Occupational annuity refers to a retirement security system provided by enterprises or units for employees, which belongs to the welfare treatment jointly invested by employers and employees. According to the Individual Income Tax Law of People's Republic of China (PRC), occupational annuities are taxable income and are subject to individual income tax. Different from paying taxes on ordinary wages on a monthly basis, paying taxes on occupational annuities has great complexity and uncertainty. According to different situations, the tax payment method and tax rate are different. For example, if the occupational annuity is withheld and remitted by the employer on a monthly basis, the individual tax shall be calculated together with other comprehensive income and paid by withholding and remitting; If the employer pays the occupational annuity in one lump sum and needs to pay a huge amount of tax, it can consider paying it in installments or adopting other relevant tax strategies. In short, the occupational annuity needs to pay personal income tax, and the specific tax payment method and tax rate need to be declared and paid according to different situations.
Does occupational annuity need to be included in the calculation of comprehensive income? According to the individual income tax law, occupational annuity is taxable income and needs to be included in the calculation of comprehensive income. However, in the process of individual income tax declaration, corresponding tax strategies can be adopted according to the actual situation, including installment payment and special deduction, in order to reduce the burden of individual income tax.
Occupational annuity belongs to taxable income and needs to pay personal income tax. In the process of payment and declaration of occupational annuity, we should choose corresponding tax strategies according to different situations to reduce the personal income tax burden. If in doubt, it is recommended to consult relevant professionals or tax authorities.
Legal basis:
"Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China" Article 8 The forms of personal income include cash, physical objects, securities and other forms of economic benefits; If the income is in kind, the taxable income shall be calculated according to the price indicated on the obtained certificate. If there is no physical voucher or the price indicated on the voucher is obviously low, the taxable income shall be verified with reference to the market price; If the income is securities, the taxable income shall be verified according to the par price and market price; If the income is other forms of economic benefits, the taxable income should be verified with reference to the market price.