Preferential policies for personal income tax relief

Legal analysis: Personal income tax can be exempted in ten cases where personal income belongs to the law, and it can also be reduced or exempted if it belongs to the disabled, the elderly and martyrs or suffers heavy losses due to natural disasters.

Legal basis: Individual Income Tax Law of People's Republic of China (PRC).

Article 4 The following incomes shall be exempted from individual income tax:

(a) bonuses in science, education, technology, culture, health, sports, environmental protection, etc. Awarded by the provincial people's government, ministries and commissions of the State Council, units of the People's Liberation Army of China at or above the military level, foreign organizations and international organizations;

(2) Interest on government bonds and financial bonds issued by the state;

(3) Subsidies and allowances issued in accordance with the unified provisions of the state;

Welfare funds, pensions and relief funds;

5. Insurance compensation.

Demobilized soldiers, demobilization fees and pensions;

(7) Resettlement fees, resignation fees, basic pensions or retirement fees, retirement fees and retirement living allowances paid to cadres and workers in accordance with the unified provisions of the state;

(8) Income from diplomatic representatives, consular officials and other personnel of embassies and consulates in China who should be exempted from tax according to relevant laws;

(9) Income exempted from tax as stipulated in international conventions and agreements signed by the Government of China;

(ten) other tax-free income stipulated by the State Council.

The tax exemption provisions in Item 10 of the preceding paragraph shall be reported by the State Council to the NPC Standing Committee for the record.

Article 5 Individual income tax may be reduced under any of the following circumstances. The specific scope and time limit shall be stipulated by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government and reported to the Standing Committee of the people's congress at the same level for the record:

The income of the disabled, the elderly and the martyrs;

(2) Suffering heavy losses due to natural disasters.

The State Council can stipulate other tax reduction measures and report them to the NPC Standing Committee for the record.