| Home | News| Living in China| MMS | SMS | About us | Contact us|
   
 Language Tips > Business news
Updated: 2005-10-28 11:09

Tax threshold set at 1,600 yuan

十届全国人大常委会第十八次会议10月27日下午表决通过全国人大常委会关于修改个人所得税法的决定,起征点为1600元,决定将于明年元旦起施行。对这次个税修正案,社会各界寄予厚望,并为此展开了激烈的争论。各行各业人士虽然立足点不同,但有一点却是相同的,就是希望通过个税修正使税收充分发挥调节收入分配、平衡贫富差距的社会功能。

 

Tax threshold set at 1,600 yuan

A revised Personal Income Tax Law was adopted by China's top legislators yesterday, raising the threshold for monthly personal income tax from 800 yuan (US$99) to 1,600 yuan (US$198) a move that will help ease the burden on low-wage earners.

The amendment will become effective next year.

The Standing Committee of the National People's Congress (NPC) approved the amendment during a five-and-a-half-day session, which closed yesterday.

When itcomes into force, only a quarter, or 26 per cent, of wage earners are expected to pay personal income tax, Lou Jiwei, vice-finance minister, told a press conference yesterday.

In 1994, China began levying income tax on citizens earning more than 800 yuan, but only 1 per cent of people were earning more than that. Now, about 60 per cent earn that much.

Government takings from personal income tax will drop by 28 billion yuan (US$3.5 billion) annually with the implementation of the new law, Lou said.

The new threshold was raised from 1,500 yuan (US$185) proposed in a draft law revision after a public hearing last month. The hearing, the first organized by the country's top legislature, invited 20 representatives chosen from nearly 5,000 applicants across the country to listen to their views. The move was widely hailed as a good example ofheedingpublic opinion while making legislation.

Twelve of them were for a threshold higher than 1,500 yuan, according to sources with the NPC's Law Committee.

The increased threshold will not have a bearing on foreigners working in China, who pocket 4,000 yuan (US$495) tax-free each month.

But many foreign businessmen and enterprises have been watching with interest as most of their employees are Chinese.

(China Daily)

 

Vocabulary:
 

come into force: (生效)

heed: listen to and consider (听从及考虑)

 


 

 
Go to Other Sections
Story Tools
Related Stories
· Five-year plan addresses pressing problems
· Avon wins OK to resume direct selling in China
· Bausch & Lomb halts contact lens solution sales in HK
more
 
Copyright by chinadaily.com.cn. All rights reserved

版权声明:未经中国日报网站许可,任何人不得复制本栏目内容。如需转载请与本网站联系。
None of this material may be used for any commercial or public use. Reproduction in whole or in part without permission is prohibited.