I. Self-declaration and payment

Self-declaration and payment refers to the way that taxpayers calculate the tax payable by themselves according to the provisions of the tax law within the prescribed tax payment period and report and pay taxes to the tax authorities on time. This method is applicable to personal income tax, enterprise income tax and other taxes.

For personal income tax, taxpayers need to calculate the tax payable according to their own income, according to the tax rate and calculation method stipulated in the tax law, and pay the tax to the tax authorities through online declaration and bank transfer within the prescribed tax payment period.

For enterprise income tax, enterprises need to calculate the taxable income according to their own operating conditions and accounting standards, and declare and pay taxes to the tax authorities according to the specified time nodes.

2. Withholding and remitting

Withholding and paying taxes refers to the way that taxpayers withhold and pay taxes in accordance with the provisions of the tax law when they pay their income through units or individuals that have economic contacts with them. This method is common in income from wages and salaries, income from labor remuneration, etc.

For example, when an employee receives wages and salaries, the employer will deduct personal income tax from the employee's salary in accordance with the provisions of the tax law and pay the deducted tax to the tax authorities on his behalf. In this way, employees do not need to calculate their own taxes, but employers do it on their behalf.

In addition, for some specific industries or specific situations, the tax law may also stipulate that withholding and remittance must be adopted. For example, for the construction and installation industry, real estate industry and other industries, the tax law stipulates that the tax withholding system must be implemented.

To sum up:

There are two ways to pay taxes: self-declaration and withholding. Taxpayers should choose the appropriate payment method according to their actual situation and the provisions of the tax law. For personal income tax and enterprise income tax, taxpayers usually need to calculate their own declared taxes; Wages and salaries can be withheld and remitted.

Legal basis:

People's Republic of China (PRC) tax collection management law

Article 30 provides that:

Withholding agents shall perform the obligations of withholding and collecting taxes in accordance with the provisions of laws and administrative regulations. The tax authorities shall not require units and individuals that have no obligation to withhold or collect taxes according to laws and administrative regulations.

When withholding agents perform their obligations according to law, taxpayers shall not refuse to withhold or collect taxes. If the taxpayer refuses, the withholding agent shall promptly report to the tax authorities for handling.

The tax authorities shall, in accordance with the provisions, pay the withholding agents the handling fees for withholding and collecting and remitting.

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

Article 9 provides that:

Individual income tax shall be paid by taxpayers, and the units or individuals who pay the income shall be withholding agents. If the taxpayer has a China citizenship number, the China citizenship number shall be the taxpayer identification number; If a taxpayer does not have a China citizenship number, the tax authorities shall issue a taxpayer identification number. When a withholding agent withholds tax, the taxpayer shall provide the withholding agent with the taxpayer identification number.