How much personal income tax will be deducted from the year-end bonus of RMB 40,000 mainly depends on the individual’s annual income, various deductions and the applicable tax rate. Year-end bonuses are part of wages and salaries and need to be calculated and paid in accordance with the relevant provisions of personal income tax.

1. Understand the tax calculation method of year-end bonus

The tax calculation method of year-end bonus is different from that of ordinary wages and salaries. Generally, separate tax calculation or combined tax calculation are used. The specific method to be used needs to be determined based on the individual's annual income and tax law regulations.

2. Calculate the taxable income

After determining the tax calculation method, it is necessary to calculate the taxable income of the year-end bonus. The taxable income is the balance after deducting relevant deductions (such as basic deductions, special deductions, etc.) from the year-end bonus amount.

3. Determine the applicable tax rate and quick deductions

Based on the taxable income, search the personal income tax rate table to determine the applicable tax rate and quick deductions. The tax rate table differs based on an individual's taxable income throughout the year, so an accurate calculation of the taxable income throughout the year is required to determine the applicable tax rate.

4. Calculate the tax payable

Use the determined tax rate and quick calculation deductions to calculate the tax payable on the year-end bonus. The specific calculation formula is: tax payable = taxable income × tax rate – quick calculation deduction.

5. Notes

When calculating the personal income tax on year-end bonuses, you need to pay attention to the following points:

1. Ensure that the annual income and related deductions are accurate Correct to avoid calculation errors.

2. Pay attention to the latest changes in tax law regulations and ensure that calculations are made in accordance with the latest policies.

3. If you have any questions, you can consult professional tax personnel or relevant agencies to ensure the accuracy and compliance of calculations.

In summary:

How much personal income tax will be deducted for the year-end bonus of 40,000 yuan needs to be calculated based on the individual’s annual income, various deductions and the applicable tax rate. During the calculation process, you need to understand the tax calculation method for year-end bonuses, calculate the taxable income, determine the applicable tax rate and quick calculation deductions, and use the correct calculation formula for calculation. At the same time, relevant matters need to be paid attention to to ensure the accuracy and compliance of calculations.

Legal basis:

"Individual Income Tax Law of the People's Republic of China"

Article 6 stipulates:

Taxable Calculation of income:

(1) The comprehensive income of a resident individual is calculated by deducting RMB 60,000 in expenses, special deductions, special additional deductions and other deductions determined in accordance with the law from the income in each tax year. The balance is taxable income.

"Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China"

Article 28 stipulates:

Resident individuals receive a one-time annual bonus , which complies with the provisions of the "Notice of the State Administration of Taxation on Adjusting the Methods for Calculation and Collection of Personal Income Tax on Individuals Obtaining One-time Bonuses for the Year" (Guo Shui Fa [2005] No. 9), before December 31, 2021, it will not be incorporated into the current year's comprehensive For income, the amount obtained by dividing the annual one-time bonus income by 12 months shall be determined according to the monthly converted comprehensive income tax rate table attached to this notice, and the applicable tax rate and quick calculation deduction shall be determined, and the tax shall be calculated separately. The calculation formula is: tax payable = annual one-time bonus income × applicable tax rate – quick calculation deduction.