The new tax law is passed! The starting point is 5000 yuan per month, which will be implemented from October 1. The new tax law will be announced. Do you need to pay tax when comparing your salary?
On the afternoon of December 31, the decision on Amending the personal income tax law, which attracted much social attention, was voted and adopted at the fifth meeting of the Standing Committee of the 13th National People's Congress. So far, the new tax law after seven major repairs has officially appeared!
The starting point is determined to be 5000 yuan per month. According to the new tax law, the comprehensive income of individual residents shall be the taxable income after deducting 60000 yuan of expenses from the income of each tax year and the balance after special deduction, special additional deduction and other deductions determined according to law.
Tax cuts are skewed towards low and medium income. According to the new tax law, after this amendment, some tax rate intervals of individual income tax have been further optimized and adjusted, expanding the three low tax rate intervals of 3%, 10% and 20%, reducing the 25% tax rate interval, and the three higher tax rate intervals of 30%, 35% and 45% remain unchanged.
A number of expenses are deductible. In the future, when calculating individual income tax, in addition to the basic deduction standard and special deductions such as "three insurances and one fund", special additional deductions have also been added. According to the new tax law, special additional deductions, including children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, supporting the elderly and other expenditures, shall be determined by the State Council and reported to the Standing Committee of the National People's Congress for the record.
The new tax law shall come into force on January 1, 2019, and the latest starting point and tax rate shall come into force on October 1, 2018. According to the new individual tax law, from October 1, 2018 to December 31, 2018, the taxable income of the taxpayer shall be the balance of the monthly income minus the expenses of 5000 yuan and the special deduction and other deductions determined according to law. The tax shall be calculated and paid according to the monthly conversion according to the personal income tax rate table (applicable to comprehensive income), and the additional deduction expenses shall not be deducted.