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The comparison of individual income tax in China and Ireland

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Introduction

The comparison of individual income tax in China and Ireland Introduction: For this paper, our project is the comparison of taxation between China and Ireland. Our team "Dream Team",picked the Income Tax as an core example to discribe the differences. So, we will introduce simply some information about Chinese income taxation, of course, we will also try our best to realise the Irish income tax, from several aspects: Definition, Taxpayer, Income tax rate, and the calulation of the number of income tax. We wanna have a further comprehension on the taxation. (1) Definition: Ireland: The income tax levied on the income of individual,unincorporated bodies, trustees and personal representatives in the country by the taxation institute or the department of taxation.This is partly constitute on government income. China: Individual income tax is a legal-standard's blanket term that adjust social relation about the levy and management of personl income tax between government revenue collecting offices and natural persons. Personal income tax is a tax levied on income of a naural person, include individual wage, stipend income, income from production and business by individually-owned business and etc 11 items . (See appendix 1.1) (2) Taxable Person: Ireland: (1) Individual (a) The individual who is resident, ordinarily resident and domiciled in the State is liable to income tax in respect of his/her total income wherever arising. (b) An individual who is not resident in the State is normally liable to income tax in respect of income arising to him/her in the State. ...read more.

Middle

5 progressive tax rate in excess of specific amounts?The tax rate bracket and division, the highest level is 35%, the lowest level is 5%. there are 5 levels in total. (see Appendix 4) (3) Proportional rate of tax. income from author's remuneration, remuneration for personal services, royalties, interest, dividends, bonuses, lease of property and transfer of property, and other incomes, applicable to the scale tax rate of 20% The level of china's Individual income in 2009 (Appendix3 ) Income level Tax rate% 1 �0-�500 p.m. 5% 2 �500-�2,000 p.m. 10% 3 �2,000�5,000 p.m. 15% 4 �5,000-�20,000p.m. 20% 5 �20,000-�40,000p.m. 25% 6 �40,000-�60,000p.m. 30% 7 �60,000-�80,000p.m. 35% 8 �80,000-�100,000p.m. 40% 9 Over �100,000p.m. 45% Appendix 4 Income level Tax rate% 1 �0-�500 p.m. 5% 2 �500-�10,000 p.m. 10% 3 �10,000�30,000 p.m. 20% 4 �30,000-�50,000 p.m. 30% 5 Over �50,000 p.m. 35% N.B:The amount of monthly income after deducting the cost of the balance of 2000 CNY(EUR 201) or less net of additional costs to the balance. The latest exchange rate:1 EUR=9.9457 CNY(4th Nov. 2009) Comparion: The similarity is both of Chinese and Irish personal income tax rate rely on the personal income level. And the personal income tax rate in Ireland also depends on the personal Circumstances, marital status like " whether she is single, with children or not..." to make thresholds, then income in the threshold taxed at 20%, balance at 41%. However, in China, the tax rate just depend on income level, but using different method which is based on the sources of income. ...read more.

Conclusion

Individual income tax of income from contracted and leased operation of enterprise or institution = taxable income amount by the applicable tax rate - the number of simplified deduction (4) Individual income tax of income from remuneration for personal service(Below the 4000 yuan)=(everytime income - 2000yuan) �20% individual income tax of income from remuneration for personal service(over the 4000 yuan)=[everytime income �(1- 20%)] � axable income amount by the applicable tax rate - the number of simplified deduction (a) The income of not more than 20,000 yuan ,tax rate is 20%, the number of simplified deduction is 0. (b) The income of between 20,000 yuan and 50,000 yuan , tax rate is 30%, the number of simplified deduction is 2000 yuan. (c) The income of more than 50,000yuan,tax rate is 40%, the number of simplified deduction is 7000 yuan. (5)individual income tax of income from author's remuneration(everytime income below 4000 yuan) =(everytime income - 2000yuan) �20%�(1- 30%) individual income tax of income from author's remuneration(everytime income over 4000 yuan) =[ everytime income � (1- 20%)] �20%�(1- 30%) (6) Individual income tax of Income from loyalities and lease of property (everytime income below 4000 yuan) =(everytime income - 2000 yuan) �20% individual income tax of Income from loyalities and lease of property (everytime income over 4000 yuan) =[ everytime income � (1- 20%)] �20% (7) Individual income tax of Income from interest, dividends and bonuses, transfer of property ,Contingent and Other =everytime income �20% Comparison: The method of calculating the income tax is different. ...read more.

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