Mortgage interest refers to the interest paid by taxpayers to obtain housing loans from banks and other financial institutions. According to the relevant regulations of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), taxpayers can choose to declare according to the comprehensive income tax rate or special deduction when the personal income tax is settled. If declared according to the comprehensive income tax rate, the mortgage interest will be calculated together with other income, and the comprehensive income tax rate is applicable to individual tax payment. If you choose the special additional deduction method to declare, you can enjoy the preferential policy of full deduction of mortgage interest when personal income tax is settled. It is suggested that taxpayers choose the appropriate declaration method according to their own specific conditions. If the taxpayer's other income is relatively high, he may pay more personal income tax if he declares according to the comprehensive income tax rate. If taxpayers have a large amount of housing loans, they can choose a special deduction method to declare, so as to reduce the tax burden.
Can I choose to declare at the same time according to the comprehensive income tax rate and special additional deduction? In the final settlement of personal income tax, taxpayers can only choose one declaration method, and cannot adopt the comprehensive income tax rate and special deduction method at the same time.
The declaration method of mortgage interest tax deduction is very important for taxpayers, and they need to choose according to their actual situation. In order to reduce the personal tax burden, it is suggested that taxpayers carefully choose their own declaration methods when settling personal income tax.
Legal basis:
People's Republic of China (PRC) Individual Income Tax Law Article 62 Taxpayers shall calculate the taxable amount according to the tax rate and tax amount of taxable income items stipulated in this Law. However, according to the relevant provisions of the state, the taxable income can be calculated by full deduction or pre-tax deduction.