Issued by the State Administration of Taxation
About handling individual income tax for 2023
Announcement of the final settlement of comprehensive income
2023 Annual Reconciliation Processing Time
From March 1 to June 30, 2024
Friends, remember to handle it on time
Details are as follows
State Administration of Taxation
Announcement on Handling the 2023 Annual Individual Income Tax Comprehensive Income Final Settlement
Announcement No. 2 of 2024 of the State Administration of Taxation
In accordance with the relevant provisions of the Individual Income Tax Law and its implementing regulations, the Tax Collection and Administration Law and its implementation rules, the relevant matters related to the handling of the 2023 annual individual income tax comprehensive income settlement (hereinafter referred to as the final settlement) are hereby announced as follows:
1. The main content of the final settlement
After the end of 2023, resident individuals (hereinafter referred to as taxpayers) need to summarize the income from wages and salaries, labor remuneration, author's remuneration, royalties and other four comprehensive incomes obtained from January 1 to December 31, 2023, deducting expenses of 60,000 yuan and special deductions, special additional deductions, After other deductions determined in accordance with the law and eligible donations to public welfare and charitable undertakings, the individual income tax rate of comprehensive income shall be applied and the quick deduction shall be subtracted (see Annex 1 for the tax rate table) to calculate the final tax payable, and then the amount of tax prepaid in 2023 shall be subtracted to obtain the amount of tax refundable or paid, and the tax refund or tax shall be refunded or paid back to the tax authorities. The specific calculation formula 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
The final settlement does not involve the taxpayer's classified income such as property leasing, as well as the income that is not included in the comprehensive income for tax calculation according to the regulations.
2. There is no need to handle the final settlement
Taxpayers who have prepaid individual income tax in accordance with the law in 2023 and meet one of the following circumstances do not need to go through the final settlement:
(1) Where tax is required for final settlement, but the comprehensive income does not exceed 120,000 yuan for the whole year;
(2) The amount of tax to be paid for final settlement does not exceed 400 yuan;
(3) The amount of tax prepaid is consistent with the amount of tax payable in the final settlement;
(4) Those who meet the conditions for tax refund in final settlement but do not apply for tax refund.
3. Circumstances that require final settlement
If one of the following circumstances is met, the taxpayer shall apply for final settlement:
(1) The amount of tax prepaid is greater than the amount of tax payable in the final settlement and the tax refund is applied for;
(2) The comprehensive income obtained in 2023 exceeds 120,000 yuan and the amount of tax required for final settlement exceeds 400 yuan.
If the taxpayer underdeclares or fails to declare the comprehensive income in 2023 due to the error of the applicable income items or the withholding agent's failure to perform the withholding obligation in accordance with the law, the taxpayer shall handle the final settlement according to the law.
4. Pre-tax deductions that can be enjoyed
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.
Taxpayers who obtain comprehensive income and business income at the same time may declare the deduction of expenses of 60,000 yuan, special deductions, special additional deductions and other deductions determined in accordance with the law in the comprehensive income or business income, but shall not declare the deduction repeatedly.
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. If the taxpayer does not meet the requirements, once found, the tax authorities will remind them through the mobile individual income tax APP, the website of the electronic tax bureau for natural persons or the withholding agent. According to the relevant provisions of 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]), the tax authorities will suspend the special additional deduction for taxpayers who refuse to make corrections or do not explain the situation. Taxpayers can continue to enjoy special additional deductions after correcting relevant information or explaining the situation in accordance with regulations.
5. Processing time
The 2023 annual reconciliation will be processed from March 1 to June 30, 2024. Taxpayers who have no domicile in China and leave China before March 1 can apply before departure.
Sixth, the way to handle
Taxpayers can choose the following handling methods:
(1) Handle it on your own.
(2) Handle it on behalf of the employing unit (including the unit that withholds and prepays the individual income tax on its labor remuneration according to the cumulative withholding method).
If the taxpayer makes the request on behalf of the taxpayer, the unit shall handle it on behalf of the taxpayer, or train and counsel the taxpayer to complete the final settlement declaration and tax refund (supplement).
If the entity handles the application on behalf of the employer, the taxpayer shall confirm with the employer in writing or electronically in advance, and provide supplementary information and materials such as comprehensive income income, relevant deductions, and tax incentives obtained outside the unit in 2023, and be responsible for the authenticity, accuracy and completeness of the information submitted. If the taxpayer fails to confirm with the unit and asks it to handle it on its behalf, the unit shall not handle it on its behalf.
(3) Entrust a trustee (including tax-related professional service institutions or other units and individuals) to handle the matter, and the taxpayer shall sign a power of attorney with the trustee.
After the unit or trustee handles the final settlement for the taxpayer, it shall promptly inform the taxpayer of the handling situation. If a taxpayer finds that there is an error in the information in the final settlement declaration, he or she may request the unit or trustee to correct the declaration, or he or she may correct the declaration on his own.
7. Handling channels
For the convenience of taxpayers, the tax authorities provide taxpayers with efficient and fast online tax channels. Taxpayers can give priority to the final settlement through the IIT APP and website, and the tax authorities will provide taxpayers with pre-filling services for the items in the declaration form.
If the taxpayer chooses to file the declaration by mail, the taxpayer shall send the declaration form to the address announced by the tax bureau of the province, autonomous region, municipality directly under the Central Government and the city specifically designated in the state plan where the in-charge tax authorities are located as determined in accordance with Article 9 of this announcement.
8. Retention of declaration information and materials
If taxpayers need to modify their relevant basic information and add deductions or tax incentives to the taxpayers, they should also fill in the relevant information and provide supporting materials in accordance with the regulations. Taxpayers need to check carefully to ensure that the information filled in is true, accurate and complete.
Taxpayers and agencies shall retain the relevant materials such as special additional deductions and tax preferential materials for 5 years from the date of the end of the final settlement period.
Units with equity (stock) incentives (including equity incentives for employees by domestic enterprises with the equity of overseas enterprises as the target) and cash rewards for the transformation of on-the-job scientific and technological achievements shall report and file in accordance with relevant regulations. At the same time, if a taxpayer obtains equity incentives from the same unit multiple times in a tax year, the withholding tax shall be calculated by the unit on a consolidated basis. If a taxpayer obtains equity incentives from different units in a tax year, he or she may provide the relevant information of the equity incentives obtained by the previous units to the current unit and calculate and withhold the tax on a consolidated basis, or may file a consolidated declaration with the tax authorities from March 1 to June 30 of the following year.
9. The tax authorities that accept the declaration
In accordance with the principle of convenience and proximity, if the taxpayer handles the matter on its own or the trustee handles it on behalf of the taxpayer, it shall report to the in-charge tax authority of the employer where the taxpayer is employed, and if there are two or more employment units, it may choose to declare to one of them.
If the taxpayer does not hold an employment unit, it shall report to the in-charge taxation authority of the place of his/her household registration, habitual residence or main source of income. The main source of income refers to the location of the withholding agent with the largest cumulative amount of labor remuneration, author's remuneration and royalties to taxpayers in 2023.
If the unit is a taxpayer and handles the final settlement, it shall report to the in-charge tax authority of the unit.
In order to facilitate tax payment services and collection management, after the end of the final settlement period, the tax department will determine the competent tax authority for taxpayers who have not yet completed the final settlement declaration and multiple equity incentive consolidated declarations.
10. Tax refund (supplement).
(1) Tax refund
Taxpayers applying for tax refund through final settlement shall provide their eligible bank accounts opened in China. After examination and approval by the tax authorities in accordance with the regulations, the tax authorities shall handle the refund of taxes in accordance with the relevant provisions of the treasury management. If the taxpayer fails to provide his or her valid bank account, or the information provided is incorrect, the tax authorities will notify the taxpayer to make corrections, and the taxpayer shall apply for tax refund in accordance with the law after making corrections as required.
In order to facilitate the tax refund, taxpayers with an annual comprehensive income of no more than 60,000 yuan in 2023 and have prepaid individual income tax can choose to use the simple declaration function provided by the individual income tax app or website to conveniently handle the final settlement and tax refund.
Taxpayers who apply for 2023 annual reconciliation tax refund and other tax refunds shall apply for tax refund in accordance with the law after completing the 2022 and previous annual reconciliation tax payment but have not done so, or if they have been notified by the tax authorities that there are doubts in the 2022 and previous annual reconciliation declaration but have not corrected or explained the circumstances.
(2) Handling back taxes
Taxpayers who handle the final settlement and pay the tax can pay the tax through online banking, POS machine swiping card in the tax service hall, bank counters, non-bank payment institutions, etc. If the taxpayer declares and pays the tax by mail, the taxpayer shall pay attention to the progress of the declaration and pay the tax in a timely manner through the individual income tax APP and website or the tax service department of the in-charge tax authority.
If a taxpayer who needs to pay tax after the final settlement fails to declare the tax payment or fails to pay the tax in full after the end of the final settlement period, once it is found, the tax authorities will order the taxpayer to make corrections within a time limit and serve the relevant tax documents to the taxpayer in accordance with the law. At the same time, the tax authorities will impose a late payment penalty in accordance with the law and mark it in the tax record of individual income tax.
If a taxpayer overrefunds or underpays tax due to an error in filling in the declaration information, and the taxpayer takes the initiative or is reminded by the tax authorities to make corrections in a timely manner, the tax authorities may exempt the taxpayer from punishment in accordance with the principle of "no penalty for the first violation".
11. Final settlement services
The tax authorities have launched a series of service optimization measures, strengthened the policy interpretation and operation guidance of the final settlement, compiled tax guidelines by category, explained the policy caliber, professional terminology and operation process in a popular manner, carried out reminder services through multiple channels and forms, and provided tax-related consultation through channels such as the individual income tax APP and website, and the 12366 tax payment service platform to help taxpayers solve difficult problems and actively respond to taxpayers' demands.
Before the start of the final settlement, taxpayers can log in to the IIT app and website to check their comprehensive income and tax payment status, and check the basic information such as bank cards and the identity information of the persons involved in the special additional deduction, so as to prepare for the final settlement.
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.
12. Other matters
If Articles 1 and 4 of the Announcement of the State Administration of Taxation on Issues Concerning the Self-declaration of Individual Income Tax (No. 62 of 2018) are inconsistent with this announcement, this announcement shall be implemented.
According to the announcement of the Ministry of Finance, the State Administration of Taxation and the Ministry of Housing and Urban-Rural Development on Extending the Implementation of Individual Income Tax Policies Related to Supporting Residents to Replace and Purchase Housing (No. 28 of 2023), during the period from January 1, 2024 to December 31, 2025, taxpayers who sell their own housing and repurchase housing in the same city within one year after the sale of their current housing may apply for a refund of the individual income tax paid on the sale of their current housing according to the regulations. The announcement of the State Administration of Taxation on matters related to the collection and administration of individual income tax policies to support residents in the exchange and purchase of housing (No. 21 [2022]) will be implemented.
The announcement is hereby made.
Attachment: (Click "Read the original article" at the end of the article to download the attachment)
1. Individual income tax rate table (applicable to comprehensive income)
2. Individual income tax annual self-tax return (Form A, simplified version, Q&A version)
3. Individual Income Tax Annual Self-Tax Return (Form B)
State Administration of Taxation
January 31, 2024
unscramble
Interpretation of the Announcement of the State Administration of Taxation on Handling the Final Settlement of Individual Income Tax for 2023
In order to conscientiously implement the deployment of the Central Economic Work Conference, effectively safeguard the legitimate rights and interests of taxpayers, and help taxpayers successfully and standardize the completion of the 2023 annual individual income tax comprehensive income settlement (hereinafter referred to as the final settlement), the State Administration of Taxation has formulated and issued the Announcement of the State Administration of Taxation on Handling the 2023 Individual Income Tax Comprehensive Income Final Settlement (hereinafter referred to as the "Announcement") on the basis of fully listening to the opinions and suggestions of taxpayers, withholding agents, experts, scholars and the public. The interpretation is as follows:
1. What is the basic framework and main content of the Announcement?
The implementation of the new individual income tax law in 2019 marks the establishment of a comprehensive and categorical individual income tax system in mainland China. The new tax law requires that after the end of the year, taxpayers need to aggregate the four comprehensive incomes of wages and salaries, remuneration for labor services, author's remuneration and royalties for tax calculation, and go through the final settlement with the tax authorities and settle the tax refundable or payable. Thanks to the joint efforts of taxpayers, withholding agents, intermediaries, relevant departments and other sectors of society, the first four final settlements were stable and orderly, and the stability and convenience of the final settlement system have been continuously improved. Therefore, on the basis of the basic framework and main content of the previous four final settlement announcements, the Announcement further optimizes the tax service measures, and reminds the error-prone points in the final settlement, so that taxpayers can complete the final settlement more conveniently and accurately.
There are 12 articles in the Announcement. Articles 1 to 4 mainly clarify the content of the final settlement, the circumstances under which the final settlement is not required, the circumstances under which the final settlement is required, and the special additional deductions and other deductions that taxpayers can enjoy, such as pre-tax deductions; Articles 5 to 9 mainly clarify the time, methods, channels, declaration information and data retention, and the acceptance of tax authorities for the final settlement; Article 10 mainly makes specific provisions on the procedures and requirements for handling the final settlement of tax refund (supplementation); Article 11 mainly focuses on the tax payment services provided by the tax authorities, making appointments for tax processing, and Article 12 mainly clarifies the application relationship of the relevant provisions.
2. What are the main changes in the Announcement compared with previous years?
In general, the Announcement continues the framework and content of the previous final settlement announcements. The main changes are:
First, in the "Handling Methods" section of Article 6, the time for confirmation of the final settlement agency will be further extended. If the taxpayer has the need to handle the transaction, it is no longer required to confirm the entrustment relationship with the unit before April 30, so as to leave enough time for the taxpayer and the unit to handle the final settlement.
Second, in the part of Article 8 "Declaration Information and Data Retention", according to the relevant provisions of the Announcement of the Ministry of Finance and the State Administration of Taxation on Extending the Implementation of Individual Income Tax Policies Related to Equity Incentives of Listed Companies (No. 25 of 2023), the separate taxation policy for equity incentives has been extended to the end of 2027. In line with the principle of facilitating the operation of taxpayers, the Announcement further clarifies the method, time and place of the consolidated declaration of multiple equity incentives for taxpayers who have obtained more than two equity incentives.
Third, in the part of "tax refund (supplementation)" in Article 10, the provisions on the delivery of relevant documents for taxpayers who have not declared and paid back taxes in full have been further clarified, so as to urge taxpayers who have not declared and paid taxes in full to fulfill their tax obligations in accordance with the law.
Fourth, in the "final settlement service" part of Article 11, the system of making an appointment for tax processing has been further improved. Considering the late Spring Festival holiday this year, the starting time of the final settlement appointment for tax processing will be adjusted to February 21.
3. What are the new service optimization measures launched this year?
On the basis of continuous optimization of tax payment services, this year's final settlement has launched the following facilitation measures:
(1) Further expand the scope of priority tax refund services. For taxpayers with an annual income of less than 60,000 yuan and who have prepaid individual income tax, on the basis of providing the individual income tax APP and the website of the electronic tax bureau for natural persons with simple declaration and fast processing services in previous years, priority tax refund services will be further provided to continuously improve the sense of gain of taxpayers.
(2) Further expand the pre-filling service of the final settlement declaration form. 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.
(3) Further optimize the operation experience of taxpayers' individual income tax APP. 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.
4. What are the regulatory measures for taxpayers who have not completed the final settlement in accordance with the law this year?
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, regulatory reminders will be strengthened in the following aspects:
(1) Strengthen the supervision and reminder of taxpayers who erroneously 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.
(2) Strengthen the supervision and reminder of taxpayers who have not declared or paid back tax in full. For taxpayers who need to pay tax after the final settlement, if they fail to declare the tax payment or do not pay the tax in full after the end of the final settlement period, once it is found, 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 their individual income tax "Tax Record".
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;
Forward to know!
Source: State Administration of Taxation
