First, the bonus amount corresponds to the tax rate table.
First, determine the amount of one-time bonus for the whole year. This amount will directly determine the applicable tax rate. According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, individual income tax is subject to a progressive tax rate system, that is, the higher the income, the higher the tax rate. The amount of one-time bonus for the whole year will correspond to different tax rates.
2. Pre-tax deduction and taxable income
When calculating the taxable income, it is also necessary to consider the pre-tax deduction items stipulated in the tax law. These deductions may include some specific expenses, donations and so on. After deducting these items from the annual one-time bonus, the amount obtained is taxable income.
Third, calculate the tax payable.
According to the taxable income and the corresponding tax rate, the taxable amount can be calculated. This process includes dividing the taxable income into different tax rates, then calculating the tax amount of each part separately, and finally adding up the total personal income tax of the one-time bonus for the whole year.
Fourth, consider preferential tax policies.
When calculating the personal income tax of the one-time bonus for the whole year, it is also necessary to consider the relevant preferential tax policies that may be introduced by the state. These policies may include tax relief for certain specific groups and tax incentives for certain incomes. Taxpayers should fully understand and make rational use of these policies to reduce the tax burden.
To sum up, the calculation of individual income tax on annual one-time bonus is a process involving many factors, including bonus payment amount, tax rate table, pre-tax deduction, taxable income, tax rate and possible preferential tax policies. Taxpayers need to calculate according to the provisions of the tax law and the actual situation to ensure that the tax is paid in full and on time.
Legal basis:
Individual Income Tax Law of the People's Republic of China
Article 3 provides that:
Personal income tax rate: (1) For comprehensive income, the excess progressive tax rate of 3% to 45% is applicable; (2) The excess progressive tax rate of 5% to 35% shall apply to the operating income; (3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%.
individual income tax law of the people's republic of china rules for its implementation
Article 6 provides that:
(1) Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment; (2) Income from remuneration for labor services refers to income obtained by individuals from engaging in labor services, including design, decoration, installation, drawing, testing, medical treatment, law, accounting, consulting, lecturing, translation, manuscript review, painting and calligraphy, sculpture, film and television, audio and video recording, performance, performance, advertisement, exhibition, technical service, introduction service and brokerage service. (3) The term "income from remuneration for writing" refers to the income obtained by individuals from publishing their works in the form of books, newspapers and periodicals; (4) The term "income from royalties" refers to the income obtained by individuals from providing the right to use patents, copyrights, trademarks, non-patented technologies and other franchises; (5) Operating income means: 65,438+0. Income from individual industrial and commercial households engaged in production and operation, and income from production and operation of individual partners of sole proprietorship enterprises and partnership enterprises registered in China; 2. Individuals engaged in paid service activities such as running schools, medical care and consulting services according to law; 3. Income from contracting, leasing, subcontracting and subletting of enterprises and institutions by individuals; 4. Individuals engaged in other production and business activities; (6) Income from interest, dividends and bonuses refers to income from interest, dividends and bonuses obtained by individuals owning creditor's rights and stock rights; (7) The term "income from lease of property" refers to the income obtained by individuals from renting real estate, machinery and equipment, vehicles, boats and other property; (8) Income from property transfer refers to income obtained by individuals from transferring securities, stock rights, partnership property shares, real estate, machinery and equipment, vehicles, boats and other property; (9) Accidental income refers to personal winning prizes, winning prizes, winning lottery tickets and other accidental income. If it is difficult to define taxable income items for personal income, it shall be determined by the competent tax authorities in the State Council.