With the development of the economy, more and more foreigners have established wholly foreign-owned enterprises and Sino-foreign joint ventures in China. At the same time, the personal tax payment of non-resident individuals is also a common concern for everyone. Topic: Recently, we have collected and sorted out the differences between resident individuals and non-resident individuals in paying personal income tax. Friends who want to know more about it, please read below: Individual tax payers: Chinese citizens, individual industrial and commercial households, sole proprietorships, and partnership investments persons, foreigners with income in China (including stateless persons) and compatriots from Hong Kong, Macao and Taiwan.
1. Individual tax payers are divided into two categories: resident individuals and non-resident individuals. How to determine the two? See the table below for details: As can be seen from the table above, the annual comprehensive income of individuals The taxpayers responsible for final settlement are: resident individuals, and the conditions for collection are as follows: (1) Obtaining comprehensive income requires final settlement; (2) Obtaining taxable income does not have a withholding agent; (3) Obtaining taxable income , the withholding agent failed to withhold taxes; (4) Obtained overseas income; (5) Cancellation of Chinese household registration due to emigration abroad; (6) Non-resident individuals obtained wages and salary income from two or more places in China; (7) Other circumstances specified by the State Council.
Among them:
1. Taxpayers who do not need to handle annual settlement (1) need to pay tax for the annual settlement but the comprehensive income does not exceed 120,000 yuan for the whole year; (2) ) The amount of tax to be paid in the annual final settlement does not exceed 400 yuan; (3) The amount of prepaid tax is consistent with the annual tax payable or no tax refund is applied.
2. Taxpayers who need to handle annual accounts (1) have prepaid tax that is greater than the annual tax payable and apply for a tax refund; (2) have comprehensive income exceeding 120,000 yuan for the year and need to pay back taxes The amount exceeds 400 yuan.
3. The amount of tax refundable or payable calculated in the final settlement of personal comprehensive income = [(amount of comprehensive income - 60,000 yuan - special deductions such as "three insurances and one housing fund" - special additions such as children's education) Deductions - other deductions determined in accordance with the law - donations) p>4. The processing time for the final settlement and settlement of personal comprehensive income is from March 1 to June 30 of the following year after the end of a tax year. Taxpayers without residence in China who leave the country before March 1 can handle annual settlement before leaving the country.
5. Location for settlement and settlement of resident personal accounts A. If an entity handles annual accounts for taxpayers, it must declare to the competent tax authority of the entity; if there are two or more employing entities, it can be done independently Choose to report to one of these locations. B. If the taxpayer does not have an employer, he or she shall declare to the competent tax authority at the place of residence, habitual residence or main source of income.
Among them: the main source of income refers to the location of the withholding agent with the largest cumulative income from labor remuneration, author remuneration and royalties obtained by the taxpayer during the tax year.
2. What are the differences in individual tax withholding and prepayment methods between resident individuals and non-resident individuals? See the table below for details:
Among them:
(1) Resident individuals:
1. Wage and salary income
(1) Scope of collection: Wage and salary income refers to the wages and salaries received by resident individuals due to their employment or employment. Salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies and other income related to office or employment.
(2) Calculation:
Taxable income = amount of income - fixed deduction (5000) - special deduction (3 insurances and 1 fund) - special additional deductions (6 items)< /p>
Personal income tax withholding and prepayment = taxable income * tax rate - quick calculation deduction
(3) Tax rate
2. Income from labor remuneration
(1) Scope of collection: Income from labor remuneration: refers to the income obtained by individuals independently performing various non-employment services. Including: design, decoration, installation, drawing, laboratory, testing, medical, legal, accounting, consulting, lecturing, translation, review, calligraphy and painting, sculpture, film and television, audio and video, performances, performances, advertising, exhibitions, technical services, Introduction services, brokerage services, agency services, and other labor services.
(2) Calculate 1, income 2, income 3, income》4,000 yuan, personal income tax withholding and prepayment = each income*(1-20%)*applicable tax rate—quick calculation of deductions
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(3) Tax rate
3. Income from author remuneration
(1) Scope of taxation: A. Income obtained by authors from publishing and publishing their works in the form of books, newspapers and periodicals , personal income tax is levied on "income from royalties". B. After the death of the author, the royalties for the legacy of the property heirs are levied on personal income taxes as "income from royalties".
It is worth reminding that: 1. Remuneration received from external units without publication or publication is subject to personal income tax as "income from remuneration for labor services".
2. Journalists, editors and other professionals who work or are employed by newspapers, magazines and other units, and their income from publishing works in newspapers and magazines of their units shall be deemed as income obtained from their office or employment and shall be compared with the income of the same month. Wage income is consolidated and personal income tax is levied according to "wage and salary income".
(2) Calculate 1, income 2, income 3, income》4,000 yuan, personal income tax withholding and prepayment = each income*(1-20%)*70%*20%
(3) Tax rate: 20%
4. Income from royalties
(1) Scope of collection: Income from royalties: refers to individuals providing patent rights , income from the use of trademark rights, copyrights, non-patented technologies and other franchises.
(2) Calculate 1, income 2, income 3, income》4,000 yuan, personal income tax withholding and prepayment = each income * (1-20%) * 20%
(3) Tax rate: 20%
(2) Non-resident individuals
Salaries, labor remuneration income, author remuneration income, and royalties obtained by non-resident individuals in China All income is subject to personal income tax according to the "wage and salary" item.
It is worth reminding that: A. Since non-resident individuals have lived in China for less than 183 days, annual individual tax settlement and settlement will not be carried out on them in accordance with policy regulations. B. Comprehensive income tax obtained by non-resident individuals in China. Income (wages, wages, labor remuneration, author remuneration, and royalties) is calculated with reference to the "Personal Income Tax Monthly Tax Rate Table". For details, see the table below:
III. Summary 1. Resident individuals The personal tax payment method is: monthly withholding and prepayment, and year-end settlement and settlement; the personal tax payment method for non-resident individuals is: monthly or installment payment, and no final settlement is required at the year-end. Due to the particularity of non-resident individuals, the tax authorities also carry out differentiated collection of individual tax payments. 2. By comparing the payment methods of resident individuals and non-resident individuals, we will find that the tax authorities actually adopt a simplified collection method for non-resident individuals, that is, skip the withholding and prepayment link and directly collect individual taxes on a per-time or monthly basis. Each personal tax payment is equivalent to a small final settlement. 3. Resident individuals shall apply the "Annual Comprehensive Income Tax Rate Table" for withholding and prepayment, while non-resident individuals shall apply the "Monthly Personal Income Tax Rate Table" for calculation and payment.