Reason for invalidation: According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on the Connection of Preferential Policies after the Revision of Individual Income Tax Law (Cai Shui [2065 438+08] 164), the second paragraph of this article is abolished as of 20 19 1. According to the Announcement of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Individual Income Tax Policies for Non-resident Individuals and Residents without Domicile (Announcement No.35 of State Taxation Administration of The People's Republic of China of the Ministry of Finance No.20 19), the sixth paragraph of this article is abolished as of 2019/.
Local tax bureaus of all provinces, autonomous regions, municipalities directly under the central government and cities under separate state planning, and all units in the bureau:
In order to reasonably solve the taxation problem of individual annual one-time bonus, after study, the relevant measures for adjusting individual income tax collection are hereby notified as follows:
1. The annual one-time bonus refers to the one-time bonus paid to employees by withholding agents such as administrative organs, enterprises and institutions according to their annual economic benefits and comprehensive assessment of employees' annual work performance.
The above-mentioned one-time bonus also includes the year-end salary increase, annual salary and performance salary issued by the unit that implements the annual salary system and performance salary method according to the assessment situation.
Second, taxpayers get a one-time bonus for the whole year, which is calculated and taxed separately as one month's salary income, and withheld and remitted by withholding agents according to the following tax calculation methods:
(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 method is only allowed to be used once.
Four, the implementation of the annual salary system and performance pay units and individuals to achieve year-end cash annual salary and performance pay according to the second and third of this notice.
5. All bonuses obtained by employees except the one-time bonus for the whole year, such as half-year bonus, quarterly bonus, overtime bonus, advanced bonus, attendance bonus, etc. , should be combined with the salary and salary income of the month, and pay personal income tax according to the tax law.
Six, for individuals who have no domicile to obtain the bonuses mentioned in Article 5 of this notice, if the individual has no tax obligation in China in the current month, or if the individual has worked in China for less than one month due to entry and exit reasons in the current month, the tax will still be calculated according to the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Tax Payment of Bonuses Obtained by Individuals without Domicile in China (Guo Shui Fa (1996)No. 183).
Seven, this notice shall be implemented as of June 2005 1 day. Where the previous provisions are inconsistent with this notice, the provisions of this notice shall prevail. The Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Taxation of Bonuses Obtained by Individuals with Residence in China (Guo Shui Fa [1996] No.206) and the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on How to Calculate Individual Income Tax after the Trial Annual Salary System (Guo Shui Fa [1996] 107) shall be abolished at the same time.
State Administration of Taxation (SAT)
20051October 2 1
Forwarding State Taxation Administration of The People's Republic of China's Notice on Adjusting the Method of Individual Income Tax on Individual Obtaining Annual One-time Bonus.
Guangdong Local Taxation Bureau [2005] No.32
Local tax bureaus of various cities:
Now the "Notice of State Taxation Administration of The People's Republic of China on Adjusting the Method of Individual Income Tax Collection" (No.9 [2005] of the State Administration of Taxation, hereinafter referred to as the "Notice") is forwarded to you, and the Provincial Bureau adds the following opinions, please implement them together.
The annual one-time bonus paid after June 65438+1 October1in 2005 shall be subject to the tax calculation method in this notice. For the annual one-time bonus issued after June 65438+ 10/2005, the tax overcharged according to the original tax calculation method shall be returned to the taxpayer according to law. Please report the problems in the implementation to the provincial bureau in time.
Guangdong Provincial Local Taxation Bureau
February 5(th), 2005