The announcement regulates the type of income which once belonged to “other income” shall now belong to “Contingent income”. The taxable rate is still kept at 20%. Related income includes:
1) Income from providing guarantees to others;
2) Income from receiving house donated by others (taxable scope is same as before);
3) Gifts income from an enterprise to individuals who are non-staff of the enterprise randomly in business promotion, advertising, etc.;
4) Gifts income from an enterprise to individuals who are non-staff of the enterprise at annual meetings, seminars, celebration events and other activities; However, gifts income from consumer vouchers、cash vouchers、exchange coupon and discount coupon given by enterprises with price discount or concession nature can be exempted from IIT.
Furthermore, the announcement also regulates that individual shall pay IIT when he/she begins to get pension income from Individual Tax-deferred Commercial Pension Insurance. The income shall belong to “Income from wages and salaries”, and taxable at 75%*10%=7.5%.