Personal income tax
1. Concept of personal income tax
Personal income tax is a tax levied on various taxable incomes obtained by individuals (natural persons). . The "Individual Income Tax Law of the People's Republic of China" was promulgated by the Standing Committee of the Eighth National People's Congress on October 31, 1993, and came into effect on January 1, 1994. The State Council promulgated the "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China" on January 28, 1994
II. Characteristics of Personal Income Tax
Characteristics of Personal Income Tax:
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1. Implement classified collection;
2. Use both progressive tax rate and proportional tax rate;
3. Wider deduction amount;
4 , easy to calculate;
5. Two collection methods are adopted: withholding at source and self-declaration.
3. Taxpayers of personal income tax
Personal income tax refers to those who have a domicile in China, or have no domicile but have lived in the country for one year, and those who have no domicile and do not live in China or Individuals who have lived in China for less than one year but have income from China. Including Chinese citizens, individual industrial and commercial households, foreign individuals, etc.
IV. Personal income tax is taxable
Personal income tax is taxable on the taxable income obtained by individuals. The Personal Income Tax Law lists 11 items of personal income that are subject to taxation, specifically including:
(1) Income from wages and salaries Wages and salary income
refer to the income earned by an individual due to his or her employment Wages, salaries, bonuses, year-end salary increases, labor dividends, allowances and other income related to office or employment.
(2) Production and business income of individual industrial and commercial households
Income from production and business operations of individual industrial and commercial households refers to:
1. Individual industrial and commercial households are engaged in industry, handicrafts, construction, transportation, commerce, food industry, service industry, repair Income obtained from production and operation of businesses and other industries;
2. Income obtained by individuals who have obtained licenses with approval from relevant government departments and engaged in running schools, medical care, consulting and other paid service activities;
< p> 3. Income obtained by other individuals from individual industrial and commercial production and operations;4. Various taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.
< p> (3) Income from contracted operations and leasing operations to enterprises and institutions Income from contracted operations and leasing operations to enterprises and institutionsrefers to income obtained from individual contracting operations, leasing operations, and subcontracting and subletting Income includes income in the nature of wages and salaries that individuals receive on a monthly or per-time basis.
(4) Income from labor remuneration Income from labor remuneration
refers to individuals engaged in design, decoration, Installation, drawing, laboratory testing, medical care, law, accounting, consulting, lecturing, news, broadcasting, translation, review, writing, engraving, film and television, performances, performances, advertising, exhibitions, technical services, introduction services, brokerage services, Income from agency services and other labor services.
(5) Income from author remuneration Income from author remuneration
refers to the income obtained by an individual from the publication or publication of his works in the form of books, newspapers and periodicals.
(6) Income from royalties Income from royalties
refers to the income obtained by individuals by providing the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises; by providing the right to use copyrights Income does not include royalties.
(7) Interest, dividends, and bonus income
Interest, dividends, and bonus income refer to the interest, dividend, and bonus income obtained from individuals owning debts and equity.
(8) Income from property leasing
Income from property leasing refers to the income obtained by individuals from leasing buildings, land use rights, machinery and equipment, vehicles and ships, and other properties.
(9) Income from property transfer
Income from property transfer refers to the income obtained by individuals from the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles, ships and other properties.
(10) Accidental income
Accidental income refers to an individual’s winnings, prizes, lotteries and other incidental income.
(11) Other income
Other income refers to other income determined to be taxable by the financial department of the State Council.
5. Personal income tax rate
See income tax rate
6. Calculation of personal income tax
(1) Wage and salary income Calculation
Taxable amount = taxable income × applicable tax rate - quick calculation deduction
Wage and salary income is the balance after deducting a fixed amount of 880 yuan from personal monthly income. is taxable income. However, for taxpayers who do not have a residence in China but obtain wages and salaries in China, and taxpayers who have residence in China and obtain wages and salaries outside China, the tax law determines that an additional deduction of RMB 3,200 is taxable. Amount of income.
(2) Calculation of income from production and operation of individual industrial and commercial households
For individual industrial and commercial households engaged in production and operation, their taxable income is the total income of the first tax year, less The balance after excluding costs, expenses and losses, the calculation formula is:
Taxable income = total income - (cost + expense + loss)
(3) For enterprises and institutions Calculation of income from contracting and leasing operations
Five-level progressive tax rates are applicable to the income from contracting and leasing operations of enterprises and institutions, and the tax payable is calculated based on the taxable income based on the applicable tax rate. The calculation formula is:
Taxable amount = taxable income × applicable tax rate - quick calculation deduction
The "taxable income" in the formula is the taxpayer's tax rate for each tax year The balance of the total income after deducting necessary expenses. The tax law stipulates that "deducting necessary expenses" means deducting 800 yuan per month.
(4) Calculation of remuneration for labor services
Remuneration for labor services is subject to a proportional tax rate of 20%, and the formula for calculating the tax payable is: tax payable = taxable income × applicable tax rate formula The "taxable income" in "Taxable Income" refers to the income obtained by the taxpayer each time on the day, and the balance after dividing the prescribed expenses by a fixed amount or a fixed rate. If the annual income does not exceed 4,000 yuan, a fixed amount of 800 yuan will be deducted; if the first income is more than 4,000 yuan, a fixed rate of 20% of the expenses will be deducted.
(5) Calculation of author remuneration income
A 20% proportional tax rate is applicable to author remuneration income, and a 30% tax reduction is required according to regulations. The calculation formula is:
Tax payable=taxable income×applicable tax rate×(1-30%)
The "taxable income" in the formula is the income obtained by the taxpayer each time, a fixed amount or a fixed rate The balance after deducting specified fees. If the annual income does not exceed 4,000 yuan, a fixed amount of 800 yuan will be deducted; if the first income is more than 4,000 yuan, a fixed rate of 20% of the expenses will be deducted.
(6) Calculation of Royalty Income
Royalty income is subject to a proportional tax rate of 20%, and the calculation formula for the tax payable is:
< p> Taxable amount = taxable income × applicable tax rateThe "taxable income" in the formula is the income obtained by the taxpayer each time on the day, the balance after dividing the prescribed expenses by a fixed amount or a fixed rate. If the annual income does not exceed 4,000 yuan, a fixed amount of 800 yuan will be deducted; if the first income is more than 4,000 yuan, a fixed rate of 20% of the expenses will be deducted.
(7) Calculation of interest, dividends, and bonus income
Interest, dividends, and bonus income are subject to a proportional tax rate of 20%, and the calculation formula for the tax payable is tax payable = The "taxable income" in the formula of taxable income (each income) × applicable tax rate is the amount of income obtained by the taxpayer each time, and no expenses may be deducted from the income.
(8) Calculation of property leasing income Property leasing income is subject to a proportional tax rate of 20%, and the calculation formula for the tax payable is:
Tax payable = taxable income × Applicable tax rate
The "taxable income" in the formula is the income obtained by the taxpayer each time, and the balance after dividing the fixed amount or fixed rate by prescribed expenses. If the annual income does not exceed 4,000 yuan, a fixed amount of 800 yuan will be deducted; if the first income is more than 4,000 yuan, a fixed rate of 20% of the expenses will be deducted.
(9) Calculation of income from property transfer
Income from property transfer is subject to a proportional tax rate of 20%, and the calculation formula for the tax payable is:
Should Tax amount = taxable income × applicable tax rate
The "taxable income" in the formula is the income obtained by the taxpayer each time the property is transferred, minus the original value of the property and reasonable expenses.
(10) Calculation of incidental income
Incidental income is subject to a proportional tax rate of 20%, and the formula for calculating the tax payable is:
Tax payable = Taxable income × applicable tax rate
Taxable amount = taxable income (each income amount) × applicable tax rate
The "taxable income" in the formula is the taxpayer No expenses will be deducted from each income earned.
(11) Calculation of other income
Other income is subject to a proportional tax rate of 20%. The formula for calculating the tax payable is:
Tax payable = taxable income × 20%
The "taxable income" in the formula is the taxpayer's income each time Forehead.
7. Tax Preferences for Personal Income Tax
See Tax Preferences for Personal Income Tax
8. Collection and Management of Personal Income Tax
Personal income tax adopts There are two tax payment methods: withholding tax at source and self-declaration. The income earner is the taxpayer, and the unit or individual who pays the income is the withholding agent. If wages and salaries are obtained from two or more places and are subject to withholding obligations, taxpayers shall declare and pay taxes on their own. The monthly taxes deducted by the withholding agent and the monthly taxes payable by self-declaring taxpayers should be paid to the state treasury within seven days of the following month, and tax returns should be submitted to the tax authorities.
The role of personal income tax: Personal income tax can be used as an important economic tool to add a lever to appropriately adjust unfair income distribution