The year end bonus is too high, is there a way to pay less tax?

Year-end bonus you can declare according to the two aspects of employee remuneration and year-end bonus, and the total amount of control declaration declared by each will be a little less, I have used this method before.

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

If you want to adjust the year-end bonus, the way is actually relatively simple.

According to the current tax law, before December 31, 2021, the year-end bonus can be taxed together with wages and salaries, or it can be taxed separately. According to this principle, the purpose of paying less tax can be achieved.

For example, the taxable income of the annual salary income is 120,000 yuan (excluding the three insurances and one housing fund, special deductions, and tax exemption threshold), and the year-end bonus is 80,000 yuan. If it is taxed separately, the tax amount of wages and salaries is 120,000 * 10% - 2520 = 9480 yuan, and the year-end bonus is 80,000 * 10% - 2520 = 3480 yuan, and the total tax paid: 12960 yuan.

If it is a consolidated tax, it is (12 + 8) * 20% - 16920 = 23080 yuan, and the latter is overpaidYuan.

Legal analysis: According to the laws of our country, how much you need to pay taxes.

Legal basis: Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Convergence of Relevant Preferential Policies after the Revision of the Individual Income Tax Law

1. The policy on the annual one-time bonus, the annual performance salary of the person in charge of the enterprise, the deferred cashing of income and the tenure reward.

1) If an individual resident obtains an annual one-time bonus, the amount obtained by dividing the annual one-time bonus income by 12 months shall be calculated and levied in accordance with the notice of the State Administration of Taxation on adjusting the method of calculating and levying individual income tax for individuals obtaining annual one-time bonus (Guo Shui Fa 2005 No. 9), before December 31, 2021, it shall not be included in the comprehensive income allowance of the current year, and the amount obtained by dividing the annual one-time bonus income by 12 months shall be in accordance with the comprehensive income tax rate table (hereinafter referred to as the monthly tax rate table) after monthly conversion attached to this notice. Determine the applicable tax rate and quick deductions, and calculate the tax separately. It is calculated as follows:

Tax payable Annual one-time bonus income Applicable tax rate Quick calculation deduction Resident individuals who obtain a one-time bonus for the whole year can also choose to incorporate it into the comprehensive income of the current year to calculate and pay taxes. From January 1, 2022, the annual one-time bonus obtained by resident individuals shall be included in the comprehensive income of the current year for calculation and payment of individual income tax.

2) If the person in charge of the enterprise obtains the annual performance salary deferred cash income and tenure reward, in accordance with the provisions of the notice of the State Administration of Taxation on the collection of individual income tax on the annual performance salary deferred cash income and tenure reward of the person in charge of the enterprise (Guo Shui Fa No. 2007 No. 118), before December 31, 2021, it shall be implemented with reference to Article 1 (1) of this notice; The policy after January 1, 2022 will be clarified separately.