Announcement on improving and adjusting the way of withholding and paying personal income tax of some taxpayers (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China AnnouncementNo. 13, 2020)
5 1 individual tax shows that this new tax policy mainly affects two types of people:
1, the individual resident who obtained the salary and salary income for the first time in that year.
2. Students who get paid for their internship.
Case 1
Taxpayer Ding hasn't found a job from October to August, 2020/KLOC-0, and hasn't received salary income. He only paid 8,000 yuan in labor remuneration, and withheld the tax in advance according to the withholding rate of 20% of the single income. At the beginning of September, he found a new job and began to get paid.
Then, when calculating and withholding personal income tax on salary and salary in September for Ding, the new employer can deduct the accumulated deduction expenses calculated since the beginning of the year, that is, 45,000 yuan (9 months × 5,000 yuan/month).
Case 2
Student Ma Xiaoyun worked as an intern in a company in July, 2020, and received a labor remuneration of RMB 3,000.
When withholding units pay personal income tax in advance from labor remuneration, they can use the cumulative withholding method to pay in advance.
If this method is adopted, then, after deducting 5,000 yuan and expenses from Ma Xiaoyun's labor remuneration in July, there is no need to pay tax in advance, which is less than that before the improvement and adjustment of withholding and prepayment method.
If Ma Xiaoyun has no employment and other comprehensive income in this year, he doesn't need to apply for annual tax refund in the next year.