The individual income tax has been issued on January 1 this year, and it has been fully implemented. As for the payment method of individual year-end bonus, the state has also considered taking care of some low-income people, and the year-end bonus can be apportioned monthly.
The newly revised individual income tax law has been fully implemented since January 1 of this year. Taxpayers who have obtained 'comprehensive income' or 'business income' can enjoy six additional deductions, including children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent and supporting the elderly, in addition to the basic deduction of 5000 yuan and the special deduction of 'three insurances and one payment'.
For the year-end bonus issued in 2019, Wu Mei, deputy director of the personal income tax department of Chongqing Taxation Bureau, said that if the annual one-off bonus is calculated separately, it will generate the tax payable or increase the tax burden. At the same time, if the annual one-off bonus policy is applied separately, there may be a 'critical point' phenomenon of sudden increase of tax burden when the tax rate shifts. Therefore, the notice on the connection of preferential policies after the amendment of the individual income tax law (CS [2018] No. 164) specifically stipulates that if a resident individual obtains a one-time bonus for the whole year, he / she can choose the tax calculation method by himself / herself, and ask the taxpayer to determine whether to incorporate the one-time bonus for the whole year into the comprehensive income tax calculation. Withholding units shall pay attention to the payment of bonus so that taxpayers can enjoy the tax reduction bonus. That is to say, the annual lump sum bonus obtained by the taxpayer may not be incorporated into the comprehensive income of the year. The total amount of the bonus divided by the amount of 12 months shall be used to determine the applicable tax rate and the quick calculation deduction according to the monthly tax rate table of the comprehensive income, and the tax shall be calculated separately, so as to avoid the increase of the applicable tax rate after some taxpayers incorporate the annual lump sum bonus into the comprehensive income.
For some low and middle-income people, if the annual one-off bonus is incorporated into the salary income of the year, after deducting the basic deduction of expenses, special deduction, special additional deduction, etc., there may be no need to pay taxes or pay little taxes at all.