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The year-end bonus tax incentives
In order to reduce the burden on taxpayers, so that we pay less tax, as early as December 31, 2021, the State Council had announced the continuation of three tax incentives, which individual tax year-end awards separate tax preferential policies continue, will be able to alleviate the burden of year-end awards of salary earners tax,400 yuan within the compensatory tax exemption policy will also be The policy will also be renewed.

Highlights are summarized as follows

1. The annual lump sum bonus will not be included in the monthly salary income, the implementation of the monthly individual tax calculation policy extended to the end of 2023.

2. The annual income of up to 120,000 yuan and the need to make up the tax or the annual remittance reimbursement of tax amount of up to 400 yuan is exempted from the policy extended to the end of 2023.

In other words, there are two ways to calculate the withholding tax of the year-end bonus, namely: separate tax and integrated into the comprehensive income.

So, which of these two ways is more tax efficient?

02, year-end awards two ways to declare which is more tax-efficient?

Can be roughly divided into three cases:

1. The year's income (including the year-end bonus) minus 60,000 yuan and five insurance, additional deductions and other taxable income less than or equal to 0 yuan, and integrated into the comprehensive income tax is more tax-efficient.

2. The year's income (including the year-end bonus) minus 60,000 yuan and five insurance, additional deductions and other taxable income between 0 and 10,000 yuan, the choice of two ways can be.

3. The year's income (including the year-end bonus) minus 60,000 yuan and five insurance, additional deductions and other taxable income is greater than 10,000 yuan, due to the existence of a minefield of separate declaration of the year-end bonus and other reasons, in order to minimize the tax burden, can be distributed between the year-end bonus and wages, the distribution of year-end bonus in accordance with the annual lump-sum bonuses to be declared separately.

Specifically look at the chart:

400 yuan exemption policy

The so-called 400 yuan exemption policy, refers to the annual income of up to 120,000 yuan and need to make up the tax or annual remittance of the amount of tax does not exceed 400 yuan exemption from making up the tax, the policy was also extended to the end of 2023.

For example, if you need to pay $300 in back taxes after the final accounting, you will not have to pay any back taxes according to the above exemption policy of less than $400. If this policy is not renewed, then next year for the 2022 accounting, you may need to pay to make up the tax.

For individuals, although not much, but it does reduce part of the tax burden.

03, personal tax withholding calculations and declarations are based on this

How to calculate personal income tax? From when to start withholding? How much should I pay?

I. When the tax obligation occurs

2. How to calculate and declare the personal income tax?

Three, personal income tax rate table

Four, business income tax rate table

Cash tax four + big data, as long as the tax related to the illegal, the geese will certainly leave traces, and then want to escape the responsibility of the work is not feasible!