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Annual one-time bonus tax method
"One-time bonus tax calculation method", the annual one-time bonus obtained by individual taxpayers in 2020 may not be incorporated into the comprehensive income of that year. Divide the total bonus by 12 months, determine the applicable tax rate and quick deduction according to the monthly comprehensive income tax rate table, and calculate the tax separately, so as to prevent some taxpayers from increasing the applicable tax rate after the annual one-time bonus is incorporated into the comprehensive income. It should also be noted that the advantage of the annual one-time bonus policy is that it is taxed separately and not combined with the comprehensive income of the current year, thus reducing the applicable tax rate by "splitting" the income. For some low-and middle-income people, if the annual one-time bonus is combined with the salary income of the current year, after deducting the basic expenses, special deductions and special additional deductions, it may not be necessary to pay tax at all or pay little tax. However, if the annual one-time bonus is taxed separately, it will generate taxable amount or increase the tax burden. At the same time, if the annual one-time bonus policy is applied alone, there may be a "critical point" phenomenon of sudden increase in tax burden when the tax rate shifts.

Legal basis:

Article 9 of the Individual Income Tax Law of the People's Republic of China takes the income as the taxpayer and the unit or individual who pays the income as the withholding agent. If the taxpayer has a China citizenship number, the China citizenship number shall be the taxpayer identification number; If a taxpayer does not have a China citizenship number, the tax authorities shall give it a taxpayer identification number. When a withholding agent withholds tax, the taxpayer shall provide the withholding agent with the taxpayer identification number.