On the issue of the implementation of the annual salary system to calculate and levy individual inco

Notice of the State Administration of Taxation on Issues Concerning the Adjustment of the Method of Calculating and Levying Individual Income Tax for Individuals Obtaining Annual One-time Bonus

Guo Shui Fa [2005] No. 9.

1. Annual one-time bonus refers to the one-time bonus issued to employees by withholding agents such as administrative organs, enterprises and institutions based on 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. �

2. 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) of this Article, and the calculation formula is as follows:

1.If the employee's monthly salary income is higher than (or equal to) the deduction amount prescribed by the tax law, the applicable formula is:

Tax payable = annual one-time bonus received by the employee in the current month Applicable tax rate - quick deduction

2.If the employee's monthly salary income 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 - the employee's salary income and the deduction of expenses in the current month) Applicable tax rate - quick deduction

3. The tax calculation method is only allowed to be used once for each taxpayer in a tax year. �

4. For units that implement the annual salary system and performance-based wages, the annual salaries and performance-based wages that individuals receive at the end of the year shall be implemented in accordance with Articles 2 and 3 of this Circular.

If you have not yet declared your salary in December, you can file a combined declaration, and if your December salary and bonus are paid in January, you can deduct it at 1600.

320000-24000) 12=24666 is greater than 20000 calculated according to the tax rate.

How much money should he still get, it depends on whether 320,000 is after-tax income or tax included.

In units that implement the annual salary system and performance-based wages, the living expenses or part of the wages obtained by individuals on a monthly basis shall be calculated and paid on a monthly basis according to the income from wages and salaries.

The personal income tax rate is the ratio between the amount of personal income tax paid and the amount of tax that should be paid. The personal income tax rate is set by the corresponding laws and regulations of the state and is calculated based on the individual's income. Paying individual income tax is the obligation of citizens whose income meets the payment standard.

On August 31, 2018, the Fifth Session of the Standing Committee of the 13th National People's Congress passed the Decision on Amending the Individual Income Tax Law of the People's Republic of China, increasing the monthly individual income tax exemption from 3,500 yuan to 5,000 yuan. It will be implemented on January 1, 2019.

Note: The new IIT Law will come into force on January 1, 2019, and the latest exemption amount and tax rate will come into effect on October 1, 2018. The new IIT Law stipulates that from October 1, 2018 to December 31, 2018, the income from wages and salaries of taxpayers shall be calculated and paid on a monthly basis after deducting expenses of 5,000 yuan from the monthly income and the balance of special deductions and other deductions determined in accordance with the law, and the tax shall be calculated and paid on a monthly basis in accordance with the individual income tax rate table (applicable to comprehensive income), and no additional deduction expenses shall be deducted.

There are two scenarios for calculating personal income tax on an annual basis:

The first is the comprehensive income of individual residents. Individual income tax shall be calculated on an annual basis for the comprehensive income obtained by resident individuals; If there is a withholding agent, the withholding agent shall withhold and pay the tax on a monthly or per-time basis; If it is necessary to handle the final settlement, the final settlement shall be made within March 1 to June 30 of the following year in which the income is obtained.

The second is business income. If the taxpayer obtains the business income, the individual income tax shall be calculated on an annual basis, and the taxpayer shall submit the tax return to the tax authorities within 15 days after the end of the month or quarter, and pay the tax in advance; The final settlement shall be completed before March 31 of the following year in which the income is obtained.

Employees in the annual salary system are calculated in the same way as the calculation method of monthly calculation, the first difference of the monthly salary system employees will allocate their personal income to the monthly individual income tax payment, and the annual salary is a one-time calculation of the corresponding individual income tax when the annual salary is paid. The annual one-time bonus obtained by the employee within the month shall be taxed according to the determined applicable tax rate and quick deduction, and the specific calculation methods are as follows:

1. If the monthly salary income of the orange peel fruit employee is higher than (or equal to) the deduction amount stipulated in the tax law, the applicable formula is:

Individual income tax payable = annual one-time bonus obtained by the employee in the current month Applicable tax rate - quick deduction;

2. If the employee's monthly salary income is lower than the deduction amount stipulated in the tax law, the applicable formula is:

Individual income tax payable = (the difference between the employee's annual one-time bonus in the current month - the employee's salary income and the deduction amount of expenses in the current month) Applicable tax rate - quick deduction.

According to the notice of the State Administration of Taxation on adjusting the method of calculating and levying individual income tax on the annual one-time bonus obtained by individuals (Guo Shui Fa No. 9 2005), the annual salary of the unit that implements the annual salary system shall be calculated and paid according to the provisions of the annual one-time bonus, that is, the living expenses or part of the salary obtained by the individual shall be calculated and paid on a monthly basis according to the income from wages and salaries. At the end of the year, the applicable tax rate and quick deduction shall be determined according to the quotient of the part of the cashed shortfall divided by 12 months (if the employee's monthly salary income is lower than the expense deduction amount stipulated in the tax law in the month in which the annual salary is paid, the applicable tax rate and quick deduction shall be determined by deducting the "difference between the employee's monthly salary income and the deduction of expenses" of the annual salary). Then the annual salary part cashed out at the end of the year is calculated separately as a month's salary for individual income tax

If the employee's salary income in the current month is higher than (or equal to) the deduction amount of expenses stipulated in the tax law, the tax payable The annual salary of the employee in the current month The applicable tax rate - quick deduction; If the employee's monthly salary income is lower than the deduction amount stipulated in the tax law, the applicable tax rate (the difference between the employee's annual salary in the current month - the employee's salary income and the deduction of expenses in the current month) - the quick deduction.

For example, Zhang San's annual salary is 300,000 yuan, and the company usually pays a salary of 5,000 yuan, and the difference should be made up at the end of the year is 240,000 yuan. Then Zhang San should pay personal income tax every month = (5000-3500) 3% = 45 yuan.

The annual salary of 240,000 yuan cashed at the end of the year is divided by 12 months, and the corresponding applicable tax rate that should be confirmed is 25%, and the quick deduction is 1,005 yuan. Therefore, the individual income tax payable in the month of annual salary redemption = 45 + 240000 25% - 1005 = 59040 yuan. If Zhang San usually only receives 3,000 yuan, he should make up the difference of 264,000 yuan in the middle of the year.

Then Zhang San should pay 0 yuan of personal income tax every month. Because the monthly salary income of 3,000 yuan from the cash of Zhang's three-year salary is lower than the deduction of 3,500 yuan stipulated in the tax law, the corresponding balance shall deduct the difference from the annual salary to determine the applicable tax rate, that is, (264,000-500) divided by 12 months, the corresponding applicable tax rate that should be confirmed is 25%, and the quick deduction is 1,005 yuan. Therefore, the personal income tax payable in the month when the three-year salary is cashed = (264000-500) 25%-1005=64870 yuan.

The annual salary system is implemented, and the tax calculation method is only allowed to be used once for each taxpayer in a tax year. If the annual salary is paid in installments, it can only be allowed to calculate the individual income tax in accordance with the above provisions at one time, and the annual salary paid in other months will be combined with the salary and salary income of the current month, and Jiqin shall pay individual income tax in accordance with the provisions of the tax law.

The income from wages and salaries of non-resident individuals shall be taxable income based on the balance of the monthly income after deducting expenses 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. Calculation of taxable income under Article 6 of the Individual Income Tax Law of the People's Republic of China: (1) The comprehensive income of a resident individual shall be the taxable income after deducting expenses of 60,000 yuan from the income of each tax year, as well as special deductions, special additional deductions and other deductions determined in accordance with the law.

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. (3) The business income shall be the taxable income after deducting costs, expenses and losses from the total income of each tax year. (4) Where the income from property lease does not exceed 4,000 yuan each time, 800 yuan shall be deducted from expenses; If the amount is more than 4,000 yuan, 20% of the expenses shall be deducted, and the gross balance shall be the taxable income.

5) The income from the transfer of property shall be the taxable income after deducting the original value of the property and reasonable expenses from the amount of income from the transfer of property. (6) Income from interest, dividends, bonuses and incidental income shall be taxable income based on the amount of each income. The income from remuneration for labor services, author's remuneration and royalties shall be the balance of the income after deducting 20% of the expenses.

The amount of income derived from author's remuneration is reduced by 70%. Individuals who donate their income to public welfare charitable undertakings such as education, poverty alleviation, and poverty relief may deduct from their taxable income if the donation amount does not exceed 30% of the taxable income declared by the taxpayer; Where it is stipulated that donations to public welfare and charitable undertakings shall be deducted in full before tax, such provisions shall prevail. The special deductions provided for in Item 1 of the first paragraph of this Article include social insurance premiums such as basic endowment insurance, basic medical insurance, unemployment insurance, and housing provident fund paid by individual residents in accordance with the scope and standards prescribed by the state; Special additional deductions, including expenses such as children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, and support for the elderly, shall be determined by *** and reported to the Standing Committee of the National People's Congress for the record.

Paragraph 1 of Article 2 of the Individual Income Tax Law of the People's Republic of China The following personal income shall be subject to individual income tax: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from author's remuneration; (4) Income from royalties; (5) Business income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from the transfer of property; (9) Incidental gains.

The method of calculating individual income tax on wages and salaries: the amount of withholding and withholding tax in the current period = (cumulative amount of taxable income withheld and withheld, withholding rate - quick deduction) - cumulative tax reduction and exemption amount - cumulative withheld and withheld tax; Cumulative withholding and prepayment of taxable income = cumulative income - cumulative tax-exempt income - cumulative deduction of expenses - cumulative special deduction - cumulative special additional deduction - cumulative other deductions determined in accordance with the law.

Paragraph 1 of Article 2 of the Individual Income Tax Law of the People's Republic of China The following items of personal income shall be subject to individual gross income tax: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from author's remuneration; (4) Income from royalties; (5) Business income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from the transfer of property; (9) Incidental gains.