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Hello, there are some internal retirees in our unit who have not formally gone through retirement procedures, and their wages and benefits enjoy retirement benefits. Do they have to pay personal income tax?

Professional answers

According to the provisions of the Notice of State Taxation Administration of The People's Republic of China Municipality on Relevant Policy Issues concerning Individual Income Tax, the wages and salaries obtained by an individual from his former employer between the time he goes through the internal retirement formalities and the legal retirement age are not retired wages, and personal income tax should be levied according to the item of "income from wages and salaries".

The one-time income obtained by an individual from the original employer after going through the internal retirement formalities shall be averaged according to the month between the internal retirement formalities and the legal retirement age, and the deduction standard of expenses in the current month shall be deducted after being merged with the income of "wages and salaries" in the current month, and the applicable tax rate shall be determined based on the balance. Then, personal income tax shall be levied according to the applicable tax rate by adding the wages and salaries in the current month to the one-time income obtained.

the income from "wages and salaries" obtained by an individual from re-employment between the internal retirement formalities and the statutory retirement age should be merged with the income from his original employer in the same month, and the individual income tax should be declared and paid to the competent tax authorities by himself according to law.

for the income obtained from the unit before going through the formal retirement formalities, individual income tax shall be paid according to the "salary income" according to law.