Yesterday, Premier Li Keqiang said that he would raise the threshold of personal income tax in 2018, but it is still unknown to which price. But according to the current situation, it is likely to rise from 3500 yuan to about 5000 yuan. What do you think is the starting point of personal income tax?
In this year's government work report, it is proposed that in 2018, the threshold of individual income tax will be increased, the deduction of special expenses such as children's education and serious illness medical treatment will be increased, the burden will be reduced reasonably, and the people will be encouraged to increase their income and move towards prosperity through labor.
In response, Huang Shouhong, head of the drafting group of the government work report and director of the Research Office of the State Council, said that the legal authority to determine the threshold standard for individual income tax is vested in the National People's Congress. As for what kind of level to raise, from the perspective of the common people, it is sure that the higher the hope is, the better. But as an important part of the national tax system, the tax system should continue to adhere to and improve, so we need to find a balance point, not to raise the higher the better.
Then, what level will the starting point of individual income tax be raised to? In this regard, the market expects to raise the starting point of individual income tax to 5000 yuan. Dong Mingzhu, chairman of Gree, said that the starting point of individual income tax should be raised to 10000 yuan.
Latest news of individual income tax reform
The reform of individual income tax has always been a hot topic of social concern. The reform of individual income tax adheres to the general principle of "increasing the low, expanding the middle and adjusting the high", that is, the low-income people pay less or not, and the high-income people pay more. The market generally expects that the starting point of this round of individual income tax will be raised to 5000 yuan.
It is understood that in 1980, the threshold of individual income tax was determined as 800 yuan; in 2006, it was increased to 1600 yuan; in 2008, it was increased to 2000 yuan; in 2011, it was increased to 3500 yuan. In 2011, when the threshold of individual income tax was increased by 1500 yuan, the number of taxpayers was reduced from 90 million to 30 million, and the tax coverage was reduced from 28% to about 8%.
According to the data released by the Ministry of finance, the personal income tax in 2017 was 1196.6 billion yuan, an increase of 18.6% year on year, accounting for 8.29% of the total tax revenue of that year. In 2011, the personal income tax revenue was 605.4 billion yuan, accounting for 6.75% of the total tax revenue of that year.
'as for the individual income tax, it is not that the working class pays more, but the high-income class pays less. Therefore, we should reduce the marginal tax rate, coordinate the linkage between the individual income tax and the enterprise income tax, and then reduce the burden of the middle-income group by increasing the deduction and reducing the tax rate. Feng qiaobin, Professor of the Economics Department of the State Administration College, suggested in an interview with the media that one level of zero tax rate could be added, which means that most people should be included in the scope of individual income tax collection and the 'sense of tax' necessary for the establishment of a modern society.
Wang Changyong, executive director of Changping Economic Research Institute, suggested to reporters that the maximum marginal tax rate of individual income tax on wages should be reduced to 30%, and the tax rate level should be simplified.
How to calculate individual income tax
Do you know about the individual income tax? What are the taxpayers and tax objects of the individual income tax? What are the taxable items? How should the individual income tax be calculated?
Personal income tax is a kind of income tax levied on all kinds of income obtained by individuals. The starting point of personal income tax refers to the tax system formulated by the state in order to improve the tax system and better carry out the tax system reform. From September 1, 2011, the amount of personal tax exemption in mainland China was adjusted to 3500 yuan.
Knowledge literacy
What is a 'taxpayer'?
For individual income tax, the income shall be the taxpayer, and the unit or individual that pays the income shall be the withholding agent. The withholding agent shall, in accordance with the provisions of the state, apply for the full amount of withholding by all its members.
What are the tax objects?
Legal object
The taxpayers of individual income tax in China are those who live in China with income, and those who do not live in China and obtain income from China, including Chinese citizens, foreigners who obtain income in China and compatriots in Hong Kong, Macao and Taiwan.
Resident tax payer
An individual who has a domicile in China or has no domicile but has lived in China for more than one year shall be a resident taxpayer and shall bear unlimited tax liability, that is, to pay individual income tax according to law on the income he obtains in China and abroad.
Non resident taxpayer
An individual who has no domicile, does not live in China or has no domicile but has lived in China for less than one year shall be a non resident tax payer and shall bear limited tax liability. Individual income tax shall be paid according to law only for the income he obtains from China.
What are the taxable items?
1. Income from wages and salaries; 2. Income from production and operation of individual businesses; 3. Income from contracted and leased operation of enterprises and institutions; 4. Income from remuneration for labor services; 5. Income from remuneration for manuscripts; 6. Income from royalties; 7. Income from interest, dividend and bonus; 8. Income from lease of property; 9. Income from property transfer; 10. Accidental income; 11. Other income
How should individual income tax be calculated?
Calculation formula of individual income tax
Taxable income = wage income amount - various social insurance premiums (five insurances, one fund, etc.) - starting point (3500 yuan)
Taxable amount = taxable income * tax rate - quick deduction