1. Is interest income from savings deposits exempt from individual income tax?
Answer: According to the "Notice of the Ministry of Finance and the State Administration on the Policy of Individual Income Tax on Interest Income from Savings Deposits" (CaiShui [2008] No. 132) and the "Notice of the State Administration on Doing a Good Job in Temporarily Exempting Individual Income Tax on Interest Income from Savings Deposits" (GuoShuiHan [2008] No. 826), starting from October 9, 2008, individual income tax on interest income from savings deposits will be temporarily exempted. That is: interest tax has been temporarily exempted since October 9, 2008. The interest tax is calculated in segments for exemption or collection. For interest accrued on residents' savings deposits before October 31, 1999, no individual income tax is levied; for interest accrued between November 1, 1999, and August 14, 2007, tax is levied at a rate of 20%; for interest accrued between August 15, 2007, and October 8, 2008, tax is levied at a rate of 5%; and for interest accrued after October 9, 2008, individual income tax is temporarily exempted.
2. Should individual income tax be levied on personal annuities paid by enterprises for individuals?
Answer: According to the "Notice of the Ministry of Finance and the State Administration on the Policy of Individual Income Tax on Basic Old-Age Insurance Premiums, Basic Medical Insurance Premiums, Unemployment Insurance Premiums, and Housing Provident Fund" (CaiShui...