Legal analysis: 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. Taxpayers get the annual one-time bonus, which is calculated and paid as one month's salary income respectively, 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 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: 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: tax payable = annual one-time bonus obtained by the employee 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: tax payable = (employee gets a one-time bonus in the current month-the difference between employee's 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.
Legal basis: Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Adjusting the Method of Individual Income Tax for Individual Obtaining Annual One-time Bonus.
Article 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.