On February 9, the State Administration of Taxation issued an announcement that from March 1, 2022 to June 30, 2022, resident individuals who meet the relevant regulations need to handle the settlement and payment of comprehensive income of individual income tax in 2021.
According to the announcement, after the end of the 2021 fiscal year, resident individuals need to summarize the income from the four items of wages and salaries, labor remuneration, author remuneration, royalties, etc. obtained from January 1, 2021 to December 31, 2021, after deducting 60,000 yuan of expenses, as well as special deductions, special additional deductions, other deductions determined according to law, and eligible public welfare charitable donations, apply the comprehensive income tax rate and subtract the quick calculation deduction, calculate the final tax payable in the annual tax, and then subtract the amount of tax paid in advance in the tax year. If the amount of tax that should be refunded or reimbursed is obtained, it shall be declared to the tax authority and the tax refund or tax shall be processed.
The annual remittance processing period is from March 1 to June 30, 2022. Taxpayers who are not domiciled in China leave China before March 1 can apply for annual accounting before leaving China.
Under what circumstances do I need to apply for an annual account?
So, under what circumstances does the taxpayer need to apply for the annual settlement of comprehensive income of individual income tax?
According to the announcement, taxpayers are required to apply for annual accounts in any of the following circumstances.
(1) Where the amount of tax already prepaid is greater than the amount of tax payable in the annual foreign exchange and the application for a tax refund is applied for;
(2) The comprehensive income obtained during the tax year exceeds 120,000 yuan and the amount of tax that needs to be supplemented exceeds 400 yuan.
Where the application of income items is wrong or the withholding agent fails to perform the withholding obligation in accordance with law, resulting in under-declaration or failure to declare comprehensive income within the tax year, the taxpayer shall handle the annual accounting in accordance with law.
State Administration of Taxation: Failure to declare and pay back taxes after the end of the settlement period will be subject to late payment fees
According to reports, the 2021 annual tax is the third time after the reform of the individual income tax system combining comprehensive and classification, from the first two handling situations, the vast majority of taxpayers can handle it truthfully according to law, a considerable number of taxpayers have enjoyed the dividends of individual tax reform by applying for tax refunds through the annual tax settlement, and there are also many taxpayers who have supplemented the income that the tax department has not mastered, and handled the annual tax declaration and payment. At the same time, the tax department also found that there were a small number of taxpayers, who still did not declare truthfully after repeated reminders from the tax authorities.
The relevant person in charge of the State Administration of Taxation said that for taxpayers who need to make up taxes for annual accounts, if they fail to declare and pay back taxes after the end of the annual settlement period, the tax department will charge late fees in accordance with the law and mark them in their "Individual Income Tax Payment Records". For tax-related amounts that are relatively large, the tax department will carry out reminders, supervise and rectify those that have not been corrected or not corrected after the reminder, conduct interviews and warnings for those who are still not corrected or are not in place, file cases and audits in accordance with the law that still do not cooperate with rectification after the interview and warning, and publicly expose those cases that have serious circumstances and bad impact on the selection of cases filed.
Source: State Administration of Taxation website, integrated CCTV news client
Producer: Yu Weiya
Editors: Zhou Zhe, Wang Yixuan
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