Commencing January 1, 2007, individuals with an annual income over RMB 120,000 shall have the obligation to declare their individual income tax by themselves to local tax authority.

Guangzhou Local Taxation Bureau recently released the "Notice on Income Tax Self-Declaration by Individuals with an Annual Income over RMB 120,000" and the "Guideline on Obtaining Tax Refund and Credit for Individual Income Tax", stipulating the provisions on declaration method, venues, calculation method of the six items of annual income, entrusted declaration, and the procedures for obtaining tax refund and credit.

According to the Guidelines, besides those stipulated in Article 6, 7 and 8 of "The Self Declaration Rules on Individual Income Tax (provisional)" released by the State Administration of Taxation, the annual income of an individual shall include the following items: 

? Remuneration for providing services, and royalties;
? Income from the lease of property;
? Income from the transfer of housing property;
? Bank deposit interests of individuals and bond interests of enterprises;

For "self-employed industrial and commercial households" and "individually-owned enterprises" whose income tax is assessed according to the levying rate, the rate of taxable income = rate of income tax/tax rate; or the taxable income can be calculated by: (Tax payable -"quick calculation deduction")/tax rate;

Income from the transfer of shares. 

You can read or download information on declaration laws & regulations, Income Tax Return form, declaration procedures on the website of Guangdong Local Taxation Bureau. Should any question arise during the declaration process, please visit the website www.gzds.gov.cn or call the hotline 12366-2. 

Editor: Yan