How to compensate for not paying personal income tax

Article 1 of the Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Levy and Exemption of Individual Income Tax on One-time Compensation Income Obtained by Individuals Due to the Termination of Labor Relations with Employers (Cai Shui (2001) No. 157 stipulates that the one-time compensation income (including severance payments, living allowances and other subsidies issued by the employer) obtained by an individual due to the termination of labor relations with the employer shall be within three times the average salary of local employees in the previous year. Exemption from personal income tax; The excess part shall be calculated and levied in accordance with the relevant provisions of the Notice of the State Administration of Taxation on Issues Concerning the Levy of Individual Income Tax on Economic Compensation Obtained for Termination of Labor Contracts (Guo Shui Fa (1999) No. 178.

Company compensation is not subject to personal income tax. The following personal income is exempt from individual income tax:

1. Prizes awarded by provincial-level people's **, *** ministries and commissions, units at or above the army level of the Chinese People's Liberation Army, as well as foreign organizations and international organizations, in the fields of science, education, technology, culture, health, sports, environmental protection, etc.;

2. Interest on treasury bonds and financial bonds issued by the state;

3. Subsidies and allowances issued in accordance with the unified provisions of the state;

4. Welfare expenses, pensions and relief funds;

5. Insurance indemnity;

6. Transfers and demobilization expenses for servicemen;

7. Settling-in allowance, retirement pay, retirement salary, retirement salary, and retirement living allowance paid to cadres and employees in accordance with the unified provisions of the state;

8. Income of diplomatic representatives, consuls** and other personnel of embassies and consulates in China who are exempt from tax in accordance with the relevant laws and regulations of the People's Republic of China;

9. Income exempted from tax as stipulated in the international conventions and agreements to which China is a party;

10. Tax-exempt income approved by the financial department.

The money for personal income tax is also paid by yourself.

Legal analysis: two situations 1, the company did not withhold and pay individual income tax to you in accordance with the regulations, that is they violated the law 2, the company calculated and paid you wages according to the after-tax salary, and the tax amount was borne by the company.

Legal basis: Law of the People's Republic of China on the Administration of Tax Collection

Article 1 This Law is enacted for the purpose of strengthening the management of tax collection, standardizing the collection and payment of taxes, safeguarding state tax revenues, protecting the legitimate rights and interests of taxpayers, and promoting economic and social development.

Article 2 This Law shall apply to the collection and administration of all kinds of taxes levied by the taxation authorities in accordance with the law.

Article 3 The initiation and suspension of taxation, as well as tax reduction, exemption, tax refund, and tax compensation, shall be implemented in accordance with the provisions of the law and the provisions of the administrative regulations formulated by the law. No organ, unit, or individual may violate the provisions of laws and administrative regulations by making decisions on tax collection, suspending, tax reduction, tax exemption, tax refund, tax compensation, or other decisions that contradict tax laws and administrative regulations.

Article 4 Units and individuals that are liable to pay taxes as stipulated by laws and administrative regulations are taxpayers. Units and individuals that are required by laws and administrative regulations to withhold and remit, collect and remit taxes on behalf of others are obligors to withhold lead. Taxpayers and withholding agents must pay, withhold, collect and remit taxes in accordance with the provisions of laws and administrative regulations.

Any citizen with an annual income of more than 120,000 yuan who does not declare and pay individual income tax in accordance with the law will face serious legal consequences.

According to the regulations for the implementation of the individual income tax law and the "Measures", if an individual obtains an income of more than 120,000 yuan within this period of a tax year, regardless of whether he has paid the individual income tax in full when he or she usually obtains various incomes, or whether he has made a self-tax declaration to the tax authorities, after the end of the year, he shall file a tax declaration with the in-charge tax authorities in accordance with the relevant provisions of the "Measures".

Legal basis: Article 1 of the Individual Income Tax Law of the People's Republic of China An individual who has a domicile in China, or who has no domicile but has resided in China for one year, shall pay individual income tax in accordance with the provisions of this Law on the income obtained from within and outside China.

Individuals who have no domicile and do not reside in China, or who have no domicile and have resided in China for less than one year, shall pay individual income tax on income obtained from China in accordance with the provisions of this Law.

Legal analysis: Paying taxes according to law is the obligation that every citizen should fulfill, and if you do not pay personal income tax, you will definitely be liable. According to the degree of violation of the law of the parties, it is necessary to pursue both administrative and criminal legal responsibility.

Legal basis: Law of the People's Republic of China on the Administration of Tax Collection

Article 63 A taxpayer who forges, alters, conceals or destroys account books or accounting vouchers without authorization, or who overlists expenses or omits or understates income in the account books, or refuses to file or makes false tax declarations after being notified by the tax authorities, or fails to pay or underpays the tax payable, shall be guilty of tax evasion. If a taxpayer evades taxes, the tax authorities shall recover the taxes not paid or underpaid, and impose a fine of not less than 50% but not more than five times the amount of taxes not paid or underpaid; where a crime is constituted, criminal responsibility is pursued in accordance with law.

If a withholding agent fails to pay or underpays the withheld or collected tax by means listed in the preceding paragraph, the tax authorities of the Youth League Bureau shall recover the tax not paid or underpaid and the late payment fine, and impose a fine of not less than 50% but not more than five times the amount of the tax not paid or underpaid; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Article 64 Where a taxpayer or withholding agent fabricates a false basis for tax calculation, the taxation authorities shall order it to make corrections within a specified period of time and impose a fine of not more than 50,000 yuan.

If a taxpayer fails to file a tax return, fails to pay or underpays the tax payable, the tax authorities shall recover the tax not paid or underpaid, and impose a fine of not less than 50% but not more than five times the amount of the tax not paid or underpaid.

Generally speaking, individual income tax is paid by the unit, that is, the unit deducts personal income from the employee's salary and pays it to the tax department. However, sometimes there is a problem with the tax system or the company's finances are wrong, and the individual income tax needs to be paid by the employee himself.

If you don't pay personal income tax, then the consequences are more disadvantageous because the tax system will blacklist you. Being blacklisted by the tax system, the credit coefficient of individuals is also affected, and they are restricted everywhere when they go to the bank for loans and handle credit-related businesses in the future. No matter what the reason, if you pay income tax, you will find the tax authorities, and the tax authorities will only recognize the system, and they will be unsympathetic to the blacklist.

Therefore, we must maintain our own credit, and the index will become more and more valuable in the future, and it will be difficult to move an inch without credit.

If the taxpayer fails to file tax returns and submit tax information within the prescribed time limit (i.e., within 3 months after the end of the tax year), the tax authorities shall order the taxpayer to make corrections within a time limit and may impose a fine of not more than 2,000 yuan; where the circumstances are serious, a fine of between 2,000 and 10,000 RMB may be imposed.

If a taxpayer fails to file a tax return, resulting in non-payment or underpayment of tax, the tax authorities shall recover the tax not paid or underpaid, and impose a fine of not less than 50% but not more than five times the amount of tax not paid or underpaid. This kind of punishment is an administrative penalty, and the degree of violation does not reach the level of the crime and does not need to be transferred to the judicial authority to be punished by the tax administrative organ.

Legal basis: According to the second paragraph of Article 64 of the Law of the People's Republic of China on the Administration of Tax Collection, if a taxpayer fails to file a tax return, resulting in non-payment or underpayment of tax, the tax authorities shall recover the tax and overdue fine, and impose a fine of not less than 50% but not more than five times the amount of tax not paid or underpaid.

In China, accounting standards mainly follow the accrual system, while the tax law stipulates that the collection of relevant taxes and fees is more based on the down payment system. Therefore, we generally make full accrual according to the accrual basis, and when the salary is paid, the enterprise fulfills the accounting entries of the withholding and payment of individual income tax. Therefore, we can pay individual income tax mainly in accordance with the accounting receipt and payment method, and pay individual income tax at the time of salary payment and declare it the next month.

1. Is it okay to have a salary without paying taxes?

Whether or not to pay tax on wages is determined according to the amount of wages, as follows:

1. When the salary reaches 5,000, personal income tax will be charged;

2. If the amount does not reach 5,000, there is no need to pay individual income tax.

The method of wage tax deduction is to be calculated by the enterprise, and withheld and paid in the past several months before the payment to the employees, and then unified to the local local taxation bureau for declaration and payment. Payroll tax deduction is equal to the taxable income for the whole month multiplied by the tax rate minus the taxable income for the whole month of the quick deduction.

2. What should I do if the company pays wages and does not pay taxes?

The individual income tax law stipulates that the wages and salaries of employees of enterprises must pay individual income tax, and the tax is withheld from the wages by the enterprise and paid to the local taxation bureau. By default, the salary given to you by the company is pre-tax, which means that the salary includes individual income tax, and the employee pays individual income tax, and the company only withholds individual income tax. The tax department will first punish the enterprise, and the timely payment of wages and the guarantee of benefits are the most effective ways to improve the enthusiasm of employees.

However, many employers do not give employees the wages and benefits they are entitled to in accordance with the law, which is an illegal act and should be punished accordingly according to the law.

3. The Inland Revenue Department does not recognize cash payroll.

The tax bureau recognizes the payment of wages in cash, as long as the individual income tax is paid in accordance with the regulations. According to the relevant regulations of the state, cash can be used to pay individual wages and various wage subsidies. However, if the enterprise pays the wages of employees in cash and then does not declare the individual income tax, then this is not allowed by the tax bureau and is a violation of the regulations.

When an enterprise pays wages in cash, it needs to deduct personal income tax and then pay it to the tax bureau on behalf of the employee.

Article 9 of the Individual Income Tax Law of the People's Republic of China on the income of wages and salaries shall be levied on a monthly basis, and shall be paid into the state treasury by the withholding agent or enterprise tax administration agent within 15 days of the following month, and the tax return shall be submitted to the state taxation administrative organ.