Tax Planning For Personal Income Tax

1. taxpayers' tax planning: two kinds of taxpayers, including tax payers and non residents.

The taxpayers of the residents pay their personal income tax on the income of the whole Qing who comes from within or outside China; instead of paying the individual income tax to the Chinese people, they only pay income from the territory of China.

Obviously, non resident taxpayers will bear a lighter tax burden.

Foreigners, overseas Chinese, and compatriots in Hongkong, Macao and Taiwan who live in China, if they leave for more than 30 days in a tax year or have accumulated more than 90 days on a number of occasions, shall be regarded as "90 day rules" for short. They will not be regarded as living in China throughout the year.

Firmly grasping this yardstick will avoid being a resident tax paying person of personal income tax, and only pay personal income tax on income derived from China.

2., enjoy tax deductions with additional deductions. Under normal circumstances, the income from wages and salaries will be taxable income after deducting 800 yuan of monthly income.

However, on the basis of a monthly deduction of 800 yuan in wages and salaries, some people will enjoy an additional deduction of 3200 yuan.

The main areas include: (1) foreign nationals who work and earn wages and salaries in foreign invested enterprises and foreign enterprises in China; (2) foreign experts who apply for jobs and obtain wages and salaries in enterprises, institutions, social organizations and state organs in China; and (3) individuals who have residence in China but are employed outside China or are employed to obtain wages and salaries; and (4) others who have obtained wages and salaries from the Ministry of finance.

The 3. points of tax planning for declaration of tax are: personal income tax, income from remuneration paid by the taxpayer, income from royalties, royalties, interest, dividends, bonus income, property lease income, incidental income and other income, etc., are seven taxable items.

As the deduction cost is based on the size of each taxable income, two standards of quota and fixed rate are stipulated respectively. It is very important to accurately divide the "times" from the perspective of safeguarding the legitimate interests of taxpayers.

The remuneration for only one - time income is obtained once.

For example, accepting client's entrustment for design and decoration, the income gained after completion is once.

Where the remuneration for a continuous service is obtained from the same matter, the income earned within one month shall be once.

The income obtained from the republication of the same work shall be regarded as a personal income tax collected from another remuneration.

The same work is first published in newspapers and then published, or published first, and then published in newspapers and periodicals. It should be regarded as the two payment of remuneration.

That is, serial as a publication as another.

Income from lease of property is earned within one month.

4. the tax law for tax planning deducting overseas income: the income obtained by taxpayers from outside China is allowed to deduct the amount of personal income tax paid abroad in the amount of tax payable.

However, the deduction amount shall not exceed the amount of tax payable in accordance with the concise provisions of China.

The People's Republic of China personal income tax implementation Ordinance stipulates that individuals who deduct their income through the social organizations and state organs in China to the educational and other public welfare undertakings and donations from areas with serious natural disasters and poverty-stricken areas, the amount that does not exceed 30% of the taxable income declared by taxpayers can be deducted from the taxable income of 5..

That is to say, when an individual donates a donation, he must comply with the regulations in the way of donation, donation and donation, so that this part of his donation will be exempted from personal income tax.