Since January 1, 2019, the new individual income tax policy has been fully implemented, and the new policy after individual income tax adjustment has brought great benefits to people's interests. In the new individual income tax policy, there are many new regulations that need us to learn new operating methods. Therefore, it also affects the normal payment of wages in many companies. Many companies need to delay the payment of wages because of the change of tax deduction. The small editor of this article will tell you about the exemption of the new individual income tax policy and the tax reduction dividends you can enjoy.
There are many highlights in this individual income tax adjustment, and many measures pay more attention to benefiting the people's livelihood. In October 2018, the first step of individual income tax adjustment began to be implemented, and the threshold of individual income tax was adjusted to RMB 5000 per month. In December 2018, the regulations for the implementation of the individual income tax law and the Interim Measures for special additional deduction of individual income tax were successively promulgated. The tax method was changed to 'withholding and prepayment + final settlement', and six special additional deductions related to children's education and supporting the elderly were also specified. In 2019, when paying personal income tax, everyone will feel the real red envelope of tax reduction.
Personal income tax is not only related to everyone's money bag, but also an important part of national fiscal revenue. In 2017, individual tax revenue reached 11966.6 billion yuan, and personal income tax became the third largest tax after value-added tax and enterprise income tax. Therefore, in addition to the impact on individual income, the reform and adjustment of individual income tax is also an important link in the reform of national tax system.
The reporter interviewed how the individual income tax reform and adjustment will benefit the people's livelihood and what real red envelopes we can receive.
Tax reduction bonus for tax exemption adjustment
The new tax law stipulates that the exemption of individual income tax is adjusted to 60000 yuan per year, or 5000 yuan per month. However, it is worth noting that this 60000 yuan refers to the threshold after the merger of the four incomes of wages and salaries, labor remuneration, manuscript remuneration and royalties. In terms of tax rate, some tax rate ranges of individual income tax were further optimized and adjusted, the range of low tax rates of 3%, 10% and 20% was expanded, the range of tax rates of 25% was reduced, and the range of higher tax rates of 30%, 35% and 45% remained unchanged.
Xiao Yang works in a public institution. His monthly income has been about 10000 yuan. When he earns more, he can reach about 15000 yuan. Before the implementation of the new threshold of individual income tax, he would pay more than 500 yuan a month. Now, the taxes he has to pay are reduced to less than 500 yuan. " The new threshold and tax reduction are still quite obvious. " Xiao Yang said.
Xiao Wang also said that the new threshold and tax rate will make the ordinary working class feel a significant tax reduction, 'because many people who originally had a tax rate of 10% have been reduced to 3% this time.'
According to the relevant person in charge of the Ministry of finance, the proportion of taxpayers of individual income tax in urban employment will be reduced from 44% to 15% after the amendment only based on the factor that the exemption is increased to 5000 yuan per month. Many people's personal income tax will become zero after the exemption is increased.
The new exemption mentioned above is the exemption after the combined calculation of wage and salary income, labor remuneration income, manuscript remuneration income and royalty income, which also indicates a major adjustment in this individual income tax reform.
In the past, individual income tax was levied by classification. The new individual income tax law, which will be implemented in 2019, combines income from wages and salaries, income from remuneration for labor services, income from remuneration for manuscripts and income from royalties into comprehensive income. A unified excess progressive tax rate table is applied for comprehensive taxation. The withholding agent withholds and prepays monthly (Times), and the taxpayer makes final settlement and payment on an annual basis. " This personal income tax reform is a milestone in the history of China's tax system reform. Personal income tax has realized the transformation from classified tax system to comprehensive and classified tax system. " Zhang Bin, a researcher at the Institute of financial strategy of the Chinese Academy of Social Sciences, told reporters.
What does' withholding and prepayment 'mean? Take Xiao Yang as an example. Xiao Yang's salary is first withheld and prepaid according to the new threshold and tax rate table every month, but this is not the final payment of individual income tax. At the end of the year, a full year of liquidation and remittance will be carried out, and the income from wages and salaries, labor remuneration, manuscript remuneration and royalties will be comprehensively taxed, with more refunds and less compensation. This can effectively reduce the individual income tax paid by some people with unstable income.
"The collection of individual income tax in China has always been based on withholding and payment. After the comprehensive collection, enterprises and institutions should continue to withhold and pay according to law, and taxpayers also need to report and settle the payment on an annual basis, which not only puts forward higher requirements for the work of tax authorities, It also requires taxpayers to have a self-conscious, good tax awareness and a high level of tax treatment, "long Zhaohui, associate professor of economics at Lingnan College of Sun Yat sen University, told reporters.
Zhang Bin said that after adopting the new collection method, more and more taxpayers will directly face the tax authorities to handle the final settlement and payment of individual income tax, which plays an important role in enhancing the awareness of taxpayers. " Facing the tax bureau directly will make everyone feel the rights and obligations of taxpayers, right & lsquo; Spend taxpayers' money & rsquo; Will have a more intuitive feeling. " Zhang Bin said.
Special additional deduction is very beneficial
For individuals, the impact of the new collection method is not great, and units can help handle it. However, the special additional deduction of individual income tax affects everyone's actual interests, because it is a real tax reduction red envelope that everyone can enjoy.
On December 22, 2018, the State Council issued the notice on printing and distributing the Interim Measures for special additional deduction of individual income tax. In terms of deduction scope, deduction standard, deduction method, deduction link, collection and payment operation and other elements, the implementation of special deduction of individual income tax has been carefully arranged and designed, which will come into force on January 1, 2019. Special additional deductions include six parts: Children's education, continuing education, serious illness medical treatment, housing loan interest, housing rent and supporting the elderly.
-Deduction of loan interest
Xiao Yang welcomed the special additional deduction, which really lightened his burden. In 2018, Xiao Yang bought a house in Beijing and borrowed a lot of money, which had a great impact on his daily life. When he heard that special additional deductions could be made, he immediately asked the financial department of the unit how to make deductions. " If you can reduce it a little, you can deduct part of the tax before tax, pay less tax, and make your income a little more. " Xiao Yang said.
For the deduction of loan interest, the Measures stipulate that the interest expense of the first set of housing loan incurred by the taxpayer himself or his spouse using the personal housing loan of commercial bank or housing provident fund to buy a house for himself or his spouse can be deducted according to the standard quota of 12000 yuan per year during the repayment of the loan. As agreed by both husband and wife, one of them may choose to deduct.
-Deduction of rental
Xiao Yang can enjoy the special additional deduction for buying a house with a loan, while his good friend Xiao Zhang enjoys the special additional deduction for renting a house. Like Xiao Yang, Xiao Zhang works in a public institution in Beijing. He has been renting his own house since he started working. The monthly rent is more than 3000 yuan. When paying individual income tax in the future, Xiao Zhang will enjoy a fixed special additional deduction of 1500 yuan per month. In an interview, Xiao Zhang expressed his joy, 'after all, I still pay a little less tax every month'.
For the rental of houses, the Measures stipulate that the taxpayer himself and his spouse have no houses in the city where the taxpayer works, but the rental expenses incurred in renting houses in the main working cities can be deducted according to the following standards: the deduction standard for the rented houses located in municipalities directly under the central government, provincial capital cities, cities specifically listed in the state plan and other cities determined by the State Council is 18000 yuan per year (1500 yuan per month); Except City, city registered residence city with more than 1 million registered population is 13 thousand and 200 yuan (1100 yuan per month), and the other cities with less than 1 million registered residence population are deducted from the standard of 9600 yuan (800 yuan per month).
-Deduction of serious illness medical treatment
Many people are happy that the medical expenses for serious diseases are included in the special additional deduction. If there is such expenditure, after deduction, it can effectively reduce the family burden and will not affect the family's daily life because of serious illness expenditure. Specifically, in a tax year, the part of the taxpayer's medical expenses related to basic medical insurance that exceeds 15000 yuan after deducting the medical insurance reimbursement (referring to the self paid part within the scope of the medical insurance catalogue) shall be deducted according to the facts within the limit of 80000 yuan when handling the annual final settlement. " The deduction limit in the exposure draft is 60000 yuan, which is set at 80000 yuan in the officially released measures, an increase of 20000 yuan, reflecting the state's care for the families of seriously ill patients. " Long Zhaohui said.
-Deduction for children's education
The special additional deduction of education expenditure is also an important part of the special additional deduction of the new tax law. This includes two parts: Children's education and continuing education. The deduction of children's education refers to the relevant expenses of the taxpayer's children receiving full-time academic education, which shall be deducted according to the standard quota of 1000 yuan per child per month. Academic education includes compulsory education (primary and junior high school education), high school education (ordinary high school, secondary vocational and technical education), and higher education (college, undergraduate, master's and doctoral education). Children who have reached the age of 3 and are in the stage of preschool education before entering primary school shall be deducted according to the quota of 1000 yuan per month.
-Deduction for continuing education
The part of continuing education refers to the expenditure of taxpayers for continuing education of academic qualifications (degrees) in China, which shall be deducted according to the quota of 400 yuan per month during the period of academic qualifications (degrees) education. The deduction period for continuing education with the same academic degree (degree) shall not exceed 48 months. The expenses of taxpayers for continuing education of vocational qualifications of skilled personnel and professional technicians shall be deducted according to the quota of 3600 yuan in the year when they obtain relevant certificates.
Long Zhaohui said that both the special additional deduction for children's education and the special additional deduction for continuing education can not only reduce the burden on parents or themselves, but also stimulate the enthusiasm of the public, help people establish a good habit of lifelong learning, and continuously improve the quality and ability of China's labor force.
-Deduction for supporting the elderly
In addition, there are special additional deductions for supporting the elderly. The Measures stipulate that the maintenance expenses of taxpayers supporting legal dependants aged 60 (including) can be deducted according to the following standard quota: if the taxpayer is an only child, it shall be deducted according to the standard quota of 24000 yuan per year (2000 yuan per month); If a taxpayer is not an only child, it shall share the deduction amount of 24000 yuan per year with its brothers and sisters. This will help to carry forward the traditional virtue of filial piety to the elderly and relatives, and let taxpayers better honor the elderly.
Tax reduction dividends shall be truthfully declared
For the six special additional deductions, if there is one or more of them, there will be 1000 yuan to thousands of yuan in the monthly deduction. Long Zhaohui said that the implementation of special deduction will effectively reduce the tax burden of taxpayers. According to individual differences and considering their different burden and fair tax burden, different tax reduction measures shall be taken in education, medical treatment, housing, pension and other aspects closely related to people's life