Article 1 Personal Tax Explanation Every year, we see many people getting thousands of tax refunds after liquidation, and some people still have to pay back taxes; with questions, let’s read on! Since the promulgation of the new personal income tax law in 2019, the complicated pe

The first article on personal tax explanation

Every year, we see many people settling thousands of tax refunds, and some people still have to pay back taxes; with questions, let’s read on!

Since the promulgation of the new personal income tax law in 2019, the complicated personal income tax calculation rules have made people’s heads hurt. How is personal income tax calculated? Here we have sorted out some frequently asked questions, hoping to help everyone understand.

Question 1: Personal tax has been deducted every month, why do we need to make final settlement the following year?

According to the "Individual Income Tax Law", income earned by resident individuals from wages, salaries, labor remuneration, author remuneration, and royalties (hereinafter referred to as comprehensive income) shall be consolidated and calculated according to the tax year.
In other words, the individual taxes deducted from wages every month are only withholdings and prepaid taxes, not the final tax payable. After the final settlement of comprehensive income from March to June of the following year, the tax payable calculated based on the tax rate is the final amount. At that time, the difference between the total withheld tax and the final tax payable will be refunded or compensated.

Question 2: Why is the personal tax deducted more this month than last month? How is monthly personal tax calculated?

Is there any boss at level 4567?

Tax payable = Cumulative taxable income for the whole year * Tax rate , Among them, the tax rate increases with the increase of the cumulative taxable income for the whole year, so the monthly withholding tax will increase with the increase of the cumulative income for the whole year.
Calculation formula:
Cumulative withholding and prepayment of taxable income = Cumulative pre-tax income - Cumulative personal social security payment amount - Cumulative provident fund personal payment amount - Cumulative special additional deductions - 5000*N (month)
Preliminary payment for the current month Withheld personal tax = cumulative withholding and prepaid taxable income * tax rate - quick calculation of deductions - cumulative tax paid

Isn’t it difficult to understand!!! [呲呲] Let’s give an example pear to see. . . . . .

Laowang ’s pre-tax salary income is 15,000 yuan/month (monthly pre-tax income remains unchanged), personal social security payment is 500 yuan/month, and provident fund personal payment is 1,200 yuan/month. He has declared a professional An additional deduction - housing rent ( Ningbo : 1,500 yuan/month standard), the accumulated prepaid tax from January to April is 816 yuan. When the salary for May and June is paid, how much tax will be withheld by Laowang ?

(1) When the May salary is paid, Laowang withholds a tax of 204 yuan. The calculation process is as follows:

cumulative withholding and prepayment of taxable income = 15000*5-5 00*5-1200*5-1500*5-5000*5=34000 yuan

Personal income tax = 34000*3%-0-816=204 yuan

(2) issued in June At the time of salary, Laowang withholds a tax of 540 yuan. The calculation process is as follows:

cumulative withholding and prepayment of taxable income = 15000*6-500*6-1200*6-1500 *6-5000*6=40800 yuan

Personal income tax = 40800*10%-2520-816-204=540 yuan

Question 3. What are the special additional deductions? How to declare?

Special additional deductions include children’s education (expenses for schooling for your own children), continuing education (expenses for academic qualification improvement), serious illness medical treatment (sickness expenses), and housing loan interests You can fill in expenses such as interest or housing rent ( if you have a house purchase loan or renting a house abroad), support for the elderly ( if you have an elderly person at home who need to be supported), passport of an infant under 3 years old ( if you have children). Special additional deductions must be reported by taxpayers on the [Personal Income Tax] APP. If you find that the monthly deduction items are inconsistent with your actual situation, you can go to the Personal Tax APP to check whether the declaration has been completed or the information has been updated.

Fill in the special additional deductions

If you have any questions, you can answer them in the comment area [smile]