Latest calculation method of individual income tax for 2018 year-end bonus latest preferential policies for individual income tax for 2018 year-end bonus
4hw.com.cn: as 2018 approaches the end of the year, many companies begin to give year-end bonuses to employees. Many students are concerned about whether there is any personal tax preference for year-end bonuses after the implementation of the new tax law. Let's take a look at the latest policies and personal tax calculation methods for year-end bonuses.
The Ministry of Finance and the State Administration of Taxation issued the notice on the convergence of preferential policies after the amendment of the individual income tax law on the evening of the 27th.
The notice stipulates that the annual one-time bonus obtained by individual residents is in line with the provisions of the notice of the State Administration of Taxation on adjusting the methods for calculating and Levying Individual Income Tax such as obtaining annual one-time bonus (Guo Shui Fa [2005] No. 9). Before December 31, 2021, it will not be incorporated into the comprehensive income of the current year, and the amount obtained by dividing the annual one-time bonus income by 12 months, The applicable tax rate and quick calculation deduction shall be determined according to the monthly converted comprehensive income tax rate table attached to this notice, and the tax shall be calculated separately.
From January 1, 2022, the annual one-time bonus obtained by individual residents shall be incorporated into the comprehensive income of the current year to calculate and pay individual income tax.
In other words, the preferential policy of year-end bonus can be used for another three years until December 31, 2021.
So, during the transition period, how to calculate how much tax should be paid for the year-end bonus? According to the notice, the calculation formula is: tax payable = annual one-time bonus income & times; Applicable tax rate - quick calculation deduction.
Comprehensive income tax rate after monthly conversion.
For example, Xiao Liu, the employee of the enterprise, has a monthly salary of 6000 yuan, and the unit will pay a one-time year-end bonus of 20000 yuan in January 2019. Then, divide Xiao Liu's 20000 yuan year-end bonus by 12 to 1666.7 yuan. According to the monthly converted comprehensive income tax rate table, the applicable tax rate is 3%, and the quick calculation deduction is 0. Therefore, the individual income tax payable for Xiao Liu's year-end bonus is 20000 & times; 3% = 600 yuan.
Pay attention to the new year-end bonus threshold
According to the monthly converted comprehensive income tax rate table, a new critical point of year-end bonus will be generated, resulting in the phenomenon of "one yuan more year-end bonus and one thousand yuan less income".
For example, 36000 yuan is a critical point. If 36000 yuan year-end bonus is paid, the individual income tax needs to be paid 36000 & times; 3% = 1080 yuan, 34920 yuan.
If you pay one yuan more, that is, 36001 yuan of year-end bonus, you need to pay 36001 & times of individual income tax; 10% - 210 = 3390.1 yuan, 32610.9 yuan.
In contrast, the extra one yuan year-end bonus will reduce the income by 2309.1 yuan.
In addition, 144000, 300000, 420000, 660000 and 960000 are also critical points. Remind your small partners and financial personnel to pay attention to these new critical points of year-end bonus, otherwise you will suffer losses.