State Council to Amend the "Individual Income Tax Regulation of PRC"

The State Council of PRC
Notice No. 452
19 December 2005

Starting from 01 January 2006, the above notice has been put into effect.

1. Exempt the IIT on allowance for China Academy of Sciences and China Academy of Engineering Academician.
2. The IIT deductible limited has been increased to RMB1600 for salaries earned from sub-contracting work and property rental.
3. The basic pension insurance, basic medical insurance, unemployment insurance and housing fund are allowed to deduct from IIT.
4. On top of the existing tax allowance bases (RMB1600), a further RMB3200 is allowed to be deducted for foreign taxpayer.
5. Taxpayer whose annual income exceed RMB120,000 should file to respective tax bureau within 3 months after the financial year-end date.

自2006年1月1日起施行《國務院關於修改〈中華人民共和國個人所得稅法實施條例〉的決定》。

一、 中國科學院和中國工程院院士津貼、資深院士津貼，免予徵收個人所得稅；
二、 企事業單位的承包經營、承租經營所得專案與工資、薪金所得專案費用扣除額調整到1600元；
三、 單位?個人繳付和個人繳付的基本養老保險費、基本醫療保險費、失業保險費和住房公積金，准予從個人的應納稅所得額中扣除；
四、 外籍人員的附加減除費用，在減除1600元的基礎上，再減除3200元費用；
五、 年所得12萬元以上的納稅義務人，在年度終了後3個月內到主管稅務機關辦理納稅申報；