News Materials: A History Of The Development Of China'S Personal Income Tax

The amendment of the personal income tax law (Draft) has been revised and revised many times, and will be preliminarily examined at the twenty session of the Standing Committee of the eleven National People's Congress from 20 to 22 April. After combing the background data, we found that the personal income tax law was promulgated in September 1980. With the development of the economic and social situation, China has made several major adjustments to the personal income tax.

　　 China The history of personal income tax

In 1950, the government affairs office issued. New China tax system The programmatic document of the implementation of the national tax policy is mainly related to the income tax on wages and salaries and the income tax on deposit interest, but for various reasons, it has not been introduced.

In September 1980, the personal income tax law was officially promulgated. The object of the law includes Chinese citizens and expatriates in China. However, because of the higher exemption amount (800 yuan per month or monthly), and the income of domestic residents is generally large, most domestic residents are not within the scope of taxation.

In order to effectively regulate the income gap of members of the society, in January 1986, the State Council promulgated the Provisional Regulations on the income tax of individual industrial and commercial households in urban and rural areas, and promulgated the Provisional Regulations on personal income adjustment tax in September of the same year.

In 1994, China promulgated and implemented the new personal income tax law, and initially established a unified internal and external income tax system.

Subsequently, with the development and changes of the economic and social situation, the state made several major adjustments to the personal income tax:

In 1999, the personal income tax on savings deposits was resumed.

In 2006 and 2008, the standard of reducing the cost of wages and salaries was raised twice.

In 2007, the personal income tax rate of savings deposit interest rate was reduced from 20% to 5%.

The personal income tax on savings deposit interest is temporarily waiver in 2008.

Transfer to individuals in 2010 Listed company Income derived from restricted shares is subject to personal income tax.