When will the starting point of personal income tax in 2018 be implemented? For many people, is it possible to pay more wages this time? On the afternoon of August 31, the decision on Amending the personal income tax law was adopted by the fifth session of the Standing Committee of the 13th National People's Congress.
When will the starting point 5000 of personal tax be implemented in 2018
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. It means that the salary in October has already paid the individual income tax according to the starting point of 5000.
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.
Starting from January 1 next year, we will combine income from three items, namely, remuneration for labor services, remuneration for contributions and royalties, with wages and salaries to calculate and pay taxes, and make special additional deductions.
Comparison before and after individual income tax adjustment in 2018
Before adjustment of individual income tax threshold
For example: before the adjustment of the starting point of the individual income tax is 3500 yuan, Li's monthly income is 5000 yuan, of which 400 yuan is required to be paid for the individual part of social security. The individual income tax should be 5000-3500-400 = 1100 yuan. According to the personal tax rate table, the tax rate of no more than 1500 yuan is 3%, and the actual personal income tax payable by Li is 33 yuan;
After adjustment of individual income tax threshold
For example, if the starting point of the individual income tax is adjusted to 5000 yuan, then Li Mou's monthly income is 5000 yuan, of which 400 yuan is required to pay the individual part of social security, and the individual income tax should be paid: 5000-5000-400 = - 400 yuan. According to the personal tax rate table, the individual income tax is not paid until it is more than 0 but less than 1500 yuan, but Li Mou's calculation does not meet the conditions for the individual income tax to be paid, which is actually exempt from the individual income tax 。