el who are exempt from tax under the provisions of the relevant Laws of China;
     (9) income  exempt  from  tax  as  stipulated  in  the  international
conventions to which the Chinese Government is a party and  in  agreements
it has entered into; and
     (10) income exempt from tax with the approval of the finance department of the State Council.

Article 5
     In any of the following situations,  individual  income  tax  may  be reduced upon approval:
     (1) income derived by disabled persons, unsupported aged  persons  or members of martyr´s family;
     (2) the tax payer suffers major losses caused by disasters;
     (3) other cases in which reduction is approved by the finance department of the State Council.

Article 6
     The amount of taxable income shall be computed as follows:
     (1) for income from wages and salaries, a monthly  deduction  of  800 yuan shall be allowed for expenses and that part in  excess  of  800  yuan shall be the taxable income;
     (2) for income from  production  or  business  operation  derived  by individual industrial and commercial households, the taxable income  shall be the amount remaining from the gross income in  a  tax  year  after  the costs, expenses and losses have been deducted;
     (3) for income from contracted or leased operation of enterprises or institutions, the taxable income shall be the amount  remaining  from the gross income in a tax year after the deduction of necessary expenses;
     (4) for income  from  remuneration  for  personal  service,  author´s

remuneration, royalties and lease of property, a  deduction  of  800  yuan shall be allowed for expenses, if the amount received in a single  payment is less than 4000 yuan; for single  payments  of  4000  yuan  or  more,  a deduction of 20% shall be allowed for expenses. The remaining amount after the deduction shall be the taxable income;
     (5) for income from transfer of property, the taxable income shall be the amount remaining from the gross transfer income  after  deducting  the original value of the property and reasonable expenses;
     (6) for interest, dividends, bonuses,  contingent  income  and  other income, the taxable income  may  be  the  full  amount  received  in  each payment.
     The part of individual income donated to educational and other public welfare undertakings shall be deducted from the taxable income in accordance with the relevant regulations formulated by the State Council.
     For the tax payer who have no domicile in China but derive wages and salaries from sources within China, or have domicile in China  but  derive wages and salaries from sources outside China,  the  additional  deduction  for expenses shall be allowed on the basis of the average income level,
living standard and the changes of exchange rates. The scope of application and amount of the additional deduction for expenses  shall  be regulated by the State Council.

Article 7
     Income tax paid to foreign tax authorities by the taxpayer on income derived from sources outside China shall be allowed as credit against the amount of income tax payable. The creditable amount, however, shall not exceed the amount of tax otherwise payable under this Law in respect of the income derived from the sources outside China.

Article 8
     For individual income tax, the income earner shall  be  the  taxpayer and the  paying  unit  or  individual  shall  be  the  withholding  agent. Taxpayers that receive wages or salaries  from  two  or  more  payers,  or taxpayers without withholding agent, shall file tax returns  and  pay  tax themselves.

Article 9
     The tax withheld by the withholding agent on monthly basis,  and  th