The taxation principle of personal income tax is to implement the excessive progressive tax rate. When the taxpayer's taxable income exceeds a certain level, the excess will be taxed at the higher tax rate. Therefore, an abnormally high monthly salary or year-end bonus will lead to a higher tax rate (up to 45%), so it is necessary to reasonably allocate the ratio of the two. From the actual situation, the overall tax burden can be minimized when the salary and year-end bonus are in1:1.

(B) to avoid the critical point

As mentioned in (1) above, the applicable tax rate for "wages and salaries" is divided into seven grades. After deducting the "expenses" of 3,500 yuan per month, the tax rate of 3% applies to those that do not exceed 1500 yuan, and the tax rate of 10% applies to those that exceed 1500 yuan to 4,500 yuan. Applying the tax rate of 45%, it can be seen that when the tax rate is at the "critical point", increasing 1 yuan will bring more additional personal income tax. Therefore, when the unit pays wages, it should pay full attention to these critical points and reduce the applicable tax rate by delaying payment next month.

(C) the use of "tax exemption" preferential policies

Preferential tax policies are usually set up to encourage and guide certain behaviors. Although the scope of "welfare expenses" tax exemption is limited, it is still a way to carry out tax planning. In addition, subsidies, allowances, insurance claims, settling-in allowance, retirement salary, retirement salary, retirement living allowance, etc. issued to cadres and workers in accordance with the unified regulations of the state also belong to the scope of tax exemption; At the same time, according to state regulations, the basic old-age insurance premium, basic medical insurance premium, unemployment insurance premium and housing accumulation fund paid by units and individuals can be deducted from the taxable income. Enterprises can minimize the tax burden of "wages and salaries" within the scope of relevant standards.

(D) Change "wages and salaries" into "dividends"

For listed companies and other large and medium-sized enterprise executives and other groups, the tax rate of 45% is usually applied according to "wages and salaries", and the tax burden is heavy. The executives of depressed enterprises are usually closely related to the interests of enterprises. At the same time, according to the provisions of the Individual Income Tax Law, the income tax rate of "dividends" is 20%. If the "wages and salaries" of executives and other groups are converted into "dividends" through reasonable planning, the applicable tax rate can be effectively reduced.

(5) Actively strive for local tax rebates.

Personal income tax belongs to the national and local * * * tax, which is specifically collected by the local tax authorities. According to the regulations, the ratio between the central and local governments is 60%: 40%. In order to attract investment, some regions give investors a certain tax rebate for local income, with the highest proportion of 60-70%. Therefore, for some enterprises with extensive investment areas, they can make full use of the policies of these regions to realize the reasonable planning of individual taxes.