Recently, personal finance has become a very hot topic. Banks, insurance companies, investment consulting firms, and tax, accounting and other intermediary institutions have involved personal finance market, China has emerged a group of personal financial planners, Certified Financial Planner training certification has been initiated; financial products, in addition to the traditional deposit, treasury bills, the stocks, funds, insurance, foreign exchange, real estate and other products are emerging and the formation of climate.
some institutions and individuals promote personal financial product or financial methods, consciously or unconsciously take the two extremes: on the one hand, the basic does not consider the impact of taxation on financial management, artificially inflated financial benefits; the other hand, public financial products play “free” signs, to mislead customers. In this regard, Hong Kong, Hao Liang Yanying State Financial Group at a meeting that the directors of Registered Financial Planners is providing financial services to individuals and families, should be considered in the full range of financial revenue and expenditure under the premise of the customer, take into consideration risk, tax, investment and other factors, financial plans tailored to customers to provide financial planning proposals and to help customers implement. Tax arrangements, the Certified Financial Planner should be based on laws and regulations, not contrary to law.
case, the current tax laws and regulations on financial products, how to provide for the levy exemption is it? The main reporter on the popular financial products, combined with some of the tax professionals were analyzed.
yuan Renminbi Banking Financial also Tax
since its launch last September, commercial banks have become a hot competition among businesses, including four state-owned commercial banks, and most of the joint-stock commercial banks have been involved in this emerging market. In September 2004 to December short period of 3 months, the RMB banking business to the rapid formation of a 300 billion yuan market scale. Around the Spring Festival this year, some banks had also sold RMB financing products. But since March has been the People’s Bank to reduce the excess reserve ratio of financial institutions, leading to inter-bank market interest rates, the renminbi is expected to yield financial products also will be reduced, major banks have stopped offering new renminbi wealth management products, “RMB financial hot” sudden drop in temperature. What
RMB banking? A branch of China Construction Bank told reporters that the renminbi banking simply, is that investors renminbi wealth management products through the purchase of way, the funds invested by the bank management, bank after the expiration of a certain rate of return calculation based on the returns investors of investment. RMB financing sought after by people the reason why, from the publicity of the commercial banks: rate of return is generally higher than savings rates by 1 percentage point or so, and generally avoid fees, subscription fees. RMB financing generally bonds, policy financial bonds, central bank bills and other investment objects, so the market low-risk, high security funds.
RMB financing products purchased whether the gains tax, the payment of any tax? This issue has been rather ambiguous. Some organizations and individuals to introduce RMB financing products, the “interest tax-free” as the marketing of the signs; and a bank source said, the RMB to buy financial products have their own income tax returns by investors, the bank is not responsible for withholding. This official said, according to “Personal Income Tax Law,” the relevant provisions of the purchase of financial products RMB gains should be taxed. At present, the RMB investment in the direction of more complex financial products, tax principal concerns both banks, also involves the individual, the specific tax measures also need to study.
savings is a reasonable foundation
journalists do not pay attention to financial management, a friend, the unit made the wages paid in addition to normal consumption of free part, the past few years has never been collated, there has been folded on wages, do not know specifically how much money. A few days ago due to the car, the bank requires all out. Out of money so he was very surprised: discount on wages actually save 10 million!
the Agricultural Bank of China as a credit manager of a branch from the President that the savings is a reasonable foundation of personal and family financial management. Everybody basically did save, but many people’s savings approach is not science. Discount on the money on the salary fixed for several years was the most lose approach. On the wage credit, because the money belongs to current savings, interest rates the lowest. At the present rate, current 0.72%, 1-year 2.25% 1.53% difference between the two. While saving money management is the easiest, but there are some tips. For example, in the interest rates change frequently, especially the possibility of raising interest rates, the current savings, of course not desirable, 3, 5-year regular savings are not worthwhile, because their interest rates from the impact of interest rate adjustments, in the case of interest rate Interest is also unchanged. Therefore, it is best to do 2 years of regular savings.
savings deposits to pay 20% of personal income tax, bank will automatically deduct interest payments. From the President, at present there do not pay interest on a personal income tax savings, this is the education savings. Education Savings for the development of education in the country are offering savings of species, Industrial and Commercial Bank was first introduced in 1999, can now take deposits of financial institutions have introduced the basic education savings business. Education is a fixed deposit, fixed time deposit savings, the monthly minimum deposit amount of each 50 yuan, the maximum aggregate principal amount of 2 million. Fourth grade in school (including the fourth grade) or more students, I can hold depositors (students) booklet or identity card to the savings institutions to depositors my (students) the name of opening deposit accounts. Education Savings can enjoy two benefits: First, education savings deposit interest income exempt from personal income tax, bank interest, the depositor is receiving non-compulsory education by proof of student status or admission notice, deposit interest income are exempt from personal income tax; Second installment savings savings savings as education, Lump enjoyed the preferential interest rates.
is worth noting that, education savings Participants primary and secondary students in the school and each student can only enjoy once. Some savings institutions in order to attract deposits, illegal for the students to open accounts, open fake accounts. This approach has been investigated by tax authorities, can not get a false education savings interest tax-free benefits.
different tax treatment of a variety of bonds
reporters April 10 early in the morning to see the Beijing savings banks in a long queue in front row by asking to know their queuing certificated in 2005 (Phase II) bonds. According to Bank of concerned parties, certificated in 2005 (Phase II) bonds in the 10 counter sales at all banks, scheduled to end April 30 sale. Current total 35 billion yuan treasury bonds, of which 3-year 24.5 billion, a coupon rate of 3.37%; 5-year 10.5 billion, a coupon rate of 3.81%. According to figures released by Industrial and Commercial Bank, April 10 debt first day of issue, ICBC sold a total of two bonds 4.623 billion yuan, of which three-year sales of 3.201 billion yuan of treasury bonds, five-year sales of 1.422 billion yuan of treasury bonds.
Treasury sells bonds can not buy the phenomenon has been going on for a long time. The reason is that debt interest tax relief, in general, over the same period interest rates than bank savings deposit rate slightly higher interest tax deduction. Tax experts, CAI Chang, associate professor of Shandong University of Finance believes that China’s stock market risk is too high, the operation was not standardized, so that debt is becoming a major personal finance products. With the continuous development of the bond market, bond types is increasing. By issuers can be divided into government bonds, local government bonds, financial bonds, corporate bonds; at maturity can be divided into long-term bonds, medium-term bonds, short-term bonds. Is the national debt, can also be divided into three types, namely general bonds, bonds and electronic accounting book-entry bonds, the different types, trading methods, distribution methods and revenue risks are also different.
investors trading gains bonds consists of two parts, one interest, book-entry treasury bonds as part of a bid-ask spread income. At present, China’s tax law, investors trade bonds, interest income and spread access to income exempt from personal income tax.
by tax law, investors to buy financial bonds issued by the State are also exempt from personal income tax. Since the concept is not a good understanding of financial bonds, people tend to misunderstanding. Concerned parties, although the tax law, interest on bonds issued by the State tax, but qualify for tax exemption in recent years, almost no financial debt. Now the State Development Bank, Agricultural Development Bank and although a lot of financial bonds issued, but as the People’s Bank of China approved the issuance of, and only issued in the interbank market, individuals can not buy, is no personal income tax-free issue exists.
addition to government bonds, financial bonds, but now there are a large number of corporate bonds in circulation, for the purchase of corporate bonds, the interest income, according to the provisions of tax law to be paid 20% of personal income tax. State Administration of Taxation to the source, usually they say, corporate bonds are issued by an enterprise in accordance with legal procedures, agreed upon in the debt securities within a certain period of time. Currently, more varieties of corporate bonds, such as the National Electric Power Corporation issued bonds, issued by the Three Gorges Three Gorges Project Corporation bonds, issued by Ministry of Railways, China Railway Construction Bonds, issued by CITIC Group, CITIC bonds are corporate bonds. China’s personal income tax under the relevant provisions of law, from the personal income tax since 1980, interest income individuals to acquire corporate bonds, has been used as “interest, dividends and bonuses,” taxable items, the proportion of 20% personal income tax rate. Therefore, individual investors, whether in a market or issue corporate bonds in the secondary market to buy, after the expiration of the interest income should pay 20% of the personal income tax, taxes, interest from the institutions responsible for withholding payment on behalf of payment. In addition, corporate bonds held by individual investors in the bonds before the expiration of the transfer, according to the personal income tax law the relevant provisions of the spread generated by the transfer of income, should be “transfer of property income” to pay 20% of the taxable items of personal income tax.
The source also said, “Personal Income Tax Law” and its implementing regulations is a national legal system of the important part is to determine whether to pay personal income tax only basis. Therefore, any unit or individual can not notice whether corporate bonds should be taxed and to determine whether notice need to pay taxes. Purchase of bonds purchased to advance understanding of the type of bonds, the accrued interest is taxable personal income tax, taking full account of the secondary market risks, investment income from this calculation and decide whether to invest in order to avoid unnecessary economic losses personal .
insurance dividends taxable
present, many people purchase insurance has become a means of financial management. Guise of insurance products, property insurance, life insurance have introduced many new varieties. One of the most concern is with the investment function of insurance. Insurance salesman, and even members of the banking business, selling insurance, often in the name of tax-free signs.
a press to a certain bank deposits, the salesperson said to reporters: “You’re deposits thanks to it! deposits have little interest, but also taxes. you might as well buy the insurance it, both have insurance, also tax-free, cost-effective multi-ah! “she told reporters key recommendation of the participating insurance, participating insurers that play a role in safeguarding both, family members can get compensation for accidents; not an accident, expired insurance can be high , while dividends, insurance companies will be issued each year a dividend, no tax is payable from insurance premiums and dividends.
to experts, the insurance is still the main function of protection, the investment function is not strong, and should not put too much attention on the value of the investment. Some institutions and personnel simply take tax-free to attract business, is misleading customers. The current provisions of the insurance tax law has two main:
First, enterprises and individuals in accordance with the provisions of national or local government to extract the ratio of financial institutions designated to pay unemployment insurance, medical insurance and pension insurance is not included in the personal current wage and salary income, exempt from paying personal income tax; medical insurance, basic pension insurance and unemployment insurance funds into personal bank accounts by the interest income is also exempt from personal income tax. The units operate primarily by the individual is no room for regulation.
The second is to obtain insurance insurance claims, accident compensation and personal suffering tragic loss, not personal income, exempt from personal income tax.
individuals to buy investment-oriented insurance, type of insurance the dividend income, generally consists of two parts, one expired insurance, this section can be tax-free; the second is to obtain the insurance dividends or interest, not tax, it should be ” Interest, dividends, dividend “income to pay personal income tax. Personal income tax in general insurance company withheld a bonus time.
traded funds offer the largest since the beginning of the year, investment in securities market, “money market fund fever” continued to not fall, the major fund companies have issued Monetary Fund. Recently, the People’s Bank of China announced that China Industrial and Commercial Bank, Construction Bank, where they could set up a fund company, will undoubtedly further stimulate the fund boom. Monetary Fund, the current yield is generally maintained at 3%.
securities investment funds, simply, is to concentrate the funds of many investors, unity to the experts to invest in stocks, bonds and other markets, and then distribute the proceeds according to the share of investment in an investment tool. Funds can be divided into closed-end funds and two open-end funds, open-end fund can redeem cash, the current popular concern Monetary Fund is an open-end funds. Huaxia Fund Management Co., Ltd. Liu Yan, Senior Manager in the interview made the following analysis: “The main direction of the Fund are ordinary people, business and short-term regular savings passbook savings deposits, money funds aim is to become an alternative to bank savings products, ordinary people have money to change the habit of managing money deposit banks. as compared with other financial, monetary fund focused on lower risk, liquidity is good, the advantage of higher yields on ordinary people is very attractive. “China Fund Management professionals also introduced, since money funds in the face of ordinary people, and its time to give full consideration in the design of the purchase and redemption of convenience. If you want to buy money fund investors as long as the bank’s books can be easily done. Monetary Fund, when issued will be determined in the banking and securities institutions as their own dealers, investors choose the monetary fund, the bank can consignment. The procedure is simple, take the bank’s books and their own ID card, fill in personal securities account to the bank application form, the Securities card; fill in securities to buy (fund subscription/purchase) Orders, bank money from your passbook scheme will be to fund management companies account; Fund Management Company has received payment, a confirmation letter to you, subscription, purchase a success. After purchase, if you want to redeem, bring your ID card and security card to the bank to complete the redemption of a single commission. In addition, major companies have launched an online subscription and redemption, the Internet also can purchase, redeem and more convenient.
in taxation, the state in order to support and actively cultivate institutional investors, make full use of funds means to further broaden the channels of social investment, and promote the healthy stock market and stable development, developed a very favorable tax policy. For example, in income tax, the tax law, the use of fund of fund managers buying and selling stocks, bonds, income difference, temporarily exempt from corporate income tax, you can make more revenue for the allocation of funds; for individual investors purchase and redemption of units made the difference income, the sale of the stocks of personal income personal income tax is not restored prior to withhold personal income tax; investors (both individual and institutional investors) from the Fund to obtain the distribution of income to withhold personal income tax and corporate income tax. This offers great benefits for investors to buy funds do not pay personal income tax and corporate income tax, the proceeds from the fund is actually a share after-tax income. In addition, the tax law also stipulates that investors purchase and redemption of units, stamp duty temporarily. This has advantages over stock trading, reducing the expenditure of 1 ‰ of the stamp duty. What
invest in stocks to pay tax?
while the stock is a high risk high return investments may also be financial management, which require high expertise to proceed. Usually refers to trading of stocks outstanding shares of listed companies in terms of outstanding shares of listed companies, China’s tax law, investors, first of all outstanding shares of listed companies trade turnover according to the stamp duty paid 1 ‰; Secondly, when the equity of listed companies to send encounter interest rates, the need to obtain a 20% interest to pay personal income tax; Third, the difference made personal stock trading income, personal income tax for the time being.
involved in the stock and a stock option problem. The so-called stock options, according to the Ministry of Finance, State Administration of Taxation “on individual stock options from personal income tax issues,” (Cai Shui [2005] No. 35) provides that a listed company’s procedures for the award in accordance with the provisions of the Company and its holding company employees a right to be authorized to allow employees the right time in the future a specific price within a certain number of the Company to purchase shares. For example, a listed company April 1, 2005 provides for 5 years with the company’s employees, in the April 1, 2008 can follow the price of 20 yuan per share to purchase shares of the company’s stock in 2000, and April 1 The company’s stock at the market price of 25 yuan. This provision is actually a reward for employees, employee stock option plan from the benefits gained. The notice provides that such employees to obtain income tax in the company without authorization, but need to buy shares in real time, if the date of the purchase price less than the market price difference income obtained by “wages and salaries “calculate and pay personal income tax.
related to hot words: Money Tax
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