What are the aspects of the personal income tax revision

Question] What are the main changes in the implementation regulations of the new Individual Income Tax Law compared with the old tax law? The answer includes four aspects: First, the standard for deducting expenses has been increased from 3,500 yuan per month to 5,000 yuan per month; Second, the structure of the wage income tax rate has been adjusted from 9 to 7, the two tax rates of 15% and 40% have been abolished, and the lowest tax rate has been reduced from 5% to 3%; Third, the income tax rate of production and operation income of individual industrial and commercial households and contracted and leased operations has been adjusted; Fourth, the tax payment period has been changed from 7 days to 15 days.

Through the above-mentioned four amendments, the tax burden of low- and middle-income earners has been greatly reduced, the adjustment of high-income earners has been appropriately increased, the tax burden of individual industrial and commercial households and contracted tenant operators has been reduced, and the tax declaration of withholding agents and taxpayers has also been facilitated. According to statistics, the tax reform, the monthly income of 38,600 yuan has become the critical point, the income below the critical point of taxpayers, the tax has been reduced to varying degrees (the maximum reduction of tax is 480 yuan), the income of taxpayers above the critical point, the tax has increased to varying degrees (the maximum increase in tax is 1,195 yuan). (Judging from the situation in our province, about 9 million people have had their personal income tax burdens reduced, and about 20,000 people have had their tax burdens increased.) )

Individual Income Tax Reform Programme: Establishment of a personal income and property information system.

Establish a personal income and property information system, including information on personal income and property in personal income and property, such as information on personal income and expenditures, as well as who to support, who to support, how many siblings to share, and deduction of medical expenses. The manner and outcome of obtaining information will have an impact on the reform of personal income tax, and to this end, the Ministry of Finance is trying to establish a network-wide information support network.

However, some people have said that the progress of this project is not impressive, because people are wary of the complete income level. How to dispel vigilance and how to ensure information security are all things that need to be considered.

Individual income tax reform plan: Consolidate part of the labor income into comprehensive income.

At present, there are 11 main categories of tax categories in China: income from wages and salaries; income from production and operation of individual industrial and commercial households; income from contracted and leased operations of enterprises and institutions; Income from remuneration for labor services; income from author's remuneration; royalty income; income from interest, dividends, bonuses; income from the lease of property; income from the transfer of property; Incidental gains; Other income determined to be taxed by the Ministry of Finance. Combine part of the labor income into comprehensive income, that is, merge the regular and continuous labor income such as salary income, labor remuneration, and author's remuneration into comprehensive income; Other property income, as well as temporary and incidental income, are still regarded as "classified income".

Individual income tax reform plan: deduction of education expenses per capita.

The individual income tax reform plan also includes children's education and vocational education in special additional deductions. Since most families in China have one or two children, the amount of individual income tax deduction is different. Experts said that these are per capita deductions for education expenses, and in the future, when the tax collection and management capacity is in place, it will gradually change from fixed deductions to deductions based on facts.

In the case of children's education, this means deducting as much as you actually spend; As far as vocational education is concerned, it may refer to the current provisions of enterprise income tax, and deduct it before paying enterprise income tax according to the proportion of 2 5 proportion of employee education expenses in the total income of the remaining gear.

1. Payment method of individual income tax.

In accordance with Article 9 of the Individual Income Tax Law and Article 36 of the Regulations for the Implementation of the Individual Income Tax Law, if a taxpayer obtains income from wages and salaries from two or more places in China, he or she shall, within 15 days of the month following the month in which the income is obtained, select and fix the in-charge local taxation authority at the place where one of the employed units is located to file a self-tax return.

When declaring, you need to fill in the "Individual Income Tax Return for Wages and Salaries with Two or More Places". After the income from wages and salaries obtained by various departments is combined, the tax payable is calculated according to the tax rate stipulated in the tax law, and the individual income tax is paid for self-declaration after being sent to the unit to pay the individual income tax withheld and paid at the time of issuance.

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.

1. The subject of the amendment to the individual income tax law may be formulated.

On June 19, 2018, the draft amendment to the Individual Income Tax Law was submitted to the third meeting of the Standing Committee of the 13th National People's Congress for deliberation, which is the seventh major overhaul of the Individual Income Tax Law since its promulgation in 1980, and will also usher in a fundamental change: the first comprehensive tax will be implemented on four types of labor income, including wages and salaries, labor remuneration, author's remuneration and royalties; The IIT threshold was raised from RMB3,500 per month to RMB5,000 per month (RMB60,000 per year); For the first time, special additional deductions such as children's education expenses, continuing education expenses, serious illness medical expenses, housing loan interest and housing rent will be increased; Optimize and adjust the tax rate structure, and expand the range of lower tax rates.

It can be seen from this that the main body that can formulate amendments to the individual income tax law is the Standing Committee of the National People's Congress.

II. Meaning of the Amendment.

Amendments are amendments to existing laws by the legislature, which can avoid re-enactment, save resources, and at the same time do not change the total number of existing laws, which is conducive to the stability of the law. All laws can be supplemented or changed by way of amendments, but mainly for codification laws.

3. Format of the amendment.

The specific format of the amendment is actually signed by the country that proposed the amendment in the upper left corner of the beginning. In the case of a friendly amendment, it is the signature of the sponsor and all drafting States; The number of signatures of the sponsoring and signatory States of the unfriendly amendment is more than 20 per cent of the participating States.

It is necessary to clearly state the serial number of the specific article to be amended in the draft resolution, and then write the content of the revised article directly after it. An amendment may amend one or more articles.

The 2018 individual income tax adjustments are:

1. The individual income tax threshold is adjusted from 3,500 yuan per month to 5,000 yuan per month;

2. For the first time, the four types of labor income, including wages and salaries, remuneration for labor services, author's remuneration and royalties, shall be subject to comprehensive tax;

3. For the first time, special additional deductions such as children's education expenses, continuing education expenses, serious illness medical expenses, housing loan interest and housing rent will be increased;

4. Some of the tax rate brackets of individual income tax have been further optimized and adjusted, expanding the Mingtong bracket of the three lower tax rates, and narrowing the bracket of the 25% tax rate, and the spacing of the three higher tax rates remains unchanged.

Article 5 of the Operational Measures for Special Additional Deduction of Individual Income Tax (for Trial Implementation) shall handle the special additional deduction for the taxpayer according to the Information Form for Special Additional Deduction of Individual Income Tax (hereinafter referred to as the "Deduction Information Table", see Annex) submitted by the taxpayer. If a taxpayer changes his or her workplace in the middle of the year, the amount of special additional deductions that he has enjoyed during his or her employment in the original employer shall not be deducted from the new employer or employer. The original withholding agent shall cease to handle special additional deductions for taxpayers from the month in which they cease to pay wages and salaries after their resignation.

For the first time, the four types of labor income, including wages and salaries, remuneration for labor services, author's remuneration and royalties, were subject to comprehensive taxation;

The threshold of individual income tax was raised from 3,500 yuan per month to 5,000 yuan per month (60,000 yuan per year);

For the first time, special supplementary bank deductions such as children's education expenses, continuing education expenses, serious illness medical expenses, housing loan interest and housing rent surplus funds were increased;

Optimize and adjust the tax rate structure, and expand the range of lower tax rates.