Although China citizens have paid taxes abroad, they should report and pay individual income tax to China tax authorities within 30 days after the end of the year according to the provisions of China's tax law. When filing tax returns in China, they are allowed to deduct the personal income tax paid abroad from the tax payable.

That is, the actual amount of personal income tax paid by taxpayers abroad is lower than the tax calculated according to the provisions of China's personal income tax law, and the difference should be paid in China; If the amount of individual income tax actually paid abroad is higher than the tax calculated according to the provisions of China's individual income tax law, the excess shall not be deducted from the taxable amount of this tax year, but may be deducted from the balance of the deduction limit of the country or region in the following tax years, and the maximum deduction period shall not exceed five years.

Example: A taxpayer obtains taxable income from A and B countries in the same tax year. Among them: working in a company in country A, earning 60,000 yuan in salary (5,000 yuan per month on average), earning 30,000 yuan in royalties for providing a patent technology use right, and paying personal income tax of 5,200 yuan in country A; For publishing a book in country B, I received the remuneration income (royalty) 15000 yuan, and paid the personal income tax on this income in country B 1720 yuan. The deduction calculation method is as follows:

(1) Deduction of individual income tax in country A

According to the expense deduction standard and tax rate stipulated in China's tax law, the taxable amount of taxable income obtained by the taxpayer from country A is calculated, which is the deduction limit.

1, wages and salary income. The taxpayer's salary and salary income from country A shall be reduced by 4,000 yuan per month, and the taxable amount of the balance shall be calculated according to the applicable tax rate of the 9-level excess progressive tax rate table. The monthly tax payable is:

(5000-4000)× 10% (tax rate) -25 (quick deduction) =75 (yuan)

The annual tax payable is: 75× 12 (number of months) =900 yuan.

2. Income from royalties. The tax payer shall deduct 20% of the royalty income from country A, and then calculate the tax payable at the rate of 2%, which shall be:

30000×( 1-20%)×20 (tax rate) =4800 (yuan)

According to the calculation results, the deductible limit of personal income tax paid by the taxpayer in country A for taxable income obtained from country A is 5700 yuan (900+4800). The actual personal income tax paid in country A is 5,200 yuan, which is lower than the deduction limit, and can be fully deducted, and the tax of the difference needs to be paid back in China, which is calculated as 500 yuan (5700-5200).

(2) The deduction of personal income tax in country B.

According to the provisions of China's tax law, the taxpayer shall deduct 20% of his remuneration income from country B, and calculate the tax payable at the rate of 20% and reduce it by 30% for the balance. The calculation result is as follows:

{15000× (1-20% )× 20% (tax rate) }×( 1-30%)= 1680 (yuan)

That is, the deduction limit is 1680 yuan. The taxpayer actually pays personal income tax 1720 yuan in country B, which exceeds the deduction limit in 40 yuan. It cannot be deducted in this year, but it can be supplemented in the balance of the deduction limit in that country in the next five tax years.

Based on the above calculation results, the taxpayer's overseas income in this tax year should be paid back to China for personal income tax 500 yuan. 40 yuan, whose personal income tax paid in country B has not been fully reduced, will not be reduced for the time being.