(1) For income from wages and salaries, the deductions include the expenditure of RMB 800 Yuan and other expenditures allowed by local governments. For income from wages and salaries earned in China by a taxpayer who has no domestic domicile and the income from wages and salaries earned in a foreign country by a taxpayer who has a domestic domicile, the deduction is RMB 800 Yuan plus an additional fee of RMB 3200 Yuan.

(2) For operation income earned by an individual business, the deduction is the cost, expenditure and loss from operations.

(3) For income from contracted management by enterprises or institutions, the deduction is the essential expenditures for each tax year.

(4) For income from labor services, author's remuneration, franchise royalties, or the lease of property, not exceeding RMB 4000 Yuan, the deduction is RMB 800 Yuan. For income exceeding RMB 4000 Yuan, the deduction is of 20% of the income.

(5) For income from property loss, the deduction item is the original value and a reasonable fee.