I. Determination of income from labor remuneration
First of all, taxpayers need to determine the total amount of labor remuneration they get in a tax year. This includes labor remuneration obtained from various channels, such as part-time, temporary services and consulting services. It should be noted that not all income from labor remuneration needs to be taxed, and some deductible items that meet the tax law, such as labor costs and taxes, can be deducted when calculating taxable income.
Second, calculate the taxable income.
The balance of income from remuneration for services after deducting relevant expenses shall be taxable income. When calculating taxable income, taxpayers need to correctly determine the amount of each deduction item in accordance with the provisions of the tax law and declare it truthfully. If the taxpayer fails to provide complete and accurate deduction information, it may lead to inaccurate calculation of taxable income, which will further affect the final tax calculation.
Three, determine the applicable tax rate and quick deduction
According to the size of taxable income, taxpayers need to determine the applicable tax rate and quick deduction. China's personal income tax adopts progressive tax rate system, and different taxable income corresponds to different tax rates. At the same time, in order to facilitate calculation, the tax law also provides for quick deduction to simplify the calculation process of tax payable.
Four, calculate the tax payable and prepaid tax.
According to the determined tax rate and quick deduction, taxpayers can calculate the annual tax payable. Then, compare it with the tax paid in advance to determine whether it is necessary to pay back the tax or apply for a tax refund. If the annual tax payable is greater than the prepaid tax, the taxpayer needs to make up the difference; If the annual tax payable is less than the prepaid tax, the taxpayer can apply for tax refund.
5. Go through the formalities of tax refund and tax underpayment.
Finally, taxpayers need to go through the formalities of overpaying and underpaying taxes according to the requirements of the tax authorities. Including filling in relevant declaration forms, providing necessary supporting materials, paying taxes or applying for tax refund, etc. It should be noted that taxpayers should ensure that the information provided is true, accurate and complete when going through the formalities of overpaying and underpaying taxes, so as to avoid tax risks caused by information errors or omissions.
To sum up:
The final settlement of labor remuneration is a process in which taxpayers calculate the tax paid in advance according to the provisions of the tax law, determine the tax payable for the whole year, and go through the formalities of overpaying and underpaying. In the calculation process, taxpayers need to determine the income from labor remuneration, calculate the taxable income, determine the applicable tax rate and quick deduction, calculate the taxable amount and prepaid tax, and go through the formalities of overpaying and underpaying taxes. In order to ensure the accuracy and compliance of the calculation, taxpayers should understand and abide by the provisions of the tax law and provide true, accurate and complete declaration information.
Legal basis:
Individual Income Tax Law of the People's Republic of China
Article 6 stipulates: Calculation of taxable income:
(1) For the comprehensive income of individual residents, the taxable income shall be the income after deducting expenses of 60,000 yuan, special additional deductions and other deductions determined according to law.
individual income tax law of the people's republic of china rules for its implementation
Article 25 stipulates that if one or more of the income from remuneration for labor services, remuneration for manuscripts and royalties exceeds 60,000 yuan after deducting special expenses from the comprehensive income, it shall choose to declare and pay taxes to the competent tax authorities where one of the units is located; Taxpayers who are not employed or employed shall file tax returns with the competent tax authorities at their domicile or habitual residence. Taxpayers should provide information about their income, deductions, special additional deductions, other deductions determined according to law, donations, tax incentives and so on when handling the final settlement of comprehensive income. And keep it for future reference or submit it as required.