China's personal income tax collection method implements the combination of source withholding and self-declaration, paying attention to source withholding. The collection methods of personal income tax can be divided into monthly collection and annual collection. The income from production and operation of individual industrial and commercial households, the income from contracted operation and lease operation of enterprises and institutions, the income from wages and salaries of specific industries, and the income obtained from outside China shall be taxed on an annual basis, and the tax payable on other incomes shall be taxed on a monthly basis.
1, formula for calculating individual tax on wages
Taxable amount = (salary income-"five insurances and one gold"-deduction) × applicable tax rate-quick deduction.
2. The tax exemption is 5000, and the calculation method of excess progressive tax rate is used.
Tax Payment = Monthly Taxable Income * Tax Rate-Quick Deduction
Actual salary = payable salary-four gold-tax payment.
Monthly taxable income = (salary payable-four gold) -5000
3. Deduction standard
Individual tax is calculated according to the starting standard of 5000 yuan/month.
4, for example
If a person's wage income is 7,000 yuan, his personal income tax payable is: (7,000-the amount of social insurance paid by the individual-5,000) × 3%-0 = the amount of income tax payable by the individual.
Second, the personal income tax rate
Individual income tax has three different tax rates according to different tax items:
1. Income from wages and salaries shall be taxed at a progressive rate of 7 levels and calculated according to the monthly taxable income.
2. Income from production and operation of individual industrial and commercial households and the application of 5-level excess progressive tax rate to enterprises and institutions.
3. Proportional tax rate.
Tax cuts are tilted towards middle and low income. The new tax law stipulates that after this revision, some tax rate bands of individual taxes will be further optimized and adjusted, and the bands of 3%, 10% and 20% will be expanded, and the bands of 25% will be reduced, while the bands of 30%, 35% and 45% will remain unchanged.
III. Scope of individual income tax payment
1, personal income tax on wages and salaries
Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment or employment. That is to say, the income obtained by individuals, as long as it is related to their positions and employment, regardless of their unit's capital expenditure channels or in the form of cash, physical objects, securities, etc., are all taxable objects of wages and salaries.
2. Income from production and operation of individual industrial and commercial households
The income from the production and operation of individual industrial and commercial households includes four aspects:
(1) Income from the production and operation of urban and rural individual industrial and commercial households approved by the administrative department for industry and commerce to start business and obtain a business license, engaged in industry, handicraft industry, construction industry, transportation industry, commerce, catering industry, service industry, repair industry and other industries.
(2) Income obtained by individuals who have obtained business licenses with the approval of relevant government departments and engaged in school running, medical care, consulting and other paid service activities.
(3) Income derived by other individuals from individual industrial and commercial production and operation means income derived by individuals from their temporary production and operation activities.
(4) Taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.
3. Income from contracted operation and leased operation of enterprises and institutions
The income from contracted operation and leased operation of enterprises and institutions refers to the income obtained by individuals from contracted operation, leased operation and subcontracting or subletting, including the income in the nature of wages and salaries obtained by individuals on a monthly or hourly basis.
4. Income from labor remuneration
Income from remuneration for labor services refers to personal engagement in design, decoration, installation, drawing, testing, medical treatment, law, accounting, consulting, lecturing, news, broadcasting, translation, peer review, painting and calligraphy, sculpture, film and television, audio recording, video recording, performance, advertising, exhibition, technical services, introduction services, economic services, agency services and others.
5. Income from royalties
The term "income from remuneration" refers to the income obtained by individuals from the publication of their works in the form of books and newspapers. The "works" mentioned here refer to works that can be published in books, newspapers and periodicals, including Chinese and foreign characters, pictures, music scores, etc. "Personal works" include my own works and translated works. Individuals who receive remuneration for their posthumous works shall be taxed according to the items they receive from remuneration.
6. Income from royalties
Income from royalties refers to the income obtained by individuals from providing the right to use patents, copyrights, trademarks, non-patented technologies and other franchises. The income from providing the right to use copyright does not include the income from remuneration. The income obtained by the author from the public auction (bidding) of the original or photocopy of his own written works shall be taxed according to the royalties.
7. Income from interest, dividends and bonuses
Income from interest, dividends and bonuses refers to income from interest, dividends and bonuses obtained by individuals owning creditor's rights and equity. Interest refers to personal deposit interest (the state announced that the interest tax will be abolished the next day on October 8, 2008/KLOC-0), payment interest and interest on purchasing various bonds. Dividends, also known as dividends, refer to the investment benefits that stock holders get from joint-stock companies on a regular basis according to the articles of association of joint-stock companies. Dividends, also known as company (enterprise) dividends, refer to the profits of joint-stock companies or enterprises that exceed dividends according to the profits to be distributed. Joint-stock enterprises should pay dividends and bonuses to individual shareholders in the form of shares, that is, distribute bonus shares, and tax should be based on the par value of the shares distributed.
8. Income from property lease
Income from property leasing refers to the income obtained by individuals from renting buildings, land use rights, machinery, equipment, vehicles, boats and other property. Property includes movable property and immovable property.
9. Income from property transfer
Income from property transfer refers to income obtained by individuals from transferring securities, shares, buildings, land use rights, machinery and equipment, vehicles and boats and other self-owned property to others or units, including income obtained from transferring real estate and movable property. No tax will be levied on the income obtained from individual stock trading for the time being.
10, accidental income
Accidental income means that the income obtained by individuals is non-recurring and belongs to all kinds of opportunistic income, including winning prizes, winning prizes, winning lottery and other accidental income (including bonuses, objects and securities). Individuals who purchase social welfare lottery tickets and Chinese sports lottery tickets with a winning income not exceeding 10000 yuan at a time shall be exempted from personal income tax, and those who exceed 10000 yuan shall be taxed in full according to the accidental income items (as of April 2 1 year/day)
1 1, other income
In addition to the above-mentioned 10 taxable items, other income that should be taxed shall be determined by the financial department of the State Council. The financial department of the State Council refers to the Ministry of Finance and State Taxation Administration of The People's Republic of China. As of April 30, 1997, the Ministry of Finance and State Taxation Administration of The People's Republic of China have determined other income items to be taxed as follows:
(1) Individuals have obtained the honorary prize of Academician of China Academy of Sciences awarded by Cai Guanshen's Honorary Foundation for Academician of China Academy of Sciences.
(2) The individual obtains the deposit bonus paid by the banking department at an interest rate and a value-preserving subsidy rate that exceed the national regulations.
(three) the preferential income of the individual for paying the relevant insurance premiums by the employer.
(4) Interest (or similar income paid in other names) paid by the insurance company to life insurers who have not been out of danger during the insurance period at the interest rate of bank savings deposits for the same period.
(5) The rebate income or transaction fee return income obtained by individual shareholders from the securities company to attract large shareholders to open accounts in the company and pay part of the transaction fee obtained to large shareholders.
(6) Individuals obtain that some units and departments distribute cash, physical objects or securities to relevant personnel of other units and departments in year-end summary, various celebrations, business contacts and other activities.
(7) Resignation risk fund.
(eight) individuals to provide security for the unit or others to get paid.
If it is difficult to define which taxable income item an individual obtains, it shall be examined and determined by the competent tax authorities.