Notice on the application of personal income tax deduction fees and tax rates in the fourth quarter of 2018

Enterprises in the park

According to the "Revision of the Standing Committee of the National People's Congress" reviewed and approved at the Fifth Session of the Standing Committee of the 13th National People's Congress on Revision <Personal Income Tax Law of the People's Republic of China >The decision is hereby notified about the application of personal income tax deduction fees and tax rates for taxpayers in the fourth quarter of 2018:

1. Regarding the applicable deductions of fees and tax rates for wages and salary income

For taxpayers2018The actual salary and salary income obtained after October 1, 2018 (inclusive) shall be subject to a total of RMB 5,000 deduction fees. /Monthly execution，The taxable amount shall be calculated in accordance with the personal income tax rate table 1 attached to this notice.For taxpayersThe actual salary and salary income obtained before September 30, 2018 (inclusive) shall be subject to the provisions before the tax law amendment.

2. Regarding the tax method of production and operation income calculation of individual industrial and commercial owners, sole proprietors and partnership natural person investors, and contracting and leasing operators of enterprises and institutions

（1) The production and operation income obtained by individual industrial and commercial owners, sole proprietorships and partnership natural person investors, and contracting and leasing operators of enterprises and institutions in the fourth quarter of 2018,Deduction fee is RMB 5,000 /Monthly execution, the deduction fee in the first three quarters is RMB 3,500 /Monthly execution.

（II) For the production and operation income obtained by individual industrial and commercial owners, sole proprietorships and partnership natural person investors, and contracting and leasing operators of enterprises and institutions in 2018, the taxable income for the whole year shall be calculated separately for the tax amount to be paid for the first three quarters and the tax amount to be paid for the fourth quarter. The tax amount to be paid for the first three quarters shall be calculated according to the tax rate stipulated before the amendment of the Tax Law and the weight of the actual operating months in the first three quarters.The amount of tax to be paid for the fourth quarter shall be calculated based on the weights of the personal income tax rate table II attached to this notice (hereinafter referred to as the tax rate stipulated after the amendment of the Tax Law) and the actual operating month in the fourth quarter.Specific calculation method:

1、Calculation of monthly (quarterly) prepaid taxes.

Taxes to be paid in this period =Cumulative taxable amount - cumulative tax paid

Cumulative taxable amount =Taxes to be paid before October 1 +Taxes to be paid after October 1

Taxes to be paid before October 1 =（Cumulative taxable income ×Tax rates stipulated before the amendment of the Tax Law - the quick deduction number stipulated before the amendment of the Tax Law) ×10Number of actual operating months before month 1 ÷Cumulative actual operating months

Taxes to be paid after October 1=（Cumulative taxable income ×Tax rates stipulated after the amendment of the Tax Law - the quick deduction number stipulated after the amendment of the Tax Law) ×10The actual number of months after month 1 ÷Cumulative actual operating months

2、Calculation of annual reconciliation and clearing taxes.

Reimbursement amount of tax refund =Taxable for the whole year - cumulative tax paid

Taxables for the whole year =Taxes to be paid for the first three quarters +The fourth quarter tax amount is to be paid

Taxes to be paid for the first three quarters =（Taxable income for the whole year ×Tax rates stipulated before the amendment of the Tax Law - the quick deduction number stipulated before the amendment of the Tax Law) ×The actual number of months in the first three quarters ÷Number of actual operating months throughout the year

The fourth quarter tax amount is to be paid=（Taxable income for the whole year ×Tax rates stipulated after the amendment of the Tax Law - the quick deduction number stipulated after the amendment of the Tax Law) ×Number of actual operating months in the fourth quarter ÷Number of actual operating months throughout the year

3. "Notice of the Ministry of Finance and State Administration of Taxation on Adjusting the Deduction Standards for Personal Income Tax Fees for Natural Persons Investors of Sole Proprietorships and Partnerships for Individual Industrial and Commercial Owners"（Finance and Taxation [2011] No. 62)It will be abolished from October 1, 2018.

appendix:http://www.ctax.org.cn/sssw/fgsd/201809/t20180912_1080632.shtml

1.Personal Income Tax Rate Table 1 (Salary Income Applicable)

2.Personal Income Tax Rate Table 2 (Production and operation income of individual industrial and commercial households and the contracted and leased operation income of enterprises and institutions)