For your present and future events, personal income tax is settled

On February 8, 2022, the State Administration of Taxation issued an announcement on the settlement and payment of comprehensive income tax for 2021, which is related to your current and future events, and the key information is as follows:

First, the income content that needs to be summarized

Resident individuals (hereinafter referred to as "taxpayers") are required to summarize the income amount of the four items of income (hereinafter referred to as "comprehensive income") such as wages and salaries, labor remuneration, authors' remuneration, and royalties obtained from January 1, 2021 to December 31, 2021 (hereinafter referred to as the tax year), but do not involve classified income such as property leases, as well as the income that the taxpayer chooses not to incorporate into the comprehensive income according to regulations.

In particular, according to Article 6 of the Implementing Regulations of the Individual Income Tax Law of the People's Republic of China (2018 Revision), the scope of individual income stipulated in the Individual Income Tax Law: (2) Income from labor remuneration refers to the income obtained by individuals engaged in labor services, including design, decoration, installation, drawing, laboratory testing, testing, medical treatment, law, accounting, consulting, lectures, translation, review, calligraphy and painting, carving, film and television, audio and video recording,、、、、 exhibitions, technical services, brokerage services, Income from agency services and other services. The scope of labor remuneration is still relatively wide, and the silver that should be paid must be paid. If it is found and fined in the future, it will not be worth the loss.

2. The content of expenses that can be deducted

Deduct 60,000 yuan of expenses, as well as special deductions, special additional deductions, other deductions determined in accordance with law, and eligible donations to public interest charitable undertakings.

Special reminder, according to Article 6 of the Individual Income Tax Law, special deductions include basic old-age insurance, basic medical insurance, unemployment insurance and other social insurance premiums and housing provident fund paid by individual residents in accordance with the scope and standards stipulated by the state; special additional deductions include children's education, continuing education, medical treatment for serious illnesses, housing loan interest or housing rent, support for the elderly and other expenses.

For pre-tax deductions that occur during the tax year and have not been declared or deducted in full, taxpayers may fill in the deductions or supplementary deductions during the annual settlement period

3. Calculation formula

The amount of tax that should be refunded or paid back = [(comprehensive income amount - 60,000 yuan - special deductions such as "three insurances and one gold" - special additional deductions such as children's education - other deductions determined according to law - eligible public welfare charitable donations) × applicable tax rate - quick deduction] - tax amount prepaid

4. Situations where it is necessary to handle annual accounts

Taxpayers shall apply for annual accounting under 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.

5. Processing time

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.

6. Handling methods

(1) Handle annual accounts on their own.

Individuals can download the personal income tax APP through the app store for online processing.

The Mini Program has a detailed introduction and operation process.

(2) Units that have been employed through employment (including units that withhold and withhold and prepay individual income tax on their labor remuneration in accordance with the cumulative withholding method, the same hereinafter). Hereinafter referred to as the unit) to handle on behalf of the unit. If the unit handles the matter on its behalf, the taxpayer shall confirm with the unit in writing or electronically before April 30, 2022, and if it is not confirmed with the unit and asks it to handle the annual accounting on its behalf, the unit shall not handle it on behalf of the employer.

(3) Entrusting tax-related professional service institutions or other units and individuals (hereinafter referred to as "trustees") to handle the matter, the taxpayer and the trustee need to sign a power of attorney.

If a taxpayer who needs to make up taxes for annual remittances fails to pay the full amount of tax after the end of the annual settlement period, the tax authorities will impose a late fee in accordance with the law and mark it in their "Individual Income Tax Payment Records".

If the amount of tax withheld is greater than the tax payable on the annual remittance, don't forget to apply for a tax refund!