To Give Gifts To Individuals Should Be Deducted According To The Circumstances.

The Ministry of Finance and the State Administration of Taxation recently issued a notice that according to the relevant provisions of the People's Republic of China personal income tax law and its implementing regulations, enterprises and units (including enterprises, public institutions, social organizations, individual proprietorship enterprises, partnership enterprises and individual businesses and so on, hereinafter referred to as enterprises), in the marketing activities, offer cash, coupons, articles and services to individuals (hereinafter referred to as "gifts") in the form of discount discounts, gifts and raffle tickets. The following personal income tax issues are hereby notified as follows:

First, enterprises in

1. enterprises sell to individuals through price discount and discount.

2. enterprises give gifts to individuals when they sell goods (products) and provide services. For example, communication enterprises pay personal calls to mobile phones, pay for Internet access, or purchase phone calls to give mobile phones.

3., enterprises should receive feedback from consumers according to their consumption points to a certain amount of accumulated consumption.

Two. An enterprise giving gifts to individuals belongs to one of the following circumstances, and the individual who has obtained the proceeds shall pay according to law.

1. enterprises in the business promotion, advertising and other activities, random gifts to individuals outside the unit, the proceeds of personal gifts, in accordance with the "other income" project, the full application of 20% tax rate to pay personal income tax.

2. enterprises in the annual meeting, symposium, celebration and other activities to individuals outside the unit to give gifts, personal gain of the gift, in accordance with the "other income" project, the full application of 20% tax rate to pay personal income tax.

3. the enterprise will grant additional raffle to the customers who have accumulated a certain amount of consumption, and the personal income from the award will be paid in accordance with the "incidental income" project, and the personal income tax shall be paid at the full rate of 20%.

Three, the gift presented by an enterprise is a self produced product (service). The individual's taxable income is determined according to the market selling price of the product (service), and the purchased goods (services) determine the taxable income of the individual according to the actual purchase price of the commodity (service).

Four. This notice shall be implemented from the date of promulgation.

"The reply issued by the State Administration of Taxation on issues related to personal income tax" (tax Letter No. [2000]57), and the reply issued by the State Administration of Taxation on certain policy issues concerning personal income tax ([2002]629) are second at the same time abolished.