There are two ways to calculate an individual's one-time bonus for the whole year: if an individual's salary income is higher than or equal to 3,500 yuan in the month of receiving the bonus, the personal income tax payable shall be calculated by multiplying the one-time bonus for the whole year of the month by the applicable tax rate, minus the quick deduction; If the monthly wage income is less than 3,500 yuan, the calculation method of personal income tax payable is as follows: the individual obtains the one-time bonus for the whole year in the current month, minus the difference between the monthly wage income and the expense deduction, and then multiplies it by the applicable tax rate, minus the quick deduction. These two calculation methods are implemented according to the notice issued by State Taxation Administration of The People's Republic of China in 2005.
Tax treatment of wages:
1. Calculation method of wage income tax: subtract the threshold from the monthly income and calculate the tax payable according to the progressive tax rate table;
2. Tax preference for annual one-time bonus: you can choose to tax separately. Divide the annual one-time bonus by 12 months, and calculate the tax according to the monthly salary income tax rate table;
3. Choice of consolidated tax and separate tax: Taxpayers can choose consolidated tax or separate tax for the one-time bonus of the whole year according to their annual income to reduce the taxable amount;
4. Application of the threshold: No matter whether you pay taxes jointly or separately, you need to consider the personal income tax threshold of 3,500 yuan per month.
To sum up, whether individuals choose to pay taxes on bonuses and salaries in combination or separately should be based on the salary income of the current month. According to the notice of State Taxation Administration of The People's Republic of China in 2005, when the monthly salary is higher than or equal to 3,500 yuan, it will be multiplied by the tax rate and deducted, and the tax will be calculated when it is lower than 3,500 yuan. Both methods require individuals to choose carefully according to the actual situation in order to optimize the tax burden.
Legal basis:
Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on the convergence of preferential policies after the revision of the individual income tax law
First, the annual one-time bonus, the annual performance salary deferred cash income of the person in charge of the central enterprise and the term reward policy.
(a) individual residents get the annual one-time bonus, which is in line with the provisions of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Adjusting the Calculation and Collection Method of Individual Income Tax for Individuals Getting the Annual One-time Bonus (Guo Shui Fa [2005] No.9). Before 202 12, the annual one-time bonus income will be divided by 12, and the calculation formula is:
Taxable amount = annual one-time bonus income multiplied by applicable tax rate-quick deduction
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 June 65438+ 10/day, 2022, the annual one-time bonus for individual residents shall be incorporated into the comprehensive income of that year to calculate and pay personal income tax.