What are the precautions for personal income tax?
1, separate taxation is the most cost-effective.
According to the provisions of the tax law, there are eleven taxable items of personal income, including the most common wages, salaries and labor remuneration, including self-employed business income, dividends, bonus income, accidental income such as winning lottery tickets and undefined "other income".
2. The collection of high income tax mainly depends on your conscious declaration.
Personal income tax shall be paid to the local tax department where the company is registered. "It belongs to local fiscal revenue and does not need to be turned over to the state," said a person from the finance department of a company. "But the tax paid by a single person can't be found in the local taxation bureau, and its system only has the overall figures paid by the company. Only by checking the company's accounts can we find the situation of evading personal income tax. " For high-income people, the tax authorities adopt a cross-examination system combining taxpayers' self-declaration with legal person or employer's declaration to reduce the possibility of tax evasion.
Taxpayers of individual income tax include resident taxpayers and non-resident taxpayer. Resident taxpayers have the obligation to pay taxes in an all-round way, and must pay individual income tax on all their income inside and outside China; Non-resident taxpayer only pays individual income tax on its income derived from China.
Personal income tax is a kind of income tax levied by the state on the income of its own citizens, individuals living in its own territory and overseas individuals from its own country.
In some countries, personal income tax is the main tax, which accounts for a large proportion of fiscal revenue and has a great impact on the economy. Taxpayers of individual income tax in China are those who live in China and those who do not live in China but get income from China, including citizens in China, foreigners who get income in China and compatriots from Hong Kong, Macao and Taiwan.