(Promulgated by Decree No.272 of the State Council of the People's Republic of China on September 30,1999, and effective as of November 1,1999)
Article 1 These Measures are formulated in accordance with the provisions of
Article 12 of the Individual Income Tax Law of the People's Republic of China.
Article 2 Any individual who earns Renminbi or foreign currency savings deposit interest income from savings institutions within the territory of the People's Republic of China shall pay individual income tax in accordance with these Measures.
Article 3 The basis for computing the levy of individual income tax on savings deposit interest income is the interest on the savings deposits in Renminbi or foreign currencies earned by taxpayers.
Article 4 A 20% proportional tax rate shall apply to the individual income tax on savings deposit interest income.
Article 5 The individual income tax shall be exempt from interest income earned by individuals from educational savings deposits and interest income from other special savings deposits or special funds of a savings nature as specified by the financial department of the State Council.
The educational savings deposits as mentioned in the preceding paragraph refer to special savings for which an individual opens an account with a designated bank, deposits a prescribed amount of money and uses it for the purpose of education in accordance with the relevant provisions of the State.
Article 6 The individual income tax on interest income from savings deposits is computed and collected on the basis of the interest income earned each time.
Article 7 With respect to the collection of individual income tax on interest income from savings deposits, the savings institutions paying interest shall act as the withholding agents effecting withholding and payment.
Article 8 The withholding agents shall, when paying interest to the depositor or handing the business of automatic re-deposits of savings deposits, withhold and pay the tax according to law.
The tax withheld by the withholding agents shall be clearly indicated on the interest payment receipt issued to the depositor.
Article 9 The withholding agents shall turn over the tax payments which are withheld each month, to the Central Treasury, within the first 7 days of the following month and submit a withholding and payment statement to the competent local tax authorities; where the tax payments withheld are in a foreign currency, the foreign currency shall be converted into Renminbi at the Renminbe benchmark exchange rate announced by the People's Bank of China on the last day of the month before the Payment, and paid into the Central Treasury in Renminbi.
Article 10 On the basis of the tax payments which are withheld, the withholding agent shall be paid a 2% processing fee.
Article 11 The tax authorities shall strengthen supervision and inspection of the circumstances of withholding agents withholding and paying tax payments and the withholdingagents shall cooperate actively by reporting the situation accurately and providing the relevant data, and may not refuse or conceal.
Article 12 The State Administration of Taxation shall be responsible for the collection and administration of the individual income tax on savings deposit interest income in accordance with the law of the People's Republic of China on Administration of Tax Collection, the Individual Income Tax Law of the People's Republic of China and the provisions of these Measures.
Article 13 the savings institutions as mentioned in these Measures refer to institutions of commercial banks, urban credit cooperatives and rural credit cooperatives that operate savings deposit business with the approval of the People's Bank of China or its branches, and institutions of postal enterprises that operate savings deposit business according to law.
Article 14 No individual income tax shall be levied on interest income generated on savings deposits prior to October 31,1999. Any interest income generated on savings deposits as of November1, 1999 shall be subject to individual income tax in accordance with these Measures.
Article 15 These Measures shall come into force as of November 1, 1999.
