1. Part Seven Individual Income Tax Accounting

2. What is Individual Income Tax? The marginal tax rate is the tax rate applied to each additional dollar of income. Higher-income families pay a larger percentage of their income in taxes.

3. Characteristics of personal income tax 1 Classified collection 2 progressive tax rate and tax rate and 3 expenses deduction from the simple, easy calculation 4 take withholding at source and self- declaration of payment method

4. Personal income tax liability of people Individual income tax obligations to pay taxes, refers to a domicile within the territory of China, or who has no domicile but in individuals who have resided for one year, and has no domicile and does not live or live less than one year but from China to obtain income personal. Including Chinese citizens, individual industrial and commercial businesses, foreign individuals, Hongkong, Macao, the Taiwan compatriots.

5. Personal income tax revenue target 1 wages, salary income 2 The individual industrial and commercial production, operating income 3 of the enterprises and institutions of contracting, leasing income 4 labor income 5 fee income 6 royalties

6. 7 interest, dividends, dividend income 8 income from lease of property The 9 transfer of property income 10 occasional income 11 other income

7. ( a ) wages, salary income Application of 5% - 45% of the nine levels of progressive tax rate. Individual income tax rates

8. Management Functions Management ’ s activities and responsibilities can be classified into the following three broad functions: Planning Directing Controlling

9. b) individual industrial and commercial production, operating income, for enterprises and institutions of contracting, leasing income, individual proprietorship, partnership enterprises operating income Application of 5% - 35% of the five levels of progressive tax rate.

10. c) remuneration from Application of the remuneration rate of 20%, according to the tax reduction of 30%, i.e. only a 70% tax. d) income from remuneration for personal services Income from remuneration for personal service application at a rate of 20%. On the labor remuneration income derived from an abnormal high ( the individual to obtain a labor remuneration, the amount of taxable income of over $20000 ), set in 20% tax rate on the basis of practice, plus tax. Labor remuneration income plus tax using excess progressive approach.

11. e) personal rental income Individual rental housing to obtain income has reduced 10% tax rate of personal income tax. f) interest income According to the July 20, 2007 the State Council issued the" on the revision ' of the savings deposit interest income personal income tax collection measures ' decisions", since August 15, 2007, the savings deposit interest income personal income tax at the reduced rate of 5%, executive. Since October 9, 2008, the savings deposit interest waiver to levy personal income tax.

12. g) Other income Income from royalties, income from lease of property, transfer of property income, dividends, dividend income, contingent income and other income applicable at a rate of 20%.

13. FINANCIAL ACCOUNTING Content of Reports  Pertains to entity as a whole and is highly aggregated (condensed).  Limited to double-entry accounting system and cost data.  Reporting standard is generally accepted accounting principles. Verification Process  Annual independent audit by certified public accountant. DIFFERENCES BETWEEN FINANCIAL AND MANAGERIAL ACCOUNTING

14. . Personal income tax is a tax based on the taxpayer 's taxable income, personal income minus the tax law to obtain the deductible items or the deductible amount after the balance. Our current individual income tax deduction take itemized certainty, classification, according to the different situation of different deduction method Personal income tax basis

15. China's personal income tax taken by the paying unit withholding at source and the taxpayer to declare the two collection methods. Individual Tax declaration

16. Individual income tax return preparation –1 monthly individual income tax return preparation In addition to a specific industry individual salary income, individual industrial and commercial household operating income and individual contracting and leasing operation income, other taxable items and tax taxpayer self-declaration, shall prepare monthly individual income tax return. 2 withholding individual income tax preparation Withholding agents to declare personal income tax, should fill in for withholding individual income tax.

17. Individual income tax accounting Company pays salary, pay individual income tax accounting Individual industrial and commercial household operating income tax personal income tax accounting Contracting, leasing income tax personal income tax accounting Personal income tax paid by the enterprises of other accounting

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