Chapter 18 Tax law.ppt

Chapter 18 Tax law 1 Overview 2 Income tax 3 Turnover tax 4 Land appreciation tax 5 Taxation administration 1.3 Sources of law Sources of tax law 1.3.1 Unified taxation law 1.3.2 Income tax laws 1.3.3 Turnover tax laws 1.3.4 Land appreciation tax law 2.1 Individual income tax Fiscal residence and the source of the income when determining tax jurisdiction Individual having domicile in China or having resided in China for 1 year or more in absence of domicile shall pay tax for incomes sourced in and out of China Those not residing in China in absence of domicile or residing in China for less than 1 year in absence of the domicile shall pay tax only for the incomes sourced in China 2.1.2 Taxable incomes (1) wages and salaries (2) IICH’s incomes from production and business operation (3) incomes from contracting management or leasing management of enterprises or institutions (4) service remuneration (5) copyright royalty (6) royalty (7) incomes from interest, dividends and bonuses (8) incomes from property leasing (9) incomes from property transfer (10) accidental incomes (11) other incomes to be taxed depending upon the decision by the MOF 2.1.3 Tax rate Tax rate of individual income tax 2.1.4 Tax exemption and deduction awards in science, education, technology, culture, health, physical sports and environmental protection granted by provincial government, ministries or commissions under State Council or above and foreign organisation and international organisation (2) interest of bank savings, and interest of treasury bonds and financial bonds issued by the State (3) subsidies and allowances granted according uniform standard of the State (4) welfare money, survivors pensions and relief payment (5) insurance indemnities (6) military severance pay and demobilization pay for soldiers of the armed forces (7) severance pay, retirement salaries and life subsidies for retired cadres and staff granted in accordance with u