THE SELF DECLRATION RULES CONCERNING INDIVIDUAL INCOME TAX (provisional) carried out by State administration of Taxation, Taxable individuals with an annual income of over 120,000 RMB Yuan have the obligation to fill out and submit the return to the local tax authority within 3 months after the end of the tax year, either by themselves or other entrusted preparers.
  
 
Recently, the State Administration of Taxation makes a notice that according to further subdivide THE SELF DECLRATION RULES CONCERNING INDIVIDUAL INCOME TAX. If your annual income in 2006 is over 120,000 RMB, you should go to the local tax bureau to declare during the period of January 1st, 2007 to March 31st, 2007.
  
According to the < THE SELF DECLRATION RULES CONCERNING INDIVIDUAL INCOME TAX (provisional)> issued by the State Administration of Taxation, the procedure of individual declaration and the calculation of the annual income is “ quite complex” for common people. For example, the annual income includes vocation, region, stocks, house selling and lottery income. And the calculation of the delay declaration is more complicated. Those are not easy for the common people to master.
  
 
According to the new < Law of the People's Republic of China concerning The Administration of Tax Collection>, the penalty of the delay is relatively high. Where a taxpayer fails to file tax returns or submit the information on tax payment within a prescribed time limit or a withholding agent fails to furnish reporting schedules on the taxes withheld and remitted or collected and remitted or fails to submit the relevant information to the tax authority within the prescribed time limit, the tax authority shall order the taxpayer or withholding agent to correct the acts within the prescribed time limit and may impose a fine of not more than 2,000 Yuan on the taxpayer or withholding agent; if the case is serious, the tax authority may impose a fine with the amount from 2,000 Yuan to 10,000 Yuan on the taxpayer. Besides, if the taxpayer is considered guilty, he will face the punishment by the law.
  
Governors and experts say that, lots of people are not clear with the passed 12 moths’ income, and the procedures are complicated. So the tax agent is a good choice.
  
 
The reason why choosing tax agent:
Reason Percentage
To avoid the dangerous, and the professional agency is reliable
28%
Do not want others to know the annual income
26%
Not familiar with the policy
12%
The procedures are too complicated
22%
The company entrusts the tax agency to declare
12%