|
| The amount of monthly taxable individual income from wages and salaries will be lifted up to RMB 2,000.00 from RMB 1,600.00 from March 1 |
|
02-22-2008 |
|
The Decision of the Standing Committee of the National People's Congress on Amending the Law of the People's Republic of China on Individual Income Tax， which was adopted at the 31st Session of the Standing Committee of the Tenth National People's Congress of the People's Republic of China on December 29， 2007， lifted the amount of monthly taxable individual income from wages and salaries up to RMB 2，000.00 from RMB 1，600.00 and shall come into force as of March 1， 2008.
In order to carry out and implement the revised Individual Income Tax Law， the State Administration of Taxation （SAT） specially issued the circular on questions concerning links of policies on taxable individual income from wages and salaries. The circular explains that "shall come into force as of March 1， 2008" means that from March 1， 2008 （inclusive）， the tax payable for actually acquired monthly income from wages and salaries by a taxpayer will be computed in accordance with the deductable standard of RMB 2，000.00； the tax payable for actually acquired monthly income from wages and salaries by a taxpayer before March 1， 2008， no matter whether the tax money is paid to the state treasure after March 1， 2008， will all be computed in accordance with the deductable standard of RMB 1，600.00.
What the circular highlights is the time when the taxpayer actually acquires his/her wages and salaries instead of the period the taxpayer's acquired wages and salaries for， contributing to the diversity and flexibility that our domestic units pay the monthly wages and salaries， and conforming with the principle that the tax payable for the income of wages and salaries is turned in on a monthly basis.
At present， our domestic units do not pay wages and salaries on a uniformed date： some units pay the wages and salaries at the beginning of this month， some units pay the wages and salaries at the end of a month， some units pay last month's wages and salaries at the beginning of this month， and some units pay next month's wages and salaries at the end of this month. Besides， since the units can adjust the payment time， there exists great flexibility. It applies to all the taxpayers to turn in the taxes payable for the incomes from wages and salaries on a monthly basis and to judge whether the taxes payable for the incomes should be in accordance with the deductable standard of RMB 2，000.00 by the time when the income from wages and salaries is actually acquired， bearing the principle of equality to all the taxpayers.
In addition， it helps the taxpayers to balance their tax burdens to judge whether the taxes payable for the incomes should be in accordance with the deductable standard of RMB 2，000.00 by the time when the income from wages and salaries is actually acquired. For example， if a unit defer the payment of wages and salaries of February to March， though it applies the deductable standard of RMB 2，000.00， yet the payment of taxpayers' wages and salaries of March should be accordingly deferred to April （the rest can be done in the same manner）， or the taxpayers can get the wages and salaries of February and March together in March. In accordance with the Individual Income Tax Law， if so， there should be the computation of tax payable for the sum of all the wages and salaries， and this will add to taxpayers' tax burdens in reality. |
|
|
|
|
