Why do you have to subtract the quick deduction from the amount of personal income tax payable?

The amount of individual income tax payable is called minus the quick deduction because under the condition of excess progressive tax rate, as long as this constant is subtracted, it is equivalent to the tax payable calculated by the excess progressive method.

When using the progressive tax rate for excess tax calculation, it is a data that simplifies the calculation of tax payable. The quick deduction is actually a constant that the tax payable at the full progressive tax rate is more than the tax payable at the excess progressive tax rate under the condition that the bracket and tax rate remain unchanged.

Quick deduction is a simple calculation method for calculating the excess progressive tax category in the tax revenue, and the quick deduction is to list the pre-determined (calculated and determined, prescribed) deductions at each level of tax rate in the calculation of the excess progressive tax. The quick deduction in the income of wages and salaries of individual income tax is also the difference between the amount calculated according to the full progressive tax rate and the amount calculated according to the excess progressive tax rate, so as to reduce the trouble of calculating according to the excess progressive tax rate, so as to convert the excess progressive calculation model into the full progressive calculation model.

Quick deduction refers to a data calculated in advance to solve the complex technical problem of calculating the tax amount in excess progressive tax rate grading. The tax calculation feature of the excess cumulative tax rate is that the total taxable amount is divided into several levels, and each level is levied according to the corresponding tax rate, and the calculation of the tax amount is more complicated. A simple way to calculate this is to first tax the entire taxable amount at the highest applicable rate, then subtract the quick deductions, and the balance is the excess progressive tax rate.

The quick deduction is the difference between the amount of tax calculated at the full progressive rate and the amount of tax calculated at the excess progressive rate.

Article 3 of the Individual Income Tax Law of the People's Republic of China The tax rate of individual income tax:

1) For comprehensive income, an excess progressive tax rate of 3% to 45% shall be applied (the tax rate table is attached);

2) For business income, an excess progressive tax rate of 5% to 35% shall be applied (the tax rate table is attached);

3) Income from interest, dividends and bonuses, income from property leases, income from property transfer and incidental income shall be subject to a proportional tax rate of 20%.

Since the quick deduction is calculated at the full progressive tax rate, the deduction is not decelerated when calculating the amount of income due. That is to say, only when the corresponding requirements are met, the deceleration is required to calculate the deduction.

Calculation of taxable income according to Article 6 of the Individual Income Tax Law of the People's Republic of China:

1) The comprehensive income of individual residents shall be the taxable income after deducting 60,000 yuan of expenses and special deductions, special additional deductions and other deductions determined in accordance with the law in 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.

3) The taxable income shall be the balance of the total income of each tax year after deducting costs, expenses and losses.

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 will be deducted, and the balance shall be the taxable income.

5) Income from the transfer of property shall be the taxable income after deducting the original value of the property and reasonable expenses from the income from the transfer of property.

6) Interest, dividends, bonuses and incidental income shall be taxable with the amount of each income.

Other provisions on personal income tax.

Article 8 of the Individual Income Tax Law of the People's Republic of China shall have the right to make tax adjustments in accordance with reasonable methods under any of the following circumstances:

1) The business dealings between an individual and its related parties do not comply with the arm's length principle and reduce the tax payable by the individual or its related party without justifiable reasons;

2) Enterprises established in countries (regions) where the actual tax burden is obviously low and which are controlled by individual residents, or jointly controlled by individual residents and resident enterprises, do not distribute or reduce the distribution of profits that should be attributable to individual residents without reasonable business needs;

3) The implementation of other arrangements that do not have a reasonable commercial purpose and obtain improper tax benefits.

If the tax authorities make tax adjustments in accordance with the provisions of the preceding paragraph and need to make additional taxes, they shall make up the taxes and charge additional interest in accordance with the law.

The above content refers to the State Administration of Taxation - Individual Income Tax Law of the People's Republic of China.

The calculation method of individual income tax is as follows: taxable income = amount of salary income - social insurance premiums for each difficult chain item - tax threshold (5,000 yuan); Tax payable = taxable income x tax rate Quick deduction Article 1 of the Notice of the State Administration of Taxation of the Ministry of Finance on Issues Concerning the Application of Individual Income Tax Deduction Fees and Tax Rates in the Fourth Quarter of 2018, on the Application of Deduction Fees and Tax Rates to Income from Wages and Salaries For the wages and salaries actually obtained by taxpayers after October 1, 2018 (inclusive), the deduction of expenses shall be uniformly implemented at 5,000 yuan per month, and the tax payable shall be calculated in accordance with Table 1 of the individual income tax rate attached to this notice. For the income from wages and salaries actually obtained by taxpayers before September 30, 2018 (inclusive), the deduction of expenses shall be implemented in accordance with the provisions before the revision of the tax law.

Article 1 of the Notice on Issues Concerning the Application of Individual Income Tax Deduction Fees and Tax Rates in the Fourth Quarter of 2018 Regarding the application of deduction fees and tax rates to wages and salaries, the deduction of expenses for the wages and salaries actually obtained by taxpayers after October 1, 2018 (inclusive) shall be uniformly implemented at 5,000 yuan per month, and the tax payable shall be calculated in accordance with Table 1 of the individual income tax rate attached to this notice. For the income from wages and salaries actually obtained by taxpayers before September 30, 2018 (inclusive), the deduction of expenses shall be implemented in accordance with the provisions of the tax law before the revision of the burner mold.

The calculation of the quick deduction of individual income tax is: taxable income = salary income amount - various social insurance premiums - tax threshold (5,000 yuan); Tax payable = taxable income x tax rate Quick deduction. Article 1 of the Notice on Issues Concerning the Application of Individual Income Tax Deduction Fees and Tax Rates in the Fourth Quarter of 2018 has relevant provisions on this.

Article 1 of the Notice on the Application of Individual Income Tax Deduction Fees and Tax Rates in the Fourth Quarter of 2018 Regarding the application of deduction fees and tax rates to wages and salaries, the deduction of expenses for wages and salaries actually obtained by taxpayers after October 1, 2018 (inclusive) shall be implemented in accordance with 5,000 yuan per month, and the tax payable shall be calculated in accordance with Table 1 of the individual income tax rate attached to this notice. For the income from wages and salaries actually obtained by taxpayers before September 30, 2018 (inclusive), the deduction of expenses shall be implemented in accordance with the provisions before the amendment of the Tax Law.