1. Tax payment method: personal income tax shall be deducted when performance bonus is paid, and the company shall pay it on its behalf. Income earners can also pay personal income tax at the tax authorities themselves;
2. Tax rate: the personal income tax rate of performance bonus is the same as that of salary, and it is calculated according to the progressive tax rate table. The specific tax rate varies according to the amount of performance bonus.
Consequences of not paying personal income tax:
1. liquidated damages: personal income tax late payment fee is a punishment for individuals who fail to pay personal income tax on time. According to the provisions of the tax law, if an individual fails to pay personal income tax on time, the late payment fee shall be calculated according to the standard of three thousandths every day, and the maximum amount shall not exceed 50% of the tax owed;
2. Pay tax: If an individual fails to pay personal income tax on time, he needs to pay tax to obtain the corresponding tax payment certificate and tax payment record;
3. Tax Punishment: Individuals who fail to pay personal income tax according to regulations may face penalties from tax authorities, including ordering correction within a time limit, fines, administrative detention, etc.
4. Damage to credit record: Failure to pay personal income tax as required will affect personal credit record, which may have a certain impact on personal daily life and work.
To sum up, if the performance bonus is paid together with other income, it is necessary to list the performance bonus separately and calculate the personal income tax. If the performance bonus is paid as a year-end bonus, you can choose to pay personal income tax in one lump sum or in installments.
Legal basis:
Article 1 of the Individual Income Tax Law of People's Republic of China (PRC)
Individuals who have domicile or no domicile in China but have resided in China for a total of 183 days in a tax year are individual residents. Individual income tax shall be paid in accordance with the provisions of this Law on income obtained by individual residents from inside and outside China.
Individuals who have neither domicile nor residence in China, or who have lived in China for less than 183 days in a tax year, are non-resident individuals. Income obtained by non-resident individuals from China shall be subject to individual income tax in accordance with the provisions of this Law.
The tax year starts from Gregorian calendar 1 month 1 day and ends on1February 3 1 day.