How to declare individual income tax for the year end performance salary

Reply: According to the provisions of the Notice on Issues Concerning the Adjustment of the Method of Calculating and Levying Individual Income Tax on Annual One-time Bonuses Obtained by Individuals (Guo Shui Fa [2005] No. 9), the performance salary paid by enterprises to employees is a one-time bonus for the whole year, which is suitable for the calculation method of individual income tax on annual one-time bonuses. The taxpayer who obtains a one-time bonus for the whole year shall be calculated and taxed separately as a monthly salary and salary income, and shall be withheld and paid by the withholding agent at the time of issuance according to the following tax calculation methods:

1) First, divide the annual one-time bonus obtained by the employee in the current month by 12 months, and determine the applicable tax rate and quick deduction according to its quotient. If the employee's monthly salary income is lower than the deduction amount stipulated in the tax law in the month in which the year-end one-time bonus is issued, the balance of the annual one-time bonus shall be deducted from the "difference between the employee's salary income and the deduction of expenses in the current month", and the applicable tax rate and quick deduction of the annual one-time bonus shall be determined according to the above method. (2) The annual one-time bonus obtained by the employee within the month shall be calculated and taxed according to the applicable tax rate and quick deduction determined in item (1), and the calculation formula is as follows:

1) If the employee's monthly salary income is higher than (or equal to) the deduction amount stipulated in the tax law, the applicable formula is: tax payable The employee receives a one-time bonus for the whole year in the current month Applicable tax rate - quick deduction (2) If the employee's salary income in the current month is lower than the deduction amount stipulated in the tax law, the applicable formula is: Tax payable (the difference between the employee's annual one-time bonus in the current month and the employee's salary income and the deduction of expenses in the current month) Applicable tax rate - quick deduction (3) In a tax year, This method is only allowed to be used once for each taxpayer"。

According to Article 1 of the Notice of the State Administration of Taxation on Adjusting the Methods of Calculating and Levying Individual Income Tax on Individuals Obtaining Annual One-time Bonuses (Guo Shui Fa [2005] No. 9), the annual one-time bonus refers to the one-time bonus issued to employees by withholding agents such as administrative organs, enterprises and institutions according to their annual economic benefits and comprehensive assessment of employees' annual work performance. The above-mentioned one-time bonus also includes the year-end salary increase, the annual salary and the performance salary of the units that implement the annual salary system and the performance salary method according to the appraisal situation.

If you fit this situation, then you should:

1) First, divide the annual one-time bonus obtained in the current month by 12 months, and determine the applicable tax rate and quick deduction according to its quotient.

2) The annual one-time bonus obtained by the employee within the month shall be calculated and taxed according to the applicable tax rate and quick deduction determined in paragraph (1) of this Article.

Tax payable Annual one-time bonus received by the employee in the current month Applicable tax rate Quick deduction.

The taxpayer who obtains a one-time bonus for the whole year shall be taxed as a monthly wage and salary income alone, and shall be withheld and paid by the withholding agent at the time of payment. Article 3 of the document clearly stipulates that the annual one-time bonus also includes the year-end salary increase, the annual salary system and the performance salary of the unit that implements the annual salary system and the performance salary method according to the assessment situation.

Article 6 of the Individual Income Tax Law stipulates that the calculation of taxable income: (1) The comprehensive income of a resident individual shall be the taxable income after deducting expenses of 60,000 yuan and special deductions, special additional deductions and other deductions determined in accordance with the law from the income of each tax year; (2) The income from wages and salaries of non-resident individuals shall be the taxable income after deducting the monthly income of 5,000 yuan; Income from remuneration for labor services, author's remuneration and royalties shall be taxable income based on the amount of each income.