The newly revised regulations for the implementation of the individual income tax law of the people's Republic of China (hereinafter referred to as the new implementation regulations) has been signed by Premier Li Keqiang and promulgated by the State Council. This is the fourth revision of the regulations on the implementation of the individual income tax law, seven years after the last revision. It is not difficult to find the following characteristics after reading the new implementation regulations carefully
1、 The provisions are further concise and easy to understand
There are 48 articles in the current implementation regulations and the revised draft published before, while there are only 36 new implementation regulations, which is reduced by a quarter in terms of length. However, the contents of the new individual income tax law increase or change, and all the norms required for the implementation of the new individual income tax law are also involved. And the text of the new implementation regulations is easy to understand, concise and rigorous.
2、 It reflects the convergence of the new and old individual income tax laws
The new individual income tax law has adjusted the standard of individual resident identification from having lived in China for one year to 183 days. In order to reflect the national strategy of further opening up, Article 4 of the new implementation regulations stipulates that if an individual who has no domicile in China has resided in China for 183 days in a continuous period of less than six years, his income from sources outside China and paid by overseas units or individuals shall be exempted from individual income tax upon filing with the competent tax authorities. It is also stipulated that if a person leaves the country for more than 30 days in any year in which he has resided in China for 183 days in total, his continuous years of residence in China for 183 days shall be counted again. It not only protects the national rights and interests, but also dispels the concerns of overseas people to engage in production and business activities in China, and helps to attract talents from all walks of life.
3、 The detailed provisions and operational norms of the new individual income tax law are clarified
The new implementation regulations specify the new contents of the new individual income tax law, such as:
——The concept of operating income is no longer limited to individual businesses, but the investors of sole proprietorship enterprises, individual partners of partnership enterprises, contractors and lessees are added;
——The other deductions in Item 1 of Article 6 of the new individual income tax law are clarified, which include the payment of enterprise annuity and occupational annuity in line with the state regulations, the expenses of individual purchasing commercial health insurance and tax deferred commercial endowment insurance in line with the state regulations, and other items that can be deducted according to the regulations of the State Council;
——According to the provisions of the new individual income tax law on the annual calculation of comprehensive income, the content of final settlement is added, and four situations in which comprehensive income needs to be settled are clarified.
4、 Safeguard the rights and interests of taxpayers and strengthen the service of tax department
In the past, the tax law emphasized the obligation of the taxpayer and less reflected the rights and interests of the taxpayer. The new individual income tax law and the new implementation regulations have further strengthened the protection of the taxpayer's rights and interests in addition to replacing the "taxpayer" with the concept of "taxpayer". For example, Article 31 of the new implementation regulations stipulates that if there is an error in the final settlement information provided by a taxpayer when applying for tax refund, the tax authorities shall inform the taxpayer to make corrections. If the taxpayer corrects, the tax authorities shall promptly handle the tax refund; if the withholding agent fails to deliver the tax withheld into the Treasury, it shall not affect the taxpayer to apply for tax refund in accordance with the provisions, and the tax authorities shall rely on the relevant information provided by the taxpayer Materials for tax refund. This makes the tax law no longer cold, but humane. Sun Gang, Professor of China Academy of financial Sciences