Individual residents can get a one-time bonus for the whole year, or they can choose to be incorporated into the comprehensive income of the current year to calculate tax payment. Starting from 2022 1 month 1 day, individual residents who receive a one-time bonus for the whole year shall be incorporated into the comprehensive income of that year to calculate and pay personal income tax.
Personal income tax should be paid for the prize money of the competition. If the income is accidental, individual income tax shall be paid at 20% of the income. According to the tax law, individuals who get accidental income are taxpayers of personal income tax and should pay taxes according to law; The unit that pays incidental income to individuals is the withholding agent of individual income tax. No matter where the prize is awarded or awarded, the personal income tax payable for accidental income shall be withheld by the paying unit. Accidental income is taxable with income amount, and the tax rate is calculated at 20%.
Personal income tax is a kind of income tax levied by the state on the income of its citizens, individuals living in its own territory and overseas individuals from its own country. In the calculation of bonus personal income tax, the payable personal income tax amount is equal to the taxable income multiplied by the applicable tax rate deceleration deduction standard, and the monthly income MINUS the deduction standard after deducting three insurances and one gold from the monthly taxable income of 3,500 yuan. There are two main ways to collect personal income tax: one is withholding; The second is self-declaration of tax. In addition, in order to improve the efficiency of collection and management and facilitate taxpayers, some places have adopted the method of entrusting to collect individual taxable income items.
Legal Basis: Notice of State Taxation Administration of The People's Republic of China on Adjusting the Calculation and Collection Method of Individual Income Tax for Individuals Obtaining Annual One-time Bonuses Article 2 Taxpayers who obtain annual one-time bonuses shall be taxed separately as one month's salary and salary income, and shall be withheld and remitted by withholding agents when paying them according to the following tax calculation methods:
(1) Divide the annual one-time bonus obtained by employees in the current month by 12 months, and determine the applicable tax rate and quick deduction according to their quotient.
If, in the month when the year-end one-time bonus is issued, the employee's salary income in that month is lower than the expense deduction stipulated in the tax law, the applicable tax rate and quick deduction of the annual one-time bonus shall be determined according to the above method.
(two) the annual one-time bonus obtained by the individual employee in the month shall be calculated according to the first paragraph of this article.
The applicable tax rate and quick deduction determined in item (1) shall be calculated as follows:
1. If the employee's salary income in the current month is higher than (or equal to) the expense deduction stipulated in the tax law, the applicable formula is:
Taxable amount = employee's annual one-time bonus in the current month × applicable tax rate-quick deduction.
2. If the employee's salary income in the current month is lower than the expense deduction stipulated in the tax law, the applicable formula is:
Taxable amount = (the employee gets a one-time bonus in the current month-the difference between the employee's salary income in the current month and the expense deduction) × applicable tax rate-quick deduction.
Notice of State Taxation Administration of The People's Republic of China on Adjusting the Method of Calculating and Collecting Individual Income Tax for Individuals Obtaining Annual One-time Bonus Article 3 In a tax year, this tax calculation method can only be used once for each taxpayer.
"Notice of State Taxation Administration of The People's Republic of China on Adjusting the Method of Calculating and Collecting Individual Income Tax for Individuals Obtaining Annual One-time Bonuses" Article 4 Where the annual salary system and performance pay are implemented, the annual salary and performance pay realized by individuals at the end of the year shall be implemented according to Articles 2 and 3 of this Notice.
Notice of State Taxation Administration of The People's Republic of China on Adjusting the Method of Calculating and Collecting Individual Income Tax for Individuals Obtaining Annual One-time Bonuses Article 5 All bonuses obtained by employees except annual one-time bonuses, such as semi-annual bonus, quarterly bonus, overtime bonus, advanced bonus and attendance bonus, shall be merged with the salary and salary income of the current month, and individual income tax shall be paid according to the provisions of the tax law.