I. Significance of annual settlement
Annual final settlement is an important system of tax collection and management, and it is also a necessary link for taxpayers to fulfill their tax obligations. Through annual settlement, taxpayers can comprehensively and accurately calculate their annual tax payment and ensure the legality and accuracy of tax payment. At the same time, the annual settlement will also help the tax authorities to better grasp the taxpayer's tax situation and strengthen tax supervision and risk prevention.
Second, the operation process of annual settlement
1. Annual income summary: Taxpayers need to summarize their annual income, including wages, remuneration for manuscripts, remuneration for labor services, royalties and other income.
2. Accounting of annual expenditures: Taxpayers also need to account for their annual expenditures, including various expenses, donations and pre-tax deductions.
3. Calculation of tax payable: According to the summarized income and calculated expenditure, taxpayers need to calculate the tax payable in accordance with the provisions of the tax law.
4. Declaration of tax payment or tax refund: Finally, taxpayers need to declare tax payment or apply for tax refund according to the requirements of the tax authorities.
Three. Matters needing attention in annual settlement
1. accurate accounting: taxpayers should ensure the accuracy and completeness of accounting when making annual final accounts, and avoid missing and misstatement.
2. Abide by the provisions of the tax law: Taxpayers should strictly abide by the provisions of the tax law and make annual final settlement and payment in accordance with the prescribed time limit and procedures to ensure the legality and timeliness of taxes.
3. Keep relevant vouchers: Taxpayers should properly keep vouchers and materials related to the annual settlement for the tax authorities to check.
To sum up:
Annual final settlement refers to the process that taxpayers calculate their annual income and expenditure, determine the tax payable, and pay or refund taxes after the end of a tax year. It is not only an important link in tax collection and management, but also a necessary link for taxpayers to fulfill their tax obligations. Taxpayers should accurately calculate and abide by the provisions of the tax law, keep relevant vouchers, and ensure the smooth progress of annual settlement and payment and the legality of taxes.
Legal basis:
Individual Income Tax Law of the People's Republic of China
Article 6 provides that:
Individual income tax shall be paid in accordance with the provisions of this Law on income obtained by individual residents from inside and outside China.
Income obtained by non-resident individuals from China shall be subject to individual income tax in accordance with the provisions of this Law.
The tax year starts from Gregorian calendar 1 month 1 day and ends on1February 3 1 day.
individual income tax law of the people's republic of china rules for its implementation
Article 25 provides that:
The circumstances that need to settle the comprehensive income include:
(1) Obtaining comprehensive income from two or more places, and the balance of the annual income of the comprehensive income after deducting special surcharges exceeds 60,000 yuan;
(2) Obtaining one or more of labor remuneration, royalties and royalties, and the balance of annual comprehensive income after deducting special expenses exceeds 60,000 yuan;
(3) The prepaid tax amount is lower than the taxable amount in the tax year;
(4) Taxpayers apply for tax refund.
Taxpayers who need tax refund should provide their bank accounts opened in China and keep them in the tax authorities after the final settlement period.