The Year-End Bonus Tax Adjustment Method Will Be Adjusted &Nbsp In September; The Less The Bonus, The Less Income It Will Get.

The year-end bonus will not be "segmented tax" after the revision of the tax law, but the tax assessment method will also be adjusted.

Yesterday, the reporter was informed that the State Administration of Taxation has formulated and issued the notice of the State Administration of Taxation on Revising the provisions on the collection of personal income tax (the forty-seventh announcement of the State Administration of Taxation on 2011), not only modified the tax rate table according to the revised "personal income tax law", but also revised the tax counting method for one-year bonuses in order to avoid the problem of "the year-end bonus, the less after tax", "the 1 yuan more, and the personal tax paid more than 20 thousand".

The new rules will be implemented in September 1st this year.

Quick calculation deduction

At the beginning of this year, the newspaper reported that the income before tax is one yuan after tax, which reveals that the more the year-end bonus is, the less money it will have after tax, even more than 1 yuan. The individual tax should be paid more than 20 thousand yuan (at that time, the old standard of grade 9) was adopted.

For example, Ms. Chen received the year-end bonus of 24000 yuan last year. After deducting the tax, the money she got last was 21625 yuan. The year-end bonus of Ms. Wang last year was 25000 yuan, which was 1000 yuan more than that of Ms. Chen. After deducting the tax, the only money she got was only 21375 yuan, which was 250 yuan less than that of Ms. Chen.

For example, the total annual income of Zhang is 480 thousand yuan, the amount of tax payable is 118625 yuan, and the final after tax income is 361 thousand and 375 yuan.

Li's annual bonus is 480 thousand and 1 yuan, the taxable amount is 140625.3 yuan, the final after tax income is 339 thousand and 376 yuan, but it is 21 thousand and 999 yuan less than Zhang.

The State Administration of Taxation believes that the calculation result violates the basic principle of "distribution according to work, more work and more gains" in the primary stage of socialism, and also attacks the enthusiasm of the masses to achieve the goal of getting rich by labour.

According to the reporter's understanding, in order to facilitate the calculation of wages and salaries, we adopt a simplified algorithm of the applicable tax rate and quick deduction, but this method has problems in the year-end bonus calculation.

The current year-end bonus tax is calculated by dividing the year-end bonus by 12, based on the determined business tax rate and the quick deduction.

The State Administration of Taxation explains that the root cause of these problems is actually a mathematical problem, which is the "quick deduction" in the tax rate table.

Because the quick deduction is calculated according to the tax rate table, the different tax rate tables can calculate different quick deductions, so different quick calculation deductions are matched with the corresponding tax rate tables.

When the annual bonus is determined by dividing it by 12, it has actually changed the tax grade distance and the tax free distance in the tax rate table. At this point, the quick deduction will need to be recalculated, and the fast deductible deduction calculated on the basis of the tax rate table of wages and salaries can no longer be used.

There are two kinds of year-end awards.

To this end, the State Administration of Taxation has provided two tax assessment methods for the annual one-off bonus in the announcement on the revision of certain provisions on the collection of personal income tax, and added a new tax rate table (including quick calculation deduction) applicable to the annual one-time bonus.

Generally speaking, the one-year bonus should be paid as a monthly salary and salary separately.

One way is to divide the employee's one-time bonus in one month into 12 months, determine the applicable tax rate according to its quotient, and then calculate the amount of tax payable according to its quotient and applicable tax rate, then multiplied by 12 months, that is, the annual total bonus tax payable.

Another way is to calculate the tax payable directly according to the annual rate applicable to the one-off bonus.

The formula is: tax payable = taxable income * applicable tax rate - quick deduction.

The reporter calculated that after the above new method was taxed, "

It is worth noting that if the monthly wages and salaries of employees are lower than those stipulated in the tax law (3500 yuan / month) at the end of the year end bonus payment, the annual bonus should be deducted from the balance of "the difference between the wages and salaries of employees and the deduction standard of wages and salaries".

The "announcement" clearly stipulates that the relevant provisions shall be implemented from September 1, 2011, where the previous provisions are inconsistent with this notice, and shall be implemented in accordance with the provisions of this circular.

Year-end bonus tax cases

(for the convenience of comparison, new cost deduction criteria and tax rates are used in the cases, and assume that the monthly income of the case is above 3500 yuan).

Case 1. Ms. Chen received the year-end award of 18000 yuan in December this year, and Wang's year-end award was 19000 yuan.

If we use the old method to calculate:

Ms. Chen: 18000 yuan 12=1500 yuan, the corresponding tax rates and quick deductions are 3%, 0, the tax payable is =18000 * 3%-0=540 yuan, and 17465 yuan after tax.

Ms. Wang: 19000 yuan, 12 yuan, 1583 yuan, corresponding tax rates and quick deductions are: 10%, 105, tax payable =19000 * 10%-105=1795 yuan, 17205 yuan after tax.

If we use the new method 1 to calculate:

Ms. Chen: 18000 yuan 12=1500 yuan, the corresponding tax rates and quick deductions are: 3%, 0, tax payable = (1500 * 3%-0) * 12=540 yuan, 17465 yuan after tax.

Ms. Wang: 19000 yuan, 12 yuan, 1583 yuan, the corresponding tax rates and quick deductions are 10% and 105, the tax payable is [(19000 12) x 10%-105] * 12=640 yuan, 18360 yuan after tax.

After changing the calculation method, the more the year-end bonus, the more tax deductible, but the more income after tax.

For example, 2. total annual awards are 660 thousand yuan, and Li's year-end bonus is 660 thousand and 1 yuan.

If we use the old method to calculate:

Zhang Zong: 660000 yuan 12=55000 yuan, the corresponding tax rates and quick deductions are 30%, 2755, the tax payable is =660000 * 30%-2755=195245 yuan, and 464755 yuan after tax.

Li: 660001 yuan, 12 yuan, 55000.08 yuan, corresponding tax rates and quick deductions are: 35%, 5505, tax payable =660001 * 35%-5505=225495.35 yuan, 434505.65 yuan after tax.

Li total annual bonus is 1 yuan, but after tax income is less than 30 thousand yuan.

If the new method 2 calculates:

Zhang: 660000 corresponding tax rates and quick deductions are: 30%, 33060, tax payable =660000 * 30%-33060=164940 yuan, 495060 yuan after tax.

Li: 660001 the corresponding tax rates and quick deductions are: 35%, 66060, the taxable amount is =660001 * 35%-66060=164940.35 yuan, and the income after tax is 495060.65 yuan.

Li total annual bonus is 1 yuan, and after tax income is slightly more than 0.65 yuan.