Legal basis: Article 2 of the Individual Income Tax Law of the People's Republic of China, individual income tax shall be paid for the following personal income:
(1) Income from wages and salaries;
(2) Income from remuneration for labor services;
(3) Income from remuneration;
(4) Income from royalties;
(5) Operating income;
(6) Income from interest, dividends and bonuses;
(7) Income from property lease;
(8) Income from property transfer;
(9) Accidental income.
Individual income tax shall be calculated on a consolidated basis according to the tax year when individual residents obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income); Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly basis or by sub-item. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.
According to the "Notice on Exemption of Individual Income Tax from One-time Compensation Income Obtained from the Termination of Labor Relations between Individuals and Employers", individual income from one-time economic compensation income, resignation fee and resettlement fee obtained from the termination of labor relations with employers shall be calculated and paid according to the following methods:
1. The one-time compensation income (including the economic compensation, living allowance and other subsidy expenses paid by the employer) obtained by an individual due to the termination of labor relations with the employer shall be exempted from personal income tax for the part whose income is less than 3 times the average salary of local employees in the previous year; The excess shall be calculated and collected in accordance with the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China on the Collection of Individual Income Tax for Individuals Obtaining Economic Compensation for the Termination of Labor Contracts (Guo Shui Fa [1999] 178). It can be regarded as obtaining wages and salary income for several months at a time, and it is allowed to be averaged within a certain period of time. Specific average method: divide the one-time economic compensation income obtained by an individual by the number of years he has worked in this enterprise, take his quotient as his monthly salary and salary income, and calculate and pay personal income tax according to the provisions of the tax law. The individual's working years in this enterprise are calculated according to the actual working years, and those exceeding 12 years are calculated according to 12 years;
2. The housing accumulation fund, medical insurance premium, basic old-age insurance premium and unemployment insurance premium actually paid by individuals when they receive one-time compensation income can be deducted when calculating their personal income tax on one-time compensation income;
3. The enterprise is declared bankrupt according to the relevant laws and regulations of the state, and the income from the one-time resettlement fee obtained by the employees of the enterprise from the bankrupt enterprise shall be exempted from personal income tax;
4. If an individual is employed again after the termination of the labor contract, the one-time economic compensation income of the individual who has paid personal income tax will no longer be combined with the salary and salary income of the re-employment and employment to pay personal income tax.
The income of workers is different, so it is related to whether they need to pay personal income tax. After the general wage income reaches a certain standard, it is necessary to pay a tax in accordance with the regulations for the excess, otherwise it is not necessary to pay, which means that the company does not need to withhold a tax for all employees.