Individuals whose income from real estate assets transference exceeds 120,000 yuan (15385 U.S. dollars) per year should pay personal income tax, according to the State Administration of Taxation (SAT).

A circular released by the SAT on Tuesday clearly defined the income scope of individual income tax with a minimum of 120,000 yuan per year.

According to the circular, annual individual income from labour services, franchise, personal asset lease, real estate transference, deposit interests, operating business and shares transference over 120,000 yuan should pay individual income tax.

The circular also defines the calculation standards for individual income in those sectors.

Source: Xinhua