New Individual Income Tax 2019
The new Individual Income Tax (IIT) Law entered into force on January 1, 2019 stipulates that, in addition to the monthly personal allowance of 5,000 yuan and the special deduction of social insurance and housing fund, taxpayers can also enjoy 6 special additional deductions, which including children's education, continuing education, medical treatment for serious illness, interest on housing loans or rent on housing, as well as Support for the elderly. The computation of IIIT are listed as below:
一、Methods for Resident individual income tax withheld and prepaid
A. When the withholding agent pays wages and salaries to resident individual, monthly tax withholding in full amount for all the staff should be calculated according to the accumulative tax withheld and prepaid method. The specific formulas are as follows:
●The amount of tax withheld and prepaid in the current period = (cumulative taxable income for tax withheld and prepaid * withholding rate - quick deduction factor) - cumulative tax savings- cumulative tax paid.
●Cumulative taxable income for tax withheld and prepaid = cumulative income - cumulative income exempt from taxation - cumulative deducted expenses - cumulative special deduction - cumulative special additional deduction - cumulative other deductions determined by law.
Thereof: the cumulative deducted expenses shall be calculated by multiplying the amount of 5,000 yuan per month by the number of months in which the taxpayer has been employed in the entity in the current year up to this month.
●The following are the withholding rate and quick deduction factor
B. The withholding agent shall withhold the income from manuscripts and royalties to resident individual in advance on a time-by-time or monthly basis. The specific methods are as follows:
●Taxable income from manuscripts and royalties shall be the balance of income minus expenses. Thereof:
a. Income from manuscripts is reduced by 70%;
b. If the income does not exceed 4,000 yuan per time, the expense deduction shall be calculated at 800 yuan; if over 4,000 yuan per time, the deduction at 20% of the total income
●The 20% prepayment rate applicable to the income from manuscripts and royalties
●Tax withheld and prepaid for income from manuscripts and royalties = taxable income for tax withheld and prepaid * 20%
C. The withholding agent shall withhold the income from remuneration for services to resident individual in advance on a time-by-time or monthly basis. The specific methods are as follows:
●Taxable Income from remuneration for services shall be the balance of income minus expenses.
Thereof: If the income does not exceed 4,000 yuan per time, the expense deduction shall be calculated at 800 yuan; if over 4,000 yuan per time, the deduction at 20% of the total income
●Tax withheld and prepaid for income from remuneration for services = taxable income for tax withheld and prepaid * withholding rate - quick deduction factor
●Applicable to the following excess progressive withholding rates
二、Methods for Non-Resident individual income tax
A. When the withholding agent pays wages and salaries to non-resident individual, taxable income is the balance of monthly income minus monthly personal allowance of 5,000 yuan.
B. The withholding agent shall withhold the income from remuneration for services, manuscripts and royalties to non-resident individual on a time-by-time. Thereof: Expense shall be 20% of the income from remuneration for services, manuscripts and royalties Income from manuscripts is reduced by 70%
C. Tax payable for income from wages and salaries, remuneration for services, manuscripts and royalties = taxable income * tax rate - quick deduction factor
D. Applicable to the following monthly conversion of non-resident individual monthly tax rate table
Back：General taxpayers transfer to small-scale taxpayers
Next：Six special additional deductions for IIT
一、Methods for Resident individual income tax withheld and prepaid
A. When the withholding agent pays wages and salaries to resident individual, monthly tax withholding in full amount for all the staff should be calculated according to the accumulative tax withheld and prepaid method. The specific formulas are as follows:
●The amount of tax withheld and prepaid in the current period = (cumulative taxable income for tax withheld and prepaid * withholding rate - quick deduction factor) - cumulative tax savings- cumulative tax paid.
●Cumulative taxable income for tax withheld and prepaid = cumulative income - cumulative income exempt from taxation - cumulative deducted expenses - cumulative special deduction - cumulative special additional deduction - cumulative other deductions determined by law.
Thereof: the cumulative deducted expenses shall be calculated by multiplying the amount of 5,000 yuan per month by the number of months in which the taxpayer has been employed in the entity in the current year up to this month.
●The following are the withholding rate and quick deduction factor
IIT withholding rate table 1
Applicable to income from wages and salaries to resident individual,
Applicable to income from wages and salaries to resident individual,
| Level |
Cumulative taxable income for tax withheld and prepaid (RMB) |
withholding rate (%) | quick deduction factor |
| 1 | Up to and including 36,000 | 3 | 0 |
| 2 | Over 36,000 to 144,000 | 10 | 2520 |
| 3 | Over 144,000 to 300,000 | 20 | 16920 |
| 4 | Over 300,000 to 420,000 | 25 | 31920 |
| 5 | Over 420,000 to 660,000 | 30 | 52920 |
| 6 | Over 660,000 to 960,000 | 35 | 85920 |
| 7 | Over 960,000 | 45 | 181920 |
●Taxable income from manuscripts and royalties shall be the balance of income minus expenses. Thereof:
a. Income from manuscripts is reduced by 70%;
b. If the income does not exceed 4,000 yuan per time, the expense deduction shall be calculated at 800 yuan; if over 4,000 yuan per time, the deduction at 20% of the total income
●The 20% prepayment rate applicable to the income from manuscripts and royalties
●Tax withheld and prepaid for income from manuscripts and royalties = taxable income for tax withheld and prepaid * 20%
C. The withholding agent shall withhold the income from remuneration for services to resident individual in advance on a time-by-time or monthly basis. The specific methods are as follows:
●Taxable Income from remuneration for services shall be the balance of income minus expenses.
Thereof: If the income does not exceed 4,000 yuan per time, the expense deduction shall be calculated at 800 yuan; if over 4,000 yuan per time, the deduction at 20% of the total income
●Tax withheld and prepaid for income from remuneration for services = taxable income for tax withheld and prepaid * withholding rate - quick deduction factor
●Applicable to the following excess progressive withholding rates
IIT withholding rate table 2
Applicable for remuneration for services to resident individual,
Applicable for remuneration for services to resident individual,
| Level | taxable income for tax withheld and prepaid (RMB) | Withholding rate ( %) | Quick deduction factor |
| 1 | Up to and including 20,000 | 20 | 0 |
| 2 | Over 20,000 to 50,000 | 30 | 2000 |
| 3 | Over 50,000 | 40 | 7000 |
A. When the withholding agent pays wages and salaries to non-resident individual, taxable income is the balance of monthly income minus monthly personal allowance of 5,000 yuan.
B. The withholding agent shall withhold the income from remuneration for services, manuscripts and royalties to non-resident individual on a time-by-time. Thereof: Expense shall be 20% of the income from remuneration for services, manuscripts and royalties Income from manuscripts is reduced by 70%
C. Tax payable for income from wages and salaries, remuneration for services, manuscripts and royalties = taxable income * tax rate - quick deduction factor
D. Applicable to the following monthly conversion of non-resident individual monthly tax rate table
IIT rate table 3
Income from personal wages and salaries, remuneration for services, manuscripts and royalties of non-residents shall apply
Income from personal wages and salaries, remuneration for services, manuscripts and royalties of non-residents shall apply
| Level | Taxable income (RMB) | Tax rate (%) | Quick deduction factor |
| 1 | Up to and including 3,000 | 3 | 0 |
| 2 | Over 3,000 to 12,000 | 10 | 210 |
| 3 | Over 12,000 to 25,000 | 20 | 1410 |
| 4 | Over 25,000 to 35,000 | 25 | 2660 |
| 5 | Over 35,000 to 55,000 | 30 | 4410 |
| 6 | Over 55,000 to 80,000 | 35 | 7160 |
| 7 | Over 80,000 | 45 | 15160 |
Back：General taxpayers transfer to small-scale taxpayers
Next：Six special additional deductions for IIT
