The annual final settlement of personal income tax refers to the final settlement of income tax and other taxes applicable to prepayment method after the end of the year. It refers to the process that taxpayers summarize the annual income of four comprehensive incomes, such as wages and salaries, labor remuneration and royalties, after the end of the year. Deduct the annual expenses and deductions to obtain taxable income, calculate the annual personal income tax payable according to the annual tax rate table of comprehensive income, subtract the tax paid in advance in the current year, and handle the annual tax declaration with the tax authorities to settle the tax that should be refunded or paid back.

Second, analyze the details

Annual final settlement can better protect the legitimate rights and interests of taxpayers. Only by the end of the year can we know the exact amount of annual expenditure, which needs to be supplemented and deducted in the annual settlement. Through the annual settlement, the annual personal income tax payable by taxpayers on comprehensive income can be calculated more accurately. Taxpayers usually get comprehensive income under complicated circumstances. No matter what withholding method is adopted, it is impossible for all taxpayers to pay the tax in advance at ordinary times exactly the same as the annual tax payable. It needs to be adjusted through annual settlement.

3. What are the final settlement methods?

The settlement method is as follows:

1, handle the annual closing by yourself;

2, through the employment unit. If it is handled by the unit, the taxpayer and the unit shall confirm it in writing or electronically, and be responsible for the authenticity, accuracy and completeness of the submitted information. If the taxpayer has not confirmed with the unit that it is required to handle the annual settlement on its behalf, the unit shall not act as an agent;

3. Where a tax-related professional service institution or other unit or individual is entrusted, the trustee shall sign a power of attorney with the taxpayer. After the unit or the entrusted unit handles the annual settlement and payment for the taxpayer, it shall promptly inform the taxpayer of the handling situation. Taxpayers who find that the declaration information is wrong may ask the unit or the trustee to correct it, or they may correct it themselves.