officer who obtains the reward is exempted from individual income tax.


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