After this tax adjustment, when withholding personal income tax on an annual basis, as long as there is income for the first time, you can deduct relevant expenses by multiplying 5,000 yuan per month by the taxpayer's settlement month of this year. For example, after this tax adjustment, graduates can calculate the personal income tax that should be deducted and paid when paying the salary of the current month, and this part of the expenses can be exempted. For example, when the salary is paid in August, the personal income tax fee is 40,000. As can be seen from the example, the adjustment of personal income tax is a very good employment incentive for graduates. It should be noted that the individual tax adjustment will be implemented from July 2020 1. Graduates or interns who have withheld more personal income tax before July 1 can apply for tax refund on July 202 1.
After the adjustment of individual tax policy, there are many benefits, but there are still some shortcomings.
First, the scope of taxation is relatively narrow.
To give a simple example, many employees can achieve high income even if they stay at home, and the individual taxes of these employees are not fully included in the collection.
Two, the classification of tax collection, may make some individuals or units for reasonable tax avoidance.
Even if some employees belong to a company, they only pay a tax according to their wages, not all their labor remuneration.
Third, taxes may be questioned.
Taxpayers who only rely on wages will question the entry point of taxation, mainly because the income of high-income earners is uncertain, but it is obviously unfair to pay taxes according to wages.
Nowadays, the adjustment of individual tax policy has played a very positive role in stabilizing the employment of graduates. However, the single means of reform, the tax collection and management can't keep up with the tax reform, and the taxpayer's interpretation of tax is backward, which are all stumbling blocks for the annual tax reform.