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How much money can be saved by raising the starting point of personal income tax

Individual income tax is a kind of income tax levied by the state on individual income. The threshold of individual income tax refers to the deduction standard of individual income tax expenses. Before, the threshold of individual income tax was 3500 yuan, that is, users with a monthly income of more than 3500 yuan after deducting three insurances and one gold will pay individual income tax.

At the fifth meeting of the Standing Committee of the 13th National People's Congress, the individual income tax law was revised, and the individual income tax threshold was increased from 3500 yuan / month to 5000 yuan / month, that is, after deducting three insurances and one gold, those whose monthly income is less than 5000 will not pay individual income tax. It will be implemented first from October 1, 2018.

The tax rate of individual income tax varies according to the wage income of employees. The tax items of individual income tax can be divided into three categories: labor income, business income and other income. The tax rate will vary according to the income. The taxable income = (monthly income - five insurances and one fund - threshold - other deductions determined according to law - special additional deductions) * applicable tax rate - quick calculation deduction. The increase in the threshold of individual income tax and the expansion of the grade distance of low-grade tax rates will reduce the burden of personal taxes and increase the actual income.

How much can we save by raising the threshold of personal income tax

For example, if employee a earns 5000 after deducting three insurances and one fund, the tax to be paid is 45 yuan without raising the threshold of individual income tax. After the personal income tax threshold is raised to 5000, the employee does not have to pay personal income tax.

For example, the salary of employee B after deducting the three insurances and one fund is 10000. Calculated at the threshold of 3500, the personal income tax to be paid is 745 yuan, while calculated at the threshold of 5000, the personal income tax to be paid is 290 yuan, which is 455 yuan less than the previous tax.

Through the above calculation, we can see that after the state adjusts the threshold of individual income tax, it is beneficial to the people who pay taxes, reduces the burden of paying taxes, and increases the actual income of everyone every month.

How to calculate the individual income tax of year-end bonus?

At the end of the year, many small partners are concerned that after the implementation of the new tax law, can the year-end bonus still enjoy the previous individual income tax preference? Now, the answer to this question is finally clear. 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 preferential policy of year-end bonus can be used for another 3 years

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.

How to pay tax on the year-end bonus during the transition period?

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.

△ consolidated 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.

Note: does the new year-end bonus really have a critical point?

There is a problem with the statement of critical point. There is no case that you have to pay thousands of more taxes for one more dollar. The excess part is only taxed at a high tax rate, not all.