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2.7m declare personal income tax in 2009, up 12%

By Qiang Xiaoji (chinadaily.com.cn)
Updated: 2010-05-20 17:14
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As of March 31, 2.7 million people in China declared their personal incomes to the tax authorities, up 12 percent from last year, according to statistics released by the State Administration of Taxation on Wednesday.

Taxes reported totaled 138.4 billion yuan, an increase of 10.8 billion yuan from a year ago.

The reported annual individual earnings averaged 347,800 yuan, and the average personal income tax to be paid stood at 52,400 yuan.

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According to tax regulations, taxpayers whose annual incomes exceed 120,000 yuan must report their individual earnings. Self-declaration for personal incomes for the year 2009 was completed at the end of last month.

China News Service reported Thursday that more and more high-income residents are getting used to declaring their personal incomes in the first quarter every year, citing a source with the State Administration of Taxation. The personal income tax they pay accounts for about one-third of their reported personal incomes, a ratio that keeps increasing each year, the source said.

According to the report, as many local tax authorities had strengthened the management and supervision of the high-income group's tax sources, both the number of self-declared taxpayers and the tax they paid increased year-on-year.

As of Jan 1, incomes from transfer of restricted shares were also included in the personal incomes to be taxed. From January to March, 771 sales departments of securities companies in 33 provinces and cities across the country deducted taxes of 885 million yuan, or an average of 93,700 yuan per person. The highest tax was 41.29 million yuan, according to the report.