Personal income tax is directly deducted by the company when employees are paid. Employees can enjoy the special additional deduction of personal income tax, and reduce the tax payable by reducing the tax amount. For example, the employee's salary is 6000 yuan, with special additional deduction. When calculating personal income tax, these special deductions can be deducted from wages first, and then the tax payable can be calculated according to the deducted amount.
Calculation method of individual income tax:
1. Determine taxable income: the balance of wages after deducting statutory deductions such as five insurances and one gold;
2. Applicable tax rate: determine the applicable tax rate and quick deduction according to the cumulative withholding method;
3. Calculate the tax payable: multiply the taxable income by the applicable tax rate, and then subtract the quick deduction;
4. Determine the tax amount to be withheld: the tax amount to be deducted from the tax amount that has been withheld.
To sum up, the personal income tax is directly deducted by the company when paying employees' salaries, and employees are allowed to use special additional deductions to reduce the tax amount, thus effectively reducing the taxable amount. For example, an employee's monthly income is 6,000 yuan, and a special additional deduction can be deducted before tax calculation.
Legal basis:
Individual Income Tax Law of the People's Republic of China
Article 6
1. For income from wages and salaries, the taxable income shall be the balance of monthly income after deducting expenses of 3,500 yuan.
Two, individual industrial and commercial households' income from production and operation, the balance of the total income in each tax year after deducting costs, expenses and losses, is the taxable income.
Three, enterprises and institutions contracted and leased business income, with the total income of each tax year, after deducting the necessary expenses, the balance of taxable income.
Four, income from labor remuneration, royalties, property rental income, each income does not exceed 4000 yuan, minus 800 yuan; If it exceeds 4,000 yuan, 20% of the expenses will be deducted, and the balance will be taxable income.
Five, the income from the transfer of property, the balance of the income from the transfer of property after deducting the original value of the property and reasonable expenses is the taxable income.
Six, interest, dividends, bonus income, accidental income and other income, for each taxable income.
Individual donations to education and other public welfare undertakings shall be deducted from taxable income in accordance with relevant regulations of the State Council.
For taxpayers who have no domicile in China but get income from wages and salaries, and taxpayers who have domicile in China but get income from wages and salaries outside China, additional deductions can be determined according to their average income level, living standard and exchange rate changes. The applicable scope and standard of additional deduction shall be stipulated by the State Council.