Contingent Income
To implement the revised Individual Income Tax (IIT) Law of the People's Republic of China, the items，as of January 1, 2019， concerning taxable income obtained by individuals shall be calculated as following:
1. Individual income obtained by providing guarantees for entities or others shall be paid IIT according to the computation of Contingent income.
2. If the owner of housing property donates the property right of the house to another person free of charge, the donee shall pay IIT based on the computation of Contingent Income. But according to Article 1 of Caishui No. 78, 2009, if the following circumstances are satisfied, IIT shall not be levied on both parties:
a. The owner of housing property gives the property right of the house free to his /her spouse, parents, children, paternal grandparents, maternal grandparents, paternal grandchildren, maternal grandchildren. brothers and sisters;
b. The owner of housing property donates the property right of the house free of charge to the person who bears the obligation to bring up or support directly
c. Housing property right would be acquired by statutory successors, testamentary successor or legatee according to the law after the death of owner of housing property
Taxable income referred to in the preceding paragraph shall be calculated in accordance with Article 4 of Caishui [2009] 78.
3. In business propaganda, advertising and other activities, enterprises randomly give gifts to individuals other than their own entities’ (including network red envelopes, similarly hereinafter), as well as gifts to individuals other than their own units in annual meetings, symposiums, celebrations and other activities. The income from gifts obtained by individuals shall be paid IIT according to the calculation of Contingent Income, excluding the gifts such as consumption voucher, cash coupon, credit voucher, courtesy card with price discount or discount nature given by enterprises
Taxable income of gift referred to in the preceding paragraph shall be calculated in accordance with Article 3 of Caishui [2011] No. 50.
4. In accordance with the provisions of Caishui [2018] 22, individuals receive the pension income of tax-deferred commercial endowment insurance, of which 25% is exempted from tax, while 10% of the remaining 75% is computed to pay IIT. Tax shall be recorded to the item of Wages and Salaries.
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1. Individual income obtained by providing guarantees for entities or others shall be paid IIT according to the computation of Contingent income.
2. If the owner of housing property donates the property right of the house to another person free of charge, the donee shall pay IIT based on the computation of Contingent Income. But according to Article 1 of Caishui No. 78, 2009, if the following circumstances are satisfied, IIT shall not be levied on both parties:
a. The owner of housing property gives the property right of the house free to his /her spouse, parents, children, paternal grandparents, maternal grandparents, paternal grandchildren, maternal grandchildren. brothers and sisters;
b. The owner of housing property donates the property right of the house free of charge to the person who bears the obligation to bring up or support directly
c. Housing property right would be acquired by statutory successors, testamentary successor or legatee according to the law after the death of owner of housing property
Taxable income referred to in the preceding paragraph shall be calculated in accordance with Article 4 of Caishui [2009] 78.
3. In business propaganda, advertising and other activities, enterprises randomly give gifts to individuals other than their own entities’ (including network red envelopes, similarly hereinafter), as well as gifts to individuals other than their own units in annual meetings, symposiums, celebrations and other activities. The income from gifts obtained by individuals shall be paid IIT according to the calculation of Contingent Income, excluding the gifts such as consumption voucher, cash coupon, credit voucher, courtesy card with price discount or discount nature given by enterprises
Taxable income of gift referred to in the preceding paragraph shall be calculated in accordance with Article 3 of Caishui [2011] No. 50.
4. In accordance with the provisions of Caishui [2018] 22, individuals receive the pension income of tax-deferred commercial endowment insurance, of which 25% is exempted from tax, while 10% of the remaining 75% is computed to pay IIT. Tax shall be recorded to the item of Wages and Salaries.
Back：Handling fees from tax authorities
Next：Unemployment insurance refund in DG
