The Ministry of Finance and the State Administration of Taxation recently issued the "Announcement on Individuals' Income Taxable Income Taxes Applicable to Individual Income Taxes". The announcement clarified the applicable tax policies including the provision of guarantee income, income from property receipts and other related income. Individuals provide guarantees for units or others to earn income, and calculate personal income tax according to the “accidental income” item.
In addition, if the owner of the property rights grants the property rights of the house to others free of charge, the recipient will receive the personal income tax according to the “accidental income” item according to the income received by the recipient. If the following circumstances are met, the individual income tax will not be levied on the parties: the owner of the property rights will give the property rights to the spouse, parents, children, grandparents, grandparents, grandchildren, grandchildren, brothers and sisters free of charge; Providing a supporter or a supporter who is directly responsible for supporting or supporting the property; the owner of the property right of the house dies and obtains the legal heir, the heir to the will or the bequest of the property right.
The announcement also clarifies that in the business promotion, advertising and other activities, the company randomly presents gifts to individuals other than the unit (including the network red envelope, the same below), and the company is outside the unit in the annual meeting, symposium, celebrations and other activities. Individual gifts, personal gift income, according to the "accidental income" project calculated personal income tax, except for gifts, vouchers, vouchers, coupons and other gifts that are given by the company with price discount or discount.
In addition, the pension income of the tax deferred commercial pension insurance received by the individual, 25% of which is exempted from tax, and the remaining 75% is calculated according to the 10% proportional rate, and the tax is included in the “salary, salary income” item. After the insurance institution withholds and pays the payment, the full-deduction of the full-deduction of the employee shall be filed at the location where the individual purchases the tax-deferred pension insurance.
It is reported that before the revision of the Individual Income Tax Law in 2018, there are ten policies for tax collection in accordance with “other income”. After the revision of the Individual Income Tax Law in 2018, the “Other Income” project was cancelled, and the relevant policy documents for taxation under the “Other Income” project of the original tax law need to be adjusted accordingly. Therefore, in order to implement the new tax law, the project adjusts the applicable taxable income items for the relevant income taxed under the original tax law according to the “other income” project, and will be implemented from January 1, 2019.
The relevant person in charge of the Department of Taxation of the Ministry of Finance pointed out that part of the income originally taxed under the "other income" project has a certain accidental nature, and the announcement has adjusted it to tax according to the "accidental income" project. The applicable tax rate for accidental income is 20%. The original “other income” tax rate is the same, and the taxpayer’s tax burden remains unchanged.