I. Clever Use of Provident Fund According to the relevant provisions of the Individual Income Tax Law, the monthly housing provident fund paid by working-class individuals is deducted before tax, which means that the housing provident fund paid according to the standard is not taxed.

At the same time, employees can pay supplementary provident fund.

Therefore, there is still room for ordinary employees to increase the deposit of provident fund, and it is reasonable and feasible for wage taxpayers to use provident fund skillfully to avoid tax.

It should be emphasized that there are two problems to be paid attention to when using individuals to pay supplementary provident fund for tax avoidance: first, taxpayers should open individual supplementary provident fund accounts in their units; Second, although the supplementary provident fund paid by taxpayers every month avoids taxes, it cannot be withdrawn at will, solidifying personal assets.

Pre-tax deduction of donations (1) The Regulations on the Implementation of Individual Income Tax in People's Republic of China (PRC) stipulates that the income donated by individuals to social welfare undertakings such as education and areas suffering from serious natural disasters and poverty-stricken areas through social organizations and state organs in China, which does not exceed 30% of the taxable income declared by taxpayers, can be deducted from their taxable income.

In other words, when individuals donate, they must comply with the law in terms of the way of donation, the investment of donation and the amount of donation, so that this part of donation can be exempted from personal income tax.

The calculation formula is: donation limit = taxable income *30%, allowable deduction of donation amount = actual donation amount (≤ donation limit).

(II) On May 23, 2008, State Taxation Administration of The People's Republic of China issued the Notice on the Collection and Management of Personal Income Tax for Individuals Donating to Earthquake-stricken Areas (Guo Shui Fa [2008] No.55), stipulating that individuals who donate money and materials to disaster-stricken areas through designated institutions can be deducted before tax when paying personal income tax according to the prescribed standards.

The specific provisions are as follows: First, donations made by individuals to disaster areas through withholding units are deducted by withholding units according to the summary of donation credentials issued by government agencies or non-profit organizations and the detailed list of personal donations recorded by withholding units.

Secondly, if an individual directly pays taxes on donations from government agencies and non-profit organizations in the disaster area, the donor should show the donation credentials issued by government agencies and non-profit organizations to the withholding unit in time, and the withholding unit will deduct the tax according to the facts; If an individual declares and pays taxes by himself, the tax authorities shall deduct it according to the facts according to law with the donation receipts issued by government agencies and non-profit organizations.

Finally, when the withholding unit declares the full amount of personal income tax withheld to the tax authorities, it should also submit the summary acceptance certificate (copy) issued by the government agency or non-profit organization, the total donation of each taxpayer in the unit and the donation amount deducted in the current period.

(III) According to the provisions of the document No.60 [2008] of the State Administration of Taxation on the "special party dues" for the earthquake, party member responded to the call of the party organization and actively donated money to the disaster-stricken areas in the form of "special party dues".

Party member's "special party dues" for earthquake relief paid by individuals through party organizations belong to donations to public welfare relief undertakings.

According to the Individual Income Tax Law and its implementing regulations, individual donations in party member can be deducted before paying individual income tax, which is reasonable and feasible.

Third, the choice of types of wealth management products With the development of the financial market, new wealth management products are constantly being introduced.

Many of these wealth management products not only have higher income than savings, but also do not have to pay taxes.

For example, investment funds, purchase of government bonds, insurance, education savings and so on.

Numerous wealth management products undoubtedly provide more choices for the working class.

Deliberate before choosing: it can not only avoid tax, but also rationally disperse assets, and increase the stability and risk resistance of income, which is the financial wisdom of modern people.

(I) Investment bonds are exempt from personal income tax. According to Article 4 of the Individual Income Tax Law, interest on debt and interest on financial bonds issued by the state are exempt from personal income tax.

Among them, debt interest refers to the interest income obtained by individuals holding bonds issued by the Ministry of Finance of China, that is, debt interest; Interest on financial bonds issued by the state refers to the interest income obtained by individuals holding financial bonds issued with the approval of the State Council.

From June 5438 to February 2007, the annual coupon rate of 1 year book-entry treasury bonds was 3.66%; 10-year book-entry special treasury bonds (eight issues) coupon rate 4.41%; The 3-month 19 book-entry treasury bonds in coupon rate are 3.38%, and both yields are good.

Choosing to invest in financial bonds and government bonds issued by countries with 20% personal income tax exemption not only abides by the provisions of the tax law, but also earns some benefits from it. Therefore, buying government bonds is a good channel for most working-class people to avoid taxes and increase income.

(II) Choosing appropriate insurance items to obtain tax benefits According to the relevant laws and regulations of China, residents can enjoy three major tax benefits when purchasing insurance: 1. Personal income tax shall be exempted for housing accumulation fund and medical insurance premium drawn by individuals according to the proportion stipulated by the state or local government and paid to designated financial institutions; 2. Because insurance indemnity is to compensate for personal unexpected and unfortunate losses, it does not belong to personal income and is exempt from personal income tax; 3. Interest income from housing provident fund, medical insurance premium, basic old-age insurance premium and unemployment insurance fund paid and deposited in personal bank accounts according to the proportion stipulated by the state or provincial local governments is also exempt from personal income tax.

Fourth, take advantage of the preferential tax exemption policy, actively use the time difference given by the state to buy and sell stocks or funds, and temporarily exempt personal income tax according to the current tax regulations. At present, this is one of the few projects that temporarily exempt personal income tax from personal property transfer income.

Taxpayers can choose their own stocks or funds to buy and sell, and get the difference income by buying low and selling high, thus indirectly realizing reasonable tax avoidance.

However, because many taxpayers are not professional financial personnel and do not have professional knowledge, they need to consult experts, learn relevant knowledge in time and act cautiously when adopting this method.

5. Using tax preferential policies Tax preferential policies, commonly known as tax expenditures or tax expenditures, are special tax policies given to some taxpayers by the government through certain institutional arrangements in order to support the development of certain regions, industries, enterprises and businesses, or to take care of some taxpayers with practical difficulties.

For example, exempt all or part of the taxes that should be paid, or return them according to a certain proportion of the taxes paid.

Generally speaking, the forms of tax preference are: tax exemption, exemption amount, threshold, tax deduction, preferential tax refund, accelerated depreciation, preferential tax rate, capital preservation, tax preference and deferred tax payment.

The provisions in the tax law that reduce the tax burden of some specific taxpayers are tax preferential policies.

Intransitive verbs actively use communication fees, transportation fees, travel expenses, meal invoices and other provisions of China's tax law: whoever pays communication subsidies, transportation subsidies and meal-missing subsidies in cash should be regarded as wage income, included in the tax basis, and calculated and paid personal income tax.

Anyone who has been reimbursed according to the nature of economic business and obtained legal invoices belongs to the normal operating expenses of the enterprise and does not need to pay personal income tax.

Therefore, the author suggests that taxpayers should reimburse communication expenses, transportation expenses, travel expenses and meals according to true, legal and effective invoices, so as to avoid being mistaken for the nature of tax avoidance subsidies to some extent.

Seven, the use of year-end bonus tax law, the implementation of the annual salary system and performance pay units and individuals to achieve year-end cash annual salary and performance pay according to the taxpayer's annual one-time bonus, as a single month's salary, salary income to calculate tax.

However, all bonuses obtained by employees except the one-time bonus for the whole year, such as half-year bonus, quarterly bonus, overtime bonus, advanced bonus, attendance bonus, etc. , should be combined with the salary and salary income of the month, and pay personal income tax according to the tax law.

This undoubtedly provides taxpayers with a way to avoid taxes.

According to the preferential policies in the document No.9 issued by the State Administration of Taxation [2005], taxpayers can ask their units to issue year-end awards at the expense of a part of semi-annual awards, quarterly awards, overtime awards, advanced awards and attendance awards to realize tax avoidance.

Note that in a tax year, this tax calculation method is only allowed once for each taxpayer.

Eight, through the enterprise to improve employee welfare expenditure, enterprises can use non-monetary payment to improve employee welfare expenditure, such as providing dormitory (apartment) for employees free of charge; Provide free transportation facilities; Provide free meals to employees, and so on.

These expenses paid by enterprises for individual employees can be used as expenses to offset the taxable income of enterprise income tax. Individuals can reduce some taxes that should be borne by individuals without decreasing the actual salary level, which is a double benefit for enterprises.

Nine, the use of grade difference, deduction of project calculation, reasonable tax avoidance planning, and strive to maximize profits. Income from labor remuneration, royalties and property leasing shall be deducted at different levels. Every time the income is less than 4000.00 yuan, the necessary expenditure is 800.00 yuan; If it exceeds 4000.00 yuan, the necessary expenses shall be *( 1-20%) of each income.

After obtaining the corresponding business, we can make reasonable plans and conclude relevant contracts according to the income to maximize profits.