What Is an Individual Income Tax Return?

The personal income tax law is a general term for legal norms that regulate the social relations that occur between the collection and management of personal income tax between a taxation authority and a natural person (resident, non-resident). The personal income tax law is a legal provision on personal income tax. In China, when an individual's annual income exceeds a certain limit, a personal tax declaration must be made.

Tax declaration

The following individual incomes shall be subject to personal income tax:

(1) income from wages and salaries;

(2) Income from labor remuneration;

(3) income from manuscripts;

(4) income from royalties;

(5) operating income;

(6) Income from interest, dividends and dividends;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Residents' personal income from wages, salaries, labor remuneration, manuscript remuneration and royalties shall be withheld by the withholding agent on a monthly or one-time basis.

A taxpayer who meets the requirements for settlement and settlement shall handle settlement and settlement to the tax authority in charge of the place where the incumbent or hired unit is located from March 1 to June 30 of the year after the income is obtained. If there is no office or employed unit, it shall be handled by the competent tax authority in the place where the household registration is located or where he ordinarily resides.

Resident individuals' income from interest, dividends, dividends, property lease income, property transfer income, and accidental income shall be withheld by the withholding agent on a monthly or per-year basis. If the withholding agent fails to withhold tax, the taxpayer shall pay the tax to the competent tax authority before June 30 of the year after the income is obtained.

Owners of individual industrial and commercial households, investors in sole proprietorship enterprises, individual partners of partnership enterprises, individual contracting and leasing operators, and other individuals engaged in production and business activities shall obtain prepayment declarations and account settlement.

The taxpayer shall, within 15 days after the end of the month or quarter, apply for a prepayment tax declaration to the competent tax authority in the place where the operation and management is located. Before March 31 of the year after the income is obtained, it shall be subject to settlement and settlement with the competent tax authority in the place where the operation and management is located.

A resident individual who obtains income from outside China shall, within the year of March 1 to June 30 of the year after the income is obtained, apply for tax declaration to the competent taxation authority in the locality where the employee is employed or employed in China. If you do not have a position or employment unit in China, you should apply for tax declaration to the tax authority in charge of the place where your household registration is located or in China.

The taxable income obtained by a non-resident individual from within China shall be withheld by the withholding agent on a monthly or monthly basis. Non-resident individuals under any of the following circumstances shall apply for tax declaration:

If the withholding agent fails to withhold tax, the non-resident individual shall apply for tax declaration to the tax authority before June 30 of the year after the income is obtained.

If a non-resident individual obtains wages and salaries from two or more places in China, he / she shall file a tax declaration with the competent taxation authority of the place where he / she is employed or employed within 15 days of the next month.

1. The following personal income is exempt from personal income tax

(1) Science, education, technology, culture, health, sports, environmental protection and other bonuses issued by the provincial people's government, ministries and commissions of the State Council, and units above the People's Liberation Army, as well as foreign organizations and international organizations;

(2) Interest on government bonds and financial bonds issued by the state;

(3) Subsidies and allowances issued in accordance with unified national regulations;

(4) welfare fees, pensions and relief funds;

(5) Insurance compensation;

(6) Military transfer costs, demobilization costs, and retirement benefits;

(7) Settlement, resignation, basic pension or retirement, retirement, and retirement living allowances paid to cadres and employees in accordance with the unified state regulations;

(8) Income derived from diplomatic representatives, consular officials and other personnel of embassies and consulates of various countries in China that are exempt from tax in accordance with relevant laws;

(9) Tax-exempt income stipulated in international conventions and agreements signed by the Chinese government;

(10) Other tax-exempt income stipulated by the State Council.

The tenth tax exemption provision in the preceding paragraph shall be reported to the Standing Committee of the National People's Congress for the record.

(1) For salaries and salaries, taxable income shall be the balance of monthly income minus expenses of 5,000 yuan.

(two)

Taxpayers can adopt multiple flexible methods for tax declaration, such as filing on the website of the local tax authority, mailing it, or directly reporting to the tax office of the local tax authority, or adopting the Declaration in other ways.

Information required for declaration: According to the income, taxable amount, tax paid (deducted), deducted (deducted), payable (refunded) tax, etc. in a tax year, please complete and submit the "Individual Income Tax Declaration" Form (applicable to taxpayers with annual income of more than 120,000 yuan), individuals

If the taxpayer has difficulty in handling tax declaration or submitting withholding and payment, or collecting and paying tax report forms within the prescribed time limit, and needs to be extended, he shall submit a written application for extension to the competent tax authority within the prescribed time limit. Approval is processed within the time limit for approval. If the taxpayer is unable to complete the tax declaration or submit the tax withholding and payment report, the tax payment can be postponed due to force majeure; however, the taxpayer should report to the tax authority immediately after the force majeure situation is eliminated. The tax authorities shall find out the facts and approve them.

Legal liability for non-declaration of overdue time: According to regulations, if the taxpayer fails to handle tax declaration and submit tax information within the prescribed time limit, if the circumstances are serious, a fine of 2,000 yuan to 10,000 yuan may be imposed.

In addition, if the taxpayer does not file a tax declaration, which results in non-payment or underpayment of taxes, the tax authorities shall recover the non-payment or underpayment of taxes and late fees, and shall pay the percentage of non-payment or underpayment of taxes. A fine of 50 to 5 times.