According to the news on the official website of the State Administration of Taxation on the 20th, the State Administration of Taxation issued the "Announcement on Several Issues Concerning the Full Implementation of the New Individual Income Tax Law on Several Issues Concerning the Convergence of Collection and Management" (hereinafter referred to as the "Announcement"), which clarifies the relevant collection and management operation methods for the urgent implementation of the 2019 annual wages, salaries, labor remuneration, author's remuneration, royalties, individual income tax resident individuals, withholding and prepayment, and non-resident individuals.
Infographic
The State Administration of Taxation said that the newly revised Individual Income Tax Law of the People's Republic of China (hereinafter referred to as the "New Individual Income Tax Law") will be formally implemented on January 1, 2019. In order to do a good job in the conversion of the old and new tax systems, to ensure that taxpayers and withholding agents can grasp the caliber of implementation in a timely manner, perform relevant rights and obligations, and ensure a smooth transition between the old and new tax systems, the Announcement was promulgated.
According to reports, the "Announcement" determines the calculation method for individual income tax withholding income from wages and salaries, income from labor remuneration, income from remuneration from authors' remuneration, and income from royalties. In order to facilitate the unit to adjust the relevant financial software in a timely manner and pay the wages to the employees on schedule, the Announcement first clarifies the calculation method, declaration form and submission information of the individual income tax withholding of the above income.
The Announcement clarifies the method of withholding and prepayment for individual residents. Individual income tax on the income of resident individuals' wages and salaries shall be withheld and prepaid by the cumulative withholding method on a daily basis; individual income tax on income from labor remuneration, income from authors' remuneration, and royalties shall be withheld and withheld by basically shifting the current provisions; and non-resident individuals shall calculate and withhold personal income tax in accordance with the provisions of the tax law.
At the same time, due to the difference between the calculation method of the amount of individual income tax withheld and withheld by the comprehensive income of the resident and the tax payable by the annual comprehensive income of the resident, the Announcement also clarifies the difference between the withholding tax of the resident individual and the annual tax payable, and after the end of the year, the tax can be clearly declared through the comprehensive income remittance, and the tax will be refunded more and less supplemented. The specific withholding tax methods are:
The Announcement also clarifies the withholding method for non-resident individuals. When the withholding agent pays wages and salaries, labor remuneration income, author's remuneration income and royalty income to non-resident individuals, the individual income tax shall be withheld and paid on a monthly or sub-monthly basis according to the following methods: the wage and salary income of the non-resident individual shall be taxable income after deducting the expenses of 5,000 yuan from the monthly income; the income from labor remuneration, the income from the author's remuneration and the income from royalties shall be taxable with the amount of each income as the taxable income, and the monthly tax payable after the monthly conversion of the non-resident individual tax rate table shall be applied.
The Announcement shall come into force on 1 January 2019.
Attached: Individual income tax rate table and withholding rate table
