The 2023 IIT settlement will start on March 1, 2024. The individual income tax is about to usher in the annual "more refund and less compensation".
On February 1, the State Administration of Taxation issued an announcement on handling the 2023 annual individual income tax comprehensive income reconciliation matters, and the 2023 annual reconciliation will be processed from March 1 to June 30, 2024.
01
Who needs to apply for IIT reconciliation?
If one of the following circumstances is met, the taxpayer needs to go through the final settlement: (1) the amount of tax prepaid is greater than the tax payable in the final settlement and the taxpayer applies for tax refund, and (2) the comprehensive income obtained in 2023 exceeds 120,000 yuan and the amount of tax required for the final settlement exceeds 400 yuan.
The specific formula for calculating the IIT final settlement is as follows:
Tax refundable or payable = [(comprehensive income - 60,000 yuan - special deductions such as "three insurances and one housing fund" - special additional deductions such as children's education - other deductions determined according to law - eligible public welfare and charitable donations) ×applicable tax rate - quick deduction] - prepaid tax
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02
Further expand the scope of priority tax refund services
On the basis of the continuous optimization of tax payment services this year, the tax department has launched a series of new facilitation measures.
Among them, for taxpayers with an annual income of less than 60,000 yuan and who have prepaid individual income tax, on the basis of providing individual income tax APP and simple declaration and fast processing services on the website of the electronic tax bureau for natural persons in the previous year, priority tax refund services will be further provided to continuously improve the sense of gain of taxpayers.
At the same time, we will further expand the pre-filling service for final settlement returns. Relying on the medical expense data and personal pension data shared by the National Medical Security Administration and the Ministry of Human Resources and Social Security with the tax department, taxpayers are provided with special additional deduction information for serious illness medical treatment and personal pension information pre-filling services, so as to provide taxpayers with a better declaration experience.
In addition, the operation experience of taxpayers' individual income tax APP will be further optimized. Upgrade the version of the individual income tax APP, reconstruct the channel page, redesign the function icons, avoid the intersection of business functions, integrate the display of handling (handling) and investigation (inquiry) matters, and highlight the "to-do" prompts, so that the taxpayer experience will be more friendly.
03
The start date for tax settlement is February 21
In order to guide taxpayers to handle the final settlement in a reasonable and orderly manner and improve the taxpayers' experience, the in-charge tax authorities will notify taxpayers in batches and installments to remind taxpayers to handle the final settlement within a determined period of time.
At the same time, the tax department has launched an appointment service, and taxpayers who need to handle the final settlement in the early stage (March 1 to March 20) can make an appointment for any of the above time periods through the individual income tax app after February 21 according to their own situation. From March 21 to June 30, taxpayers do not need to make an appointment and can apply at any time.
For taxpayers who meet the conditions for final settlement and tax refund and have a heavy living burden, the tax authorities will provide priority tax refund services. The tax authorities can provide personalized and convenient services for special groups such as the elderly and those with limited mobility who have difficulty completing the final settlement independently.
RMB data map. Photo by Chinanews reporter Li Jinlei
04
What are the pre-tax deductions?
The following pre-tax deductions incurred in 2023 can be reported or supplemented during the final settlement period:
(1) Deduction of 60,000 yuan, as well as special deductions for social insurance premiums such as basic endowment insurance, basic medical insurance, unemployment insurance, and housing provident fund, which meet the requirements;
(2) Eligible additional deductions for infant and child care under the age of 3, children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, and support for the elderly;
(3) Other deductions such as eligible enterprise annuity and occupational annuity, commercial health insurance, and personal pension;
(4) Eligible donations to public welfare and charitable causes.
If a taxpayer and his or her spouse jointly fill in the special additional deductions for infant and child care, children's education, serious illness medical treatment, housing loan interest and housing rent, as well as the special additional deductions for supporting the elderly with their siblings, they need to communicate with other applicants to fill in the deduction amount to avoid filling in the special additional deductions in excess of the prescribed amount or proportion.
05
It is very important to handle the individual income tax settlement truthfully in accordance with the law
Judging from the final settlement in recent years, most taxpayers can truthfully fill in their income and deduction information and fulfill their tax obligations in accordance with the law. However, the tax department also found that a small number of taxpayers reported their income or deductions falsely or incorrectly in order to achieve the purpose of over-tax refund or under-payment of tax.
In this year's final settlement, the tax department will strengthen the supervision and reminder of taxpayers who incorrectly fill in the special additional deductions. For the situation of not filling in the special additional deduction in accordance with the regulations, such as the husband and wife each filling in the special additional deduction for children's education according to the proportion of 100%, or tampering with the certification information to enjoy the special additional deduction for serious illness medical treatment, etc., once discovered, the tax authorities will remind them through the individual income tax APP, website or withholding agent.
If a taxpayer is newly entitled to deductions or tax incentives, he or she shall fill in the relevant information and provide supporting materials. If the taxpayer refuses to make corrections or fails to explain the situation, the tax authorities will suspend the special additional deduction in accordance with the announcement of the Ministry of Finance and the State Administration of Taxation on relevant policy issues involved in the final settlement of individual income tax (No. 94 [2019]). Taxpayers can continue to enjoy special additional deductions after correcting relevant information or explaining the situation in accordance with regulations.
In addition, for taxpayers who need to pay tax in the final settlement, if they fail to declare the tax payment or fail to pay the tax in full after the end of the final settlement period, once it is discovered, the tax authorities will serve the tax documents to the taxpayer through electronic channels such as mobile individual income tax APP, website and other means in accordance with the law, order them to make corrections within a time limit, and impose a late payment penalty in accordance with the law, and mark it in the tax payment record of their individual income tax.
The tax department reminds that the majority of taxpayers are requested to truthfully handle the individual income tax settlement in accordance with the law, and be responsible for the authenticity, accuracy and completeness of the information submitted in accordance with the law. For those who have serious circumstances such as false filling in the report or tampering with supporting materials, the tax department will seriously deal with them in accordance with the law, and include them in the list of key personnel for tax supervision, and strengthen the examination of their declarations in the next three tax years;
Source: China News Network (Chief Financial Reporter: Li Jinlei)
Transferred from: China Micro New Hubei