1, calculate the total annual income; 2. Deduct expenses of 60,000 yuan; 3. Deduct social insurance premiums such as basic old-age insurance, basic medical insurance and unemployment insurance, and special deductions such as housing accumulation fund; 4, deduction of children's education, continuing education, serious illness medical care, housing loan interest or housing rent, support for the elderly and other special additional deductions; 5. Calculate the taxable income according to the deducted balance; 6. Calculate the tax payable according to the applicable tax rate; 7. Deduct withholding tax; 8. Determine the tax payable (refunded).
Calculation method of comprehensive income tax:
1. Determine the taxpayer's total comprehensive income: calculate the income of wages, salaries, labor remuneration, royalties and other items together;
2. Deducting tax-free income, expenses and special deductions: including social insurance premiums such as basic old-age insurance, basic medical insurance and unemployment insurance, as well as housing accumulation fund;
3. Calculate the taxable income: the taxable income is the balance of the total comprehensive income MINUS various deductions;
4. Calculate the tax payable by applying the tax rate: calculate the tax payable according to the applicable tax rate table;
5. Deduction of withholding tax: the tax paid in advance through wages and salaries is deducted from the taxable amount to obtain the taxable amount (refund).
To sum up, the annual settlement of comprehensive income tax is a systematic process, including calculating the total annual income, deducting the standard fee of 60,000 yuan, deducting the social insurance premium and housing accumulation fund, special additional deduction, calculating the taxable income and tax payable, and determining the final amount to be paid or refunded after deducting the prepaid tax, so as to ensure the legitimate rights and interests of taxpayers and promote the fair implementation of tax policies.
Legal basis:
Individual Income Tax Law of the People's Republic of China
Article 9
Individual income tax shall be paid by taxpayers, and the units or individuals who pay the income shall be withholding agents. If the taxpayer has a China citizenship number, the China citizenship number shall be the taxpayer identification number; If a taxpayer does not have a China citizenship number, the tax authorities shall issue a taxpayer identification number. When a withholding agent withholds tax, the taxpayer shall provide the withholding agent with the taxpayer identification number.
Article 13
If a taxpayer obtains taxable income without a withholding agent, it shall submit a tax return to the tax authorities within 15 days of the following month to pay the tax. If the taxpayer obtains taxable income and the withholding agent fails to withhold the tax, the taxpayer shall pay the tax before June 30 of the following year; If the tax authorities notify taxpayers to pay within a time limit, the taxpayers shall pay within a time limit. Income obtained by individual residents from outside China shall be declared and taxed from March/KLOC-0 to June 30th of the following year. Non-resident individuals who obtain wages and salaries from more than two places in China shall declare and pay taxes within 15 of the following month. Taxpayers who cancel their domestic accounts due to emigration shall go through tax settlement before canceling their domestic accounts.
Article 14
The tax withheld by withholding agents every month or every time shall be turned over to the state treasury within 15 days of the following month, and a personal income tax return for withholding shall be submitted to the tax authorities. Where a taxpayer or withholding agent handles the tax refund for the taxpayer, the tax authorities shall, after examination, handle the tax refund in accordance with the relevant provisions on treasury management.
Article 6
Calculation of taxable income:
(1) For the comprehensive income of individual residents, the taxable income shall be the income after deducting expenses of 60,000 yuan, special additional deductions and other deductions determined according to law.
Article 10
Under any of the following circumstances, taxpayers shall file tax returns according to law: (1) to obtain comprehensive income, it is necessary to make final settlement; (2) There is no withholding agent for obtaining taxable income; (3) Having obtained taxable income and the withholding agent has not withheld the tax; (4) Obtaining overseas income; (5) Cancellation of China hukou due to immigration; (6) Non-resident individuals obtain wages and salary income from two or more places in China; (seven) other circumstances stipulated by the State Council. Withholding agents shall, in accordance with the provisions of the state, apply for full withholding declaration for all employees, and provide taxpayers with information such as their personal income and tax withheld and remitted.