Paying taxes has become an essential part of every taxpayer’s life.

Personal income tax is a type of income tax levied by the state on the income of its own citizens, individuals living in the country, and the income of overseas individuals derived from the country.

In our country, since business tax withdrew from the stage of history, personal income tax has become the main tax type, accounting for a large proportion of fiscal revenue and having a greater impact on the economy. Therefore, tax authorities have become increasingly strict in their inspections of personal income taxes. So, what aspects do tax authorities mainly supervise?

What should we do to achieve better and more reasonable tax savings?

Key points of payroll tax audit in 2017

(1) Audit to determine total wages.

Total wages are the total number of "reasonable wages" deducted before corporate income tax. Its size and accuracy directly affect the calculation and payment of corporate income tax.

The total salary is the basis for calculating employee benefits and insurance, and its size directly affects the amount of employee social security funds and the amount of corporate income tax.

Therefore, whether the total amount of wages of an enterprise is true or not is closely related to the corporate income tax, and is the focus of tax inspections, including audit inspections.

(2) Audit of personal income tax deductions.

When an enterprise distributes personal income, it must fulfill its obligation to withhold and pay personal income tax.

However, personal income tax always affects the interests of individual employees and enterprises. Driven by interests, some enterprises have engaged in "dereliction of duty" behavior, such as arbitrarily increasing pre-tax deduction standards and asking employees to use invoices to reimburse their income. And the prevalence of these violations. It has gradually become the focus of tax audits.

(3) Audit of salary payment.

This is mainly to review the way companies pay wages.

In order to avoid paying taxes, some companies make great efforts in the payment of wages, such as paying part of the salary in the book and sending part to the small treasury outside the book; paying part in the book and reimbursing part with invoices; and other issues such as false payment of wages. With the widespread coverage of these issues in corporate practice, they have gradually become the focus of tax audits.

How to save taxes on wages

Judging from the current salary payment in all walks of life in our country, there is a widespread problem of "imbalance". The phenomenon of high and low salary payment is bound to be in vain. It increases the tax burden on taxpayers and also violates the legal principle of "fair taxation".

The best method at present is to abide by the two principles of "separate payment" and "equal payment" when distributing salary.

(1) Separate payment

It means dividing an employee’s annual income into two forms: salary and bonus. Salaries are paid monthly and taxes are calculated monthly; bonuses are paid at the end of the year and can enjoy the preferential policies of Guoshuifa (2005) No. 9. After dividing by 12 months, personal income tax is calculated according to the applicable tax rate. Paying wages in two forms can reduce personal tax burdens more than paying them in one form.

(2) Equal pay

Reduce the high year-end bonus tax rate to the monthly salary tax rate by adjusting income.

For example

If someone receives a monthly salary of 3,000 yuan in February and March, and a bonus of 9,000 yuan in February.

Should have been paid

Salary: [(3000-2000)×10%-25]×2=150 (yuan)

Bonus: 9000×20 %-375=1425 (yuan)

***Payment: 1425+150=1575 (yuan)

If the bonus is distributed separately (divided into 4500 per month)

Monthly payment: (3004500-2000)×20%-375=725 (yuan)

***Payment: 725×2=1450 (yuan)

***Savings: 1575-1450=125 (yuan)

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