Laws of the People's Republic of China

Circular of the State Administration of Taxation concerning Printing and Distributing the Measures for the Self-declaration of Individual Income Tax (for Trial Implementation)

Guo Shui Fa [2006] No.162

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan:

For the purpose of reinforcing the administration of individual income tax collection, improving the system of self-declaration of individual income tax, and maintaining the lawful rights and interests of taxpayers, the State Administration of Taxation formulated the Measures for the Self-declaration of Individual Income Tax (for Trial Implementation) in accordance with the Individual Income Tax Law of the People's Republic of China and the detailed rules for implementation thereof, the Law of the People's Republic of China Concerning the Administration of Tax Collection and the detailed rules for implementation thereof, as well as other related tax provisions, . The Measures are hereby printed and distributed to you. Please abide hereby earnestly.

Appendix: Specimen of Individual Income Tax Return

The State Administration of Taxation

November 6, 2006 Appendix: Measures for the Self-declaration of Individual Income Tax (for Trial Implementation) Chapter I General Provisions

Article 1

For the purpose of further reinforcing the collection administration of individual income tax, safeguarding tax revenues of the State, maintaining the legitimate rights and interests of taxpayers, facilitating and regulating the self-declaration of taxpayers, the present Measures are formulated in accordance with the Individual Income Tax Law of the People's Republic of China (hereinafter referred to as the Individual Income Tax Law) and the detailed rules for implementation thereof, Law of the People's Republic of China Concerning the Administration of Tax Collection (hereinafter referred to as the Law Concerning the Administration of Tax Collection) and the detailed rules for implementation thereof, as well as other related laws and regulations..

Article 2

Where a taxpayer obligatory to pay tax under the Individual Income Tax Law and is under any of the following circumstances, he/she shall make his/her tax declaration in accordance with the present Measures:

(1)

Acquiring an annual income of 120,000 Yuan or more;

(2)

Acquiring wages and salaries from two or more sources within the territory of China;

(3)

Acquiring incomes from abroad;

(4)

Acquiring taxable incomes for which there is no corresponding withholding agent;

(5)

Any other circumstance as stipulated by the State Council.

Article 3

Any taxpayer who acquires an annual income of 120,000 Yuan or more as prescribed in Item (1) of Article 2 of the present Measures shall, whether the individual income tax has been paid in full amount for all items of his income, make tax declaration to the taxation authorities in accordance with the present Measures after a tax year ends.

Any taxpayer who is under any of the circumstances as prescribed in Items (2) to (4) of Article 2 of the present Measures shall, in accordance with the present Measures, make tax declaration to the taxation authorities after receiving the income.

The measures for those taxpayers who are under the circumstances as prescribed in Item (5) of Article 2 of the present Measures to make tax declarations shall be separately stipulated in accordance with specific circumstances.

Article 4

The " taxpayer who acquires an annual income of 120,000 Yuan or more" as stipulated in Item (1) of Article 2 of the present Measures may not involve those individuals who have no residence within the territory of China and have resided within the territory of China for less than one year in a tax year.

The "taxpayer who obtains incomes from abroad" as stipulated in Subparagraph (3) of Article 2 of the present Measures means those individuals who have residence within the territory of China or have resided within the territory of China for one full year in a tax year.

Chapter II Contents for Declaration

Article 5

After a tax year ends, a taxpayer who obtains an annual income of 120,000 Yuan or more shall fill in an Individual Income Tax Return (For the taxpayer who obtains an annual income of 120,000 Yuan or more) (see the attached Form 1), and submit it to the taxation authorities when making tax declaration, and submit the photocopy of his/her effective identification certificate as well as other related materials required to be submitted by the taxation authorities at the same time .

The "effective identification certificate" includes the taxpayer's identification card, passport, home visit permit, military staff certificate and so on .

Article 6

The "annual income of 120,000 Yuan or more" as stipulated in the present Measures means the total amount of the following items of income obtained by a taxpayer in a tax year reaching 120,000 Yuan:

(1)

Wages and salaries;

(2)

Income of production or business operation obtained by self-employed industrial and commercial households ;

(3)

Income from contractual or leased operation of enterprises and institutions;

(4)

Remunerations for providing services;

(5)

Author's remunerations;

(6)

Franchise royalties ;

(7)

Interests, dividends and capital bonuses;

(8)

Income from leasing property;

(9)

Income from transferring property;

(10)

Contingent income; and

(11)

Other taxable income determined by the public finance department of the State Council.

Article 7

The "income" as stipulated in Article 6 of the present Measures does not include the following kinds of income:

(1)

Tax-exempt income mentioned in Subparagraphs (1) to (9) of Article 4 of the Individual Income Tax Law, namely,

(a)

awards for¡¡achievements¡¡in¡¡science, education,¡¡technology, culture, public health, physical¡¡culture¡¡and¡¡environmental¡¡protection granted by provincial people's governments, ministries and commissions under the State Council , the People's Liberation Army units at army level and above and by foreign or international organizations;

(b)

interests accruing from national bonds and other financial debentures issued by the state;

(c)

subsidies and allowances received¡¡under¡¡the¡¡state¡¡uniform provisions namely, special government allowances, allowances for academicians, allowances for senior academicians that are granted in accordance with the provisions stipulated by the State Council as stipulated in Article 13 of the Regulation concerning the Implementation of the Individual Income Tax Law, and other kinds of subsidies and allowances that are exempt from individual income tax as stipulated by the State Council;

(d)

welfare benefits, pensions for the disabled or for the family of the deceased and relief funds ;

(e)

insurance compensation;

(f)

military severance pay and demobilization pay;

(g)

settling-in allowances, severance pay, retirement wages, retirement wages for veteran cadres, and living subsistence allowances for retired veteran cadres distributed to cadres and employees under¡¡the¡¡state¡¡uniform provisions;

(h)

incomes of diplomatic representatives, consular staff and other personnel of foreign embassies and consulates in China, which shall be exempt from tax in accordance with the provisions of related laws of China; and

(i)

incomes which shall be exempt from tax under the international conventions in which the Chinese Government joins or agreements which the Chinese Government has signed.

(2)

Incomes obtained from abroad which can be exempt from tax as stipulated in Article 6 of the Regulation concerning the Implementation of the Individual Income Tax Law; and

(3)

Basic endowment insurance premiums, basic medical insurance premiums, unemployment insurance premiums and public accumulation fund for housing construction paid by entities for their staff and individuals in accordance with the provisions of the State as stipulated in Article 25 of the Regulation concerning the Implementation of the Individual Income Tax Law.

Article 8

The annual amount of all items of income as stipulated in Article 6 of the present Measures shall be calculated in accordance with the following methods:

(1)

The incomes obtained from wages and salaries shall be calculated in light of the income prior to the expenses deduction (1,600 Yuan per month) and additional expenses deduction (3,200 Yuan per month);

(2)

The incomes from production and business operations obtained by self-employed industrial and commercial households shall be calculated in light of the taxable incomes. If the tax is collected by checking accounts, the corresponding incomes shall be calculated in light of the total amount of incomes with the cost, expenses and losses deducted for each tax year; and if the tax is collected at a fixed time and at a fixed amount, the corresponding incomes shall be calculated in light of the annual taxable incomes declared by the taxpayer himself/herself or the annual taxable business amount declared by the taxpayer himself/herself multiplied by the rate of taxable incomes;

(3)

The income from contractual or leased operation of enterprises and institutions shall be calculated in light of the total amount of income for each tax year, namely, the operation profits actually obtained by the contractor or lessee plus his/her income with the nature of wage and salary obtained from the enterprises and institutions he/she contracted or leased;

(4)

The remunerations for providing services or author's remunerations or franchise royalties shall be calculated in light of the income prior to the expenses deduction(800 Yuan or 20% of incomes each time);

(5)

The income obtained from leasing property shall be calculated in light of the amount of income prior to the expenses deduction (800 Yuan or 20% of incomes each time) and repairing charges;

(6)

The incomes obtained from transferring property shall be calculated in light of the amount of taxable incomes, namely, the balance of the amount of income from transferring property deducting the original value of property and tax and related reasonable expenses paid in the course of transferring property; and

(7)

The income obtained from interests, dividends and capital bonuses, contingent income or other incomes shall be calculated in light of the total amount of income.

Article 9

A taxpayer who obtains incomes under any of the circumstances as stipulated in Subparagraph£¨2£©to£¨4£© of Article 2 of the present Measures shall fill in and submit the corresponding tax return (see Appendixes 2 ¨C 9) to the taxation authorities , and submit other related materials required to be submitted by the taxation authorities at the same time.

Chapter III Place for Declaration

Article 10

The places for a taxpayer who obtains an annual income of 120,000 Yuan or more to make tax declaration shall be at follows respectively:

(1)

Where the taxpayer work for an employer within the territory of China, he/she shall make tax declaration to the taxation authorities at the locality of his/her employer;

(2)

Where the taxpayer work for two or more employers within the territory of China, he/she shall select and fix the taxation authorities at the locality of one employer to make tax declaration;

(3)

Where the taxpayer is not employed for any employer within the territory of China but there is income of production or business operations obtained by self-employed industrial and commercial households or income from contractual or leased operation of enterprises and institutions (hereinafter referred to uniformly as income from production or business operations) in the items of annual incomes, the taxpayer shall make tax declaration to the taxation authorities at the locality of the actual business place of one source; and

(4)

Where the taxpayer is not employed for any employer within the territory of China and there is no income from production or business operations in the items of his/her annual income, the taxpayer shall make tax declaration to the taxation authorities at the locality of his/her registered permanent residence. Where the taxpayer's registered permanent residence is within the territory of China but different from his/her habitual residence within the territory of China, the taxpayer shall select and fix the taxation authorities at the locality of either to make tax declaration. Where the taxpayer has no registered permanent residence within the territory of China, tax declaration shall be made to the taxation authorities at the locality of habitual residence within the territory of China.

Article 11

A taxpayer who obtains incomes under the circumstances as stipulated in Subparagraphs (2) through (4) of Article 2 of the present Measures shall make tax declaration respectively at the following places:

(1)

Where the taxpayer obtains wages and salaries from two or more sources, he/she shall select and fix the taxation authorities at the locality of one employer to make tax declaration;

(2)

Where the taxpayer obtains income from abroad, he/she shall make tax declaration to the taxation authorities at the locality of his/her registered permanent residence within the territory of China. Where the taxpayer's registered permanent residence is within the territory of China but different from his/her habitual residence within the territory of China, the taxpayer shall select and fix the taxation authorities at the locality of either to make tax declaration. Where the taxpayer has no registered permanent residence within the territory of China, tax declaration shall be made to the taxation authorities at the locality of his/her habitual residence within the territory of China;

(3)

A self-employed industrial and commercial household shall make tax declaration to the taxation authorities at the locality of the actual business place;

(4)

Where an investor of sole proprietorship enterprises or enterprises in partnerships has established two or more enterprises, the places for tax declaration shall be determined on the basis of the following different circumstances:

(a)

Where all the enterprises are sole proprietorship enterprises, tax declaration shall be made respectively to the taxation authorities at the locality of actual business place of each enterprise;

(b)

Where any established enterprise belongs to partnerships, tax declaration shall be made to the taxation authorities at the locality of /her habitual residence; and

(c)

Where any established enterprise belongs to partnerships and the place of habitual residence of the individual investor is different from the business management place of the established enterprises, the investor shall select and fix the taxation authorities of the business management place of any partnership he/she has participated in the establishment thereof to make tax declarations.

(5)

Except for the above circumstances, tax declaration shall be made to the taxation authorities at the place where the taxpayer obtains income.

Article 12

A taxpayer may not change the place for tax declaration at his/her own choice, and if the place for tax declaration needs to be changed by virtue of any special reason, he/she shall report it to the former taxation authorities for archival filing.

Article 13

The place for tax declaration as stipulated in Item (c) of Subparagraph (4) of Article 11 of the present Measures may not be changed within five years, unless by virtue of any special reason.

Article 14

The term "place of habitual residence " of the present Measures means such an ultimate place where a taxpayer successively resides for one year or more after leaving his/her place of registered permanent residence.

Chapter IV Time Limit for Declaration

Article 15

A taxpayer who obtains an annual income of 120,000 Yuan or more shall make tax declaration to the taxation authorities within three months after a tax year ends, .

Article 16

If the taxable income obtained from production and business operations by self-employed industrial and commercial households, investors of sole proprietorship enterprise or enterprises in partnerships which should be prepaid in monthly installments, the taxpayer shall make tax declaration within seven days after each month ends; and if such taxable income should be prepaid in quarterly installments, the taxpayer shall make tax declaration within seven days after each quarter ends. The taxpayer shall make clearing-up settlement of payments within three months after a tax year ends.

Article 17

Where the taxable income obtained from contractual or leased operation of enterprises and institutions once at the end of a year, the taxpayer shall make tax declaration within 30 days after the incomes are obtained; and where such incomes are obtained by several times within a tax year, the taxpayer shall make tax declaration of advanced payments within seven days of the month following the date in which the income was obtained each time; and make clearing-up settlement of the payments within three months after a tax year ends.

Article 18

A taxpayer who obtains incomes from abroad shall make tax declaration to the taxation authorities within the territory of China within 30 days after a tax year ends.

Article 19

Except for the circumstances stipulated in Articles 15 to 18 of the present Measures, a taxpayer who should make tax declaration for obtaining other kinds of income shall make tax declaration to the taxation authorities within seven days of the month following the date in which the income was obtained.

Article 20

If a taxpayer can not make tax declaration within the stipulated time limit and requires to make the postponement, he/she shall be handled in accordance with Article 27 of the Law concerning the Administration of Tax Collection and Article 37 of the Detailed Rules for the Implementation of the Law concerning the Administration of Tax Collection.

Chapter V Methods for Declaration

Article 21

Tax declaration can be made by means of data messages or posts, or directly to the taxation authorities, or by other means consistent with the provisions as stipulated by the taxation authorities.

Article 22

Where the tax declaration is made by means of data messages, the taxpayer shall keep related paper materials within the time limit and in accordance with the requirements as stipulated by the taxation authorities .

Article 23

Where the tax declaration is made by means of post mail , the receipts of registered letters issued by the post office shall be the proof of declaration, and the postmark date shall be taken as the actual date of declaration.

Article 24

A taxpayer may authorize an intermediary institution which is qualified to be the tax agency or someone else to make tax declaration.

Chapter VI Tax Declaration Administration

Article 25

The taxation authority shall publish all sorts of specimens of tax return on its website or place them at its tax service hall for taking cognizance of tax declarations so as to be freely downloaded or used by taxpayers at any time.

Article 26

The taxation authorities shall remind those taxpayers who obtain an annual income of 120,000 Yuan or more to make self-declaration by appropriate means within the legal time limit for tax declaration every year.

Article 27

The taxation authority that takes cognizance of tax declarations shall, according to the taxpayers' declarations, handle the procedures for collecting, surcharging, refunding and deducting taxes in accordance with the provisions.

Article 28

The taxation authorities shall draw tax paid certificates in accordance with the corresponding provisions for those taxpayers who have made tax declaration and paid taxes.

Article 29

The taxation authorities shall keep the tax declaration information secret for the taxpayers in accordance with the law.

Article 30

Where a taxpayer changes the place for tax declaration, he shall report it to the former taxation authorities for archival filing, and the former taxation authorities shall timely send the information about the taxpayer's changing of the place for tax declaration to the new taxation authorities.

Article 31

The taxation authorities shall set up tax payment archives for the taxpayers who have made tax declaration, and shall implement dynamic administration.

Chapter VII Legal Liabilities

Article 32

Where a taxpayer fails to make tax declaration or submit tax payment materials within the stipulated time limit, it shall be handled in accordance with Article 62 of the Law concerning the Administration of Tax Collection.

Article 33

Where a taxpayer forges, alters, conceals or illegally destroys accounting books or bookkeeping documentations, or overstates expenses or does not state or understates revenues in the accounting books, or refuses to make tax declaration after having been informed by the taxation authority to do so or makes spurious tax declaration, refuses to pay or underpays the taxes payable, it shall be handled in accordance with Article 63 of the Law concerning the Administration of Tax Collection.

Article 34

Where a taxpayer fabricates any spurious tax calculation basis, it shall be handled in accordance with Paragraph 1 of Article 64 of the Law concerning the Administration of Tax Collection.

Article 35

Where a taxpayer obtains taxable income that should be withheld by a withholding agent, but the withholding agent fails to withhold or collect the taxes which should have been withheld or collected, it shall be handled in accordance with Article 69 of the Law concerning the Administration of Tax Collection.

Article 36

Where a tax official has any self-seeking misconduct or duty negligence, and fails to collect or under-collect the taxes payable, he/she shall be handled in accordance with Paragraph 1 of Article 82 of the Law concerning the Administration of Tax Collection.

Article 37

Where a tax official abuses his/her official capacity and raises difficulties for taxpayers on purpose, he/she shall be handled in accordance with Paragraph 2 of Article 82 of the Law concerning the Administration of Tax Collection.

Article 38

Where a taxation authority or tax official fails to keep secrets for taxpayers, it shall be handled in accordance with Article 87 of the Law concerning the Administration of Tax Collection.

Article 39

Where a tax agent violates the tax laws or administrative regulations, causing taxpayers fail to pay or underpay taxes, he/she shall be handled in accordance with Article 98 of the Detailed Rules for the Implementation of the Law concerning the Administration of Tax Collection.

Article 40

Any other tax-related violation shall be handled in accordance with the related tax laws and regulations.

Chapter VIII Supplementary Provisions

Article 41

The tax declaration returns shall be uniformly printed by the local taxation bureau of each province, autonomous region, municipality directly under the Central Government or city specifically designated in the state plan in accordance with the specimens as stipulated by the State Administration of Taxation.

Article 42

Other matters concerning tax declaration shall be governed by the Law in respect of the Administration of Tax Collection, the Individual Income Tax Law and other related laws and regulations.

Article 43

The tax declaration of an annual income of 120,000 Yuan or more as stipulated in Subparagraph 1 of Article 2 of the present Measures shall come into force as of January 1, 2006 in accordance with the time for implementation as stipulated in the Decision concerning Revising the Individual Income Tax Law of the People's Republic of China which is adopted at the 18th meeting of the Standing Committee of the 10th National People's Congress.

Article 44

The provisions in respect of tax declaration under the circumstances as stipulated in Subparagraphs (2) to (4) of Article 2 of the present Measures shall come into force as of January 1, 2007, and the Circular of the State Administration of Taxation concerning Printing and Distributing the Provisional Measures for the Self-declaration of Individual Income Tax (Guo Shui Fa [1995] No. 077) shall be concurrently abolished.

¡¡

Form 1

Individual Income Tax Return

£¨For individuals having an annual income of over 120,000 RMB Yuan£©

¡¡

¡¡¡¡Taxpayer's ID¡¡number:            

¡¡¡¡Taxpayer's name £¨signature/stamp£©:            

¡¡¡¡Income year:               

¡¡¡¡Date of filing:          

onetary unit: RMB Yuan

¡¡¡¡Responsible tax officer          Time:Date/Month/Year         Responsible tax office        

¡¡¡¡Instructions:

¡¡¡¡1. This return is designed for individuals who have an annual income of 120,000 Yuan or more according to the Individual Income Tax Law of the People's Republic of China, the Implementing Rules of the Individual Income Tax Law of the People's Republic of China, and the Self-declaration Rules of Income Tax Law (for Trial Implementation).

¡¡¡¡2. Obliged taxpayers may fill out either by themselves or other entrusted persons and submit the return to the local tax authority within 3 months after a tax year ends. Where it is unable to file the return within the stipulated time limit, taxpayers shall submit an application to the local tax authority within the stipulated time limit, and upon the tax authority's approval, the filing deadline may be extended.

¡¡¡¡3. The return should be filled out in Chinese or in both Chinese and a foreign language.

¡¡¡¡4. Instructions for filling out various items:

¡¡¡¡(1) Taxpayer's ID number and Taxpayer's name: This item is to be filled out by taxable individuals who make part or all of their annual income from production or business operations by individual industrial and commercial households, or from contracted or leased operations of enterprises and institutions.

¡¡¡¡Taxpayer's ID number: the number on the tax registration certificate.

¡¡¡¡Taxpayer's name: the name of the taxable individual industrial and commercial households, individually-owned enterprises, partnerships, or enterprises or social service providers partly or wholly funded by state treasury under contracted or leased operations.

¡¡¡¡(2) Income year and Date of filing:

¡¡¡¡Income year: the year in which the taxpayer obtains the income;

¡¡¡¡Date of filing: the actual date when the return is filed.

¡¡¡¡(3) ID Types: the name of the effective identification certificate of the taxpayer (ID Card, passport, military staff certificate, returning permit, etc.)

¡¡¡¡(4) ID number: the number of the effective identification certificate of the taxpayer.

¡¡¡¡(5) Date of arrival in China: the actual date of arrival in China for the taxpayer with no residence in China.

¡¡¡¡(6) Profession: the main profession of the taxpayer.

¡¡¡¡(7) Employer: the taxpayer's employer. The name of the employer for the reporting shall be filled out in case that there is more than one employer.

¡¡¡¡(8) Habitual residence: the last place where the taxpayer has lived for consecutively more than 1 year away from the place where he or she is registered as a permanent resident.

¡¡¡¡(9) Address in China: the address or the effective contacting address of the taxpayer. For a person with no residence who lives in a hotel, it means the room number and the hotel name.

¡¡¡¡(10) Annual income: the total amount of the corresponding items of income in the tax year. The annual income is calculated according to the Implementing Rules of the Individual Income Tax Law of the People's Republic of China and the Self Declaration Rules of the Individual Income Tax. The calculation shall be in Yuan. Those in foreign currencies shall be converted to the Yuan in light of the foreign exchange rate quoted by the state foreign exchange authority in charge.

¡¡¡¡(11) Tax pre-paid or withheld: the amount of the tax pre-paid or withheld for the current income items within China.

¡¡¡¡(12) Foreign tax credit: the amount of the individual income tax paid outside China that can be credited against the Chinese tax according to the Individual Income Tax Law of the People's Republic of China.

¡¡¡¡(13) This form is designed in A4 horizontal format with two duplicates, one of which is for the taxpayer and the other is for the tax office for keeping.

¡¡¡¡Forms 2-7 (omitted)

¡¡

Form 8:

Specimen of Individual Income Tax Return (For the Investors of Sole Proprietorship Enterprises and Partnerships)

¡¡

¡¡¡¡Taxpayer's ID number:           

¡¡¡¡Taxable period: From           (Date /Month /Year) to           (Date/ Month/ Year)

Monetary unit: RMB Yuan

¡¡¡¡Instructions

¡¡¡¡I. Scope of Application

¡¡¡¡i. This return is designated for the annual tax declaration as well as monthly and quarterly tax declaration of sole proprietorship enterprises and partnerships. With a view to the principles of seeking truth and making things easy, some related items in this return can be cut for monthly or quarterly tax declaration, and which shall be specifically decided by the local tax authority in accordance with the actual situation.

¡¡¡¡ii. Where some related items in this return need to be added, cut or adjusted for the investors engaging in some special industries in accordance with the requirements of these special industries, the provincial local taxation bureaus can make alterations by themselves according to this return.

¡¡¡¡II. Instructions for filling out the main items:

¡¡¡¡i. Items at the top of this return

¡¡¡¡1. Taxpayer's name: this item is to be filled in with the code given by the tax authority in-charge;

¡¡¡¡2. Taxable period: respective dates for the beginning and end of the period of tax declaration;

¡¡¡¡3. Monetary unit:  Yuan;

¡¡¡¡4. Type of business: this item is determined according to the taxpayer's main business operations; and

¡¡¡¡5. Enterprise's address: the place where the enterprise's business management organ is situated.

¡¡¡¡ii. Items in the middle of this return

¡¡¡¡1. The ¡°items deducted by exceeding the stipulated standards¡± as mentioned in column 7 of this return means the part for which the amount of taxable incomes should be increased after the enterprise deducts various kinds of costs, expenditures and losses from it in accordance with the deduction criteria other than those as stipulated in the Provisions on Collecting Individual Income Taxes from the Investors of Sole Proprietorship Enterprises and Partnerships and other related tax provisions (hereinafter referred to as the Provisions). The deduction criteria as mentioned in the Provisions as well as those not mentioned in the Provisions but consistent with the criteria stipulated in the national uniform financial and accounting system shall be considered as the aforesaid one.

¡¡¡¡2. The ¡°non-deductible items¡± as mentioned in column 19 of this return means the part that is not deductible in light of the Provisions and for which the amount of taxable incomes should be increased after the enterprise has deducted various kinds of costs, expenditures and losses therefrom.

¡¡¡¡3. The ¡°items of taxable incomes¡± as mentioned in column 30 of this return means those incomes, which have not been incorporated into the amount of taxable incomes by the enterprise and should be made up. The symbol of ¡°-¡± may be employed to indicate those incomes redundantly reported by virtue of a calculation error or any other special reason

¡¡¡¡4. The ¡°amount for making up losses¡± as mentioned in column 34 of this return means the amount of taxable incomes correspondingly reduced because the enterprise's losses in previous years could be made up before the tax in accordance with the Provisions.

¡¡¡¡5. The ¡°incomes arising from interests of treasury bonds¡± as mentioned in column 35 of this return means the interests obtained by the enterprise from buying treasury bonds that are exempt from tax but have been incorporated into the amount of incomes.

¡¡¡¡6. The ¡°amount of deduction of standard expenditures of investor¡± as mentioned in column 36 of this return means the amount of the investor's personal expenditures for which the deduction is permitted by local taxation bureau of each province, autonomous region or municipality directly under the Central Government.

¡¡¡¡7. The ¡°amount of taxable incomes¡± as mentioned in column 39 of this return means the ¡°incomes derived from production and business operation after tax adjustment¡± as mentioned in column 38 of this return in the case of an investor of a sole proprietorship enterprise; or the ¡°incomes derived from production and business operation after tax adjustment¡± as mentioned in column 38 of this return multiplied by the amount of taxable incomes calculated in accordance with the stipulated proportion of distribution in the case of an investor of a partnership; or the sum of the ¡°incomes derived from production and business operations after tax adjustment¡± as mentioned in column 38 of this return and the ¡°incomes derived from production and business operation of other enterprises¡± in item 3 of the ¡°Supplementary materials¡± at the time of year-end declaration in case that an investor launches two or more sole proprietorship enterprises.

¡¡¡¡8. The logic relationship between the main columns of this return is: (1) 5£½1-2-3-4, (2) 6£½7£«19£«30, (3) 33£½34£«35£«36£«37, (4) 38£½5£«6-33, (5) 41£½39¡Á40, (6) 43£½41-42, and (7) 46£½43£«44-45.

¡¡¡¡III. This form is designed in A3 vertical format with three duplicates two for the tax authority (of which, one for the tax accountant and the other for the tax collector), and the other for the taxpayer for keeping.

¡¡

Form 9

Specimen of Individual Income Tax Return

(For the investors of partnerships)

¡¡

¡¡¡¡Taxpayer's ID number

¡¡¡¡Taxable period: From         Date/ Month/ Year To          Date Month Year

Monetary unit:RMB Yuan

¡¡¡¡Instructions

¡¡¡¡I. Scope of Application

¡¡¡¡This return is designed for the consolidated annual tax declaration of the investors having launched two or more enterprises, and at least one of which is a partnership.

¡¡¡¡II. Instructions for filling out the main items

¡¡¡¡i. Items on the top of this return

¡¡¡¡1. Taxpayer's name: this item is to be filled in with the code given by the competent tax authority at the locality where the investor makes tax declaration;

¡¡¡¡2. Taxable period: dates respectively for the beginning and end of the period of tax declaration

¡¡¡¡3. Monetary unit:  Yuan

¡¡¡¡ii. Items in the middle of this return

¡¡¡¡1. The columns 2 to 7 shall be respectively filled in with the amount of taxable incomes obtained from each partnership or sole proprietorship enterprise by the taxpayer; and the enterprise's name shall be filled in the column of ¡°item¡±.

¡¡¡¡2. The logic relationship between the main columns of this return is: 1£½2£«3£«4£«5£«6£«7;

¡¡¡¡9£½1¡Á8-quick calculation deduction;

¡¡¡¡11£½9-10; and

¡¡¡¡14£½11£«12-13.

¡¡¡¡III. This form is designed in A3 vertical format with three duplicates: two for the tax authority (of which one for the tax accountant and the other for the tax collector), and the other for the taxpayer to keep.