Basic Skills Of Personal Income Tax Planning

In recent years, with the increasing income of urban residents, personal income tax has become one of the most frequently used taxes.

Personal income tax planning has become a hot topic in life.

In January 1, 1994, China began to implement the "personal income tax law" applicable to Chinese and foreign individuals. It carefully studied and analyzed the principles and specific provisions of the "personal income tax law".

[case 1]

A brewery is a seasonal production enterprise. The workers in this enterprise have time wages, and they only produce four months in a year.

During the period, the average wage of employees was 2000 yuan / month.

[Planning Analysis 1]

According to the actual situation of their enterprises, in the four months of production, every employee of the enterprise shall pay the personal income tax monthly (the local permitted deduction of the cost standard is 800 yuan / month) (2000-800) x 10%-25=95 (yuan).

Four months, each person should receive a personal income tax of 380 yuan.

[Planning Analysis 2]

If an enterprise pays an annual salary of 8000 yuan (2000 yuan x 4) for each employee, it will be equally distributed to each month, that is, if wages are paid in a non productive month, the wages and salaries of the employees of the enterprise will not reach the threshold.

[case 2]

Xiao Liu, general manager of A company, has a monthly salary of 1500 yuan (including all kinds of allowances and monthly bonus), and the year-end bonus is 2000 yuan for the year-end bonus. At the same time, the county government has awarded 3000 yuan reward for its good operation.

[Planning Analysis 1]

Here you can make a comparison in three months.

If Xiao Liu receives a 5000 yuan bonus in December, the personal income tax payable in December, January and February will be (the local allowed to deduct the cost standard is 800 yuan / month):

The income tax payable in December was (1500+5000-800) x 20%-375=765 (yuan).

The income tax payable in January was (1500-800) x 10%-25=45 (yuan).

The income tax payable in February was 45 yuan above the same level.

In this way, Xiao Liu paid 855 yuan in personal income tax for three months.

[Planning Analysis 2]

If Xiao Liu received two yuan from the government in December and January and 3000 yuan in January and February for two times, the personal income tax should be paid as follows:

The income tax payable in December was (1500+1500-800) x 15%-125=205 (yuan).

The income tax payable in January was (1500+1500+1000-800) x 15%-125=355 (yuan).

The income tax payable in February was (1500+1000-800) x 10%-25=145 (yuan).

A total of 705 yuan was collected in three months.

[planning results]

In this way, a total of 150 yuan will be paid on the personal income tax after planning.

[special note]

This example reduces the tax rate by applying the income balance to each month to reduce the applicable tax rate.

[case 3]

Wang Peng, a software developer for an administrative unit, develops software in his spare time for innovative computer companies and provides one year's maintenance service. According to the contract, he can get 24000 yuan of labor remuneration.

[planning analysis]

Wang Peng can ask the other party to pay the remuneration in advance, or ask the other party to pay the software maintenance period for 12 months and pay 2000 yuan per month.

Although there will be a certain risk of default in the latter way of payment, the advantages and disadvantages of the two payment options will be changed after considering the individual income tax factors.

If the other party pays one time, Wang Peng will be entitled to a personal income tax of 24000 x (1-20%) x 20%=3840 (yuan).

If the other party pays separately, Wang Peng should receive personal income tax (2000-800) x 20%=240 (yuan) per month.

A total of 2400 yuan is paid in 12 months, which is less than one payment and 1440 yuan in personal income tax.

[special note]

In this case, Wang Peng can ask the other party to pay the labor remuneration on a monthly basis, because it is a multi service remuneration, which can deduct 20% of the cost each time.

After several times of apportionment and deduction, the tax burden can be reduced.