First, the pre-tax deduction policy of performance pay.
The Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Adjusting the Method of Calculating Individual Income Tax for Individuals Obtaining Annual One-time Bonuses (Guo Shui Fa [2005] No.9) stipulates that taxpayers who obtain annual one-time bonuses shall be taxed as one month's salary and salary income respectively, and shall be withheld and remitted by withholding agents at the time of payment. Article 3 of the document clearly stipulates that "the one-time bonus for the whole year also includes the annual salary and performance salary issued by the unit that implements the annual salary system and performance salary method according to the assessment situation." The specific tax calculation method is:
(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 wage 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.
(2) The annual one-time bonus obtained by individual employees in the current month shall be taxed according to the applicable tax rate and quick deduction determined in Item (1) of this article, and the calculation formula is as follows:
1. If the employee's wage 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 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 = (employees get a one-time bonus in the current month-the difference between employees' salary income and expense deduction in the current month) × applicable tax rate-quick deduction.
(three) in a tax year, for each taxpayer, the tax payment method is only allowed to be used once. Other bonuses, such as half-year bonus, quarterly bonus, overtime bonus, advanced bonus, attendance bonus, etc. All of them are merged with the salary income of the current month, and personal income tax is paid according to the tax law.
To facilitate understanding, here are some examples:
For example, in February 2009, the employee salary of a company was 3,600 yuan, and the year-end bonus was 2,000 yuan. Then the salary of the current month is taxed at (3600-2000) ×10%-25 =135 yuan, and the taxable income of the year-end bonus of the current month is: 2000÷ 12= 167, and it is determined that the income below 500 is taxed at 5%.
Another example: the employee's salary in February 2009 was 1900 yuan, other conditions being the same. Then the monthly payroll tax is lower than the threshold of 100 yuan, so there is no need to pay taxes. The taxable income of year-end bonus in the current month is: (2000-100) ÷12 =158.3, the tax rate is less than 500, and the year-end bonus tax is 2000×5% = 65438.3.
Second, on the issue of tax payment vouchers.
Article 9 of the Interim Measures for the Withholding and Remittance of Individual Income Tax in State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) stipulates that "when withholding taxes, withholding agents must issue a tax withholding certificate uniformly printed by the tax authorities to the taxpayer, detailing the taxpayer's name, work unit, home address, resident ID card or passport number and other personal information. Because there are many taxpayers, it is not convenient to issue withholding and collecting vouchers one by one. With the consent of the competent tax authorities, it is not necessary to issue tax withholding and collecting certificates, but taxpayers should be informed of the tax withheld through certain forms. Where a taxpayer asks a withholding agent for a tax withholding certificate to grasp the tax basis, the withholding agent shall not refuse. Withholding agents should take the initiative to apply to the tax authorities for tax withholding and collection certificates, so as to withhold and pay taxes to taxpayers.