Paying personal income tax is an obligation that every citizen should fulfill; It can be used as proof of income and provide proof of income for loans (house purchase, car purchase, etc.). ); It can provide a basis for the labor dispute between oneself and the unit.
Benefits of paying personal income tax to the state;
(1) Increase national fiscal revenue. Collecting personal income tax can ensure stable fiscal revenue.
(2) Adjusting income distribution is helpful to realize social equity. With the development of economy, the widening gap between the rich and the poor will gradually emerge, which may become a negative factor affecting social stability. Progressive tax on personal income can reduce the degree of unfair social distribution and alleviate social contradictions.
③ It has the function of automatic stabilizer. Because personal income tax generally adopts progressive tax rate, in the period of economic prosperity, the tax increase exceeds the growth rate of personal income, which can automatically curb the inflation trend; On the contrary, during the economic depression, the rate of tax reduction is faster than that of personal income, which can prevent the trend of deflation.
As a direct tax, personal income tax helps to cultivate and enhance citizens' awareness of tax payment.
Extended data:
Overtime pay should be incorporated into wage income and taxed according to law. In a tax year, the preferential algorithm of one-time bonus is only allowed to be used once for each taxpayer.
Units set up offices in other places to recruit people from the local area. These people live in the local area, their housing situation and insurance level should meet local standards, and social wages should be calculated according to government standards.
The compensation paid to workers shall be implemented in accordance with the Notice on Exemption of Individual Income Tax from One-time Compensation Income Obtained by Individuals and Employers after Termination of Labor Relations (Caishui 1998). 157).
In the month when the year-end one-time bonus is paid, if the employee's wage income in that month is lower than the expense deduction stipulated in the tax law, the applicable tax rate and quick deduction of the one-time bonus for the whole year shall be determined in accordance with the prescribed method.