|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
In order to regulate the administration of individual income tax of individual investors, and to ensure the lawful collection of individual income tax and in full amount, the relevant issues concerning the collection of individual income tax on individual investors are hereby clarified as follows: I. Handling of a individual investor's paying consumption expenses and purchasing family properties with the money of the enterprise (including individual enterprise, partnership enterprise, and other enterprises) for himself/herself, his/her family members, and other relevant persons Where the individual investors of a sole proprietorship or partnership enterprise pays with the money of the enterprise for any consumption expenses irrelevant to the business operations of the enterprise or any property expenses for purchase of automobiles or houses for himself/herself, his/her family members, or the relevant persons, such payments shall be regarded as the enterprise's distribution of profits to the individual investor, and shall be included in the individual business income of the investor, and be calculated for individual income tax purposes under the item of "business income of individual industrial and commercial households". Where the individual investor of any enterprise other than sole proprietorship or partnership enterprise pays with money of the enterprise for any consumption expenses irrelevant to the business operations of the enterprise or any property expenses for purchase of automobiles or houses for himself/herself, his/her family members, or the relevant persons, such payments shall be regarded as the enterprise's distribution of bonuses to the individual investor, and shall be calculated for collection of individual income tax under the item of "income of interest, dividends, and bonuses". The aforesaid expenses of an enterprise may not be deducted before the payment of income taxes. II. Handling of an individual investor's failure to repay, after a long period, the borrowings from the enterprise (excluding individual enterprise and partnership enterprise) he/she invested Where a individual investor neither repays, after a tax year, the borrowings from the enterprise (excluding sole proprietorship and partnership enterprises) he/she invested, nor uses the money in the enterprise's business operations, the borrowings not repaid may be regarded as the enterprise's distribution of bonuses to the individual investor, and shall be calculated for payment of individual income tax under the item of "income of interest, dividends, and bonuses". III. The part of the Circular of the State Administration of Taxation on Further Strengthening the Administration of the Collection of Individual Income Tax on High-income Earners (No.57 [2001] of the State Administration of Taxation), which provides that if the residual profits of a private limited liability company after payment of enterprise income tax has not be distributed or invested, and has been on the account for 1 year, such profits shall, according to the contribution proportion of the investor (shareholder), from the second year when the profits are on account be calculated for individual income tax purposes, shall be suspended. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|