Cash-in rewards can be distributed monthly

In order to reasonably solve the problem of taxation of one-time annual bonuses obtained by individuals, the State Administration of Taxation recently issued the "State Administration of Taxation on Adjustments to Individuals' Obtained Bonuses" "Notice on Methods for Calculating Personal Income Tax on Annual One-time Bonuses, etc." clearly stipulates that starting from January 1, 2005, the annual one-time bonus received by an individual within the month shall be divided by 12 months and determined according to its quotient Applicable tax rates and quick deductions.

The "Notice" stipulates that if a taxpayer obtains a one-time bonus for the whole year, it shall be calculated as one month's wages and salary income separately. However, when calculating the tax, the one-time bonus for the whole year obtained by the employee within the month should first be calculated. The bonus is divided by 12 months, and the applicable tax rate and quick calculation deduction are determined according to its quotient. If in the month when the one-time bonus is issued, the employee's salary and salary income is lower than the expense deduction amount stipulated in the tax law, the annual one-time bonus shall be deducted from the balance of the "difference between the employee's salary and salary income for that month and the expense deduction amount", based on The above method determines the applicable tax rate and quick calculation deduction for one-time bonuses throughout the year.

The "Notice" clarifies that this calculation method is only allowed to be used once for each taxpayer in a tax year. At the same time, in addition to the one-time annual bonus, employees receive various other types of bonuses, such as half-year bonuses, quarterly bonuses, overtime bonuses, advanced bonuses, attendance bonuses, etc., which will all be combined with the wages and salaries of the current month, and individual income tax will be paid in accordance with tax laws.