State Administration Of Taxation: Year-End Bonus Tax New Legal System Forgery

The revised personal income tax law will be implemented next month, and the new tax rate will be applied to the salaries and salaries.

Recently, a number of media, including CCTV, reported that the State Administration of Taxation has issued a notice on Revising the provisions on certain issues of personal income tax, providing a new tax assessment method for one-year bonuses, which is divided into 12 months, and separately as a monthly income tax, so as to avoid the phenomenon of "more year-end awards and less income after tax".

Yesterday, the State Administration of Taxation issued a rumor by Xinhua news agency that it had never issued the document and the draft, which was forged.

CCTV and many other media reports

A preliminary survey of Nandu journalists revealed that the related reports first appeared in August 13th.

A newspaper published a report entitled "adjusting the tax method for the year-end bonus from September, and avoiding more than 1 yuan in excess of 20 thousand". The State Administration of Taxation has recently formulated and issued the "47 announcement", which provided "two kinds of annual one-off bonus income tax assessment methods, and added a new tax rate table (including quick counting deduction) applicable to the annual one-time bonus."

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

At present, our country adopts the progressive progressive tax rate. In order to facilitate the calculation, the simplified algorithm is converted to the applicable tax rate and the quick deduction.

However, when calculating the year-end bonus tax, this simplified algorithm may lead to "more bonus at the end of the year, less money after tax", or even "more than one yuan, more than 20 thousand yuan tax".

Reported that the State Administration of Taxation explained that the root cause of these problems is a mathematical problem, the problem is in the tax rate table "quick deduction".

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.

After the publication of the above report, it was reprinted by several websites.

On the morning of the 14 morning, CCTV news channel "Chao Wen world" also reported on the "year-end bonus tax adjustment and avoiding less work".

In addition to the addition of a public interview, the rest of the case, including the case, is basically the same as the above report.

"Bulletin 47" circulated online.

However, the "Announcement No. 47", which is believed by many media, can not be found on the website of the State Administration of taxation.

The website policies and regulations column has recently been updated as "notice on the implementation of the revised personal income tax law" (State Administration of Taxation Announcement No. forty-sixth 2011), and there is no change in the contents of the one-time bonus tax.

It is worth noting that a notice issued by the State Administration of Taxation on certain issues concerning the collection of personal income tax has been circulated on the Internet recently. It is said that this provision has been amended by the Council of State Administration of taxation.

The revised regulations shall come into effect on September 1, 2011, and the inscription shall be "State Administration of Taxation", with the time being "July 31, 2011".

The article subdivides 21 items.

Fifth of them make new regulations on the issue of "one year's one-time bonus income tax", which is the same content as the above report.

In addition, the article also makes provisions on problems such as taxation of remuneration, scope definition of wage earners, and so on.

However, where the source of this article is, whether the relevant media coverage is based on this article is not known.

Experts say falsification bulletin is rare.

Yesterday, the State Administration of Taxation issued a statement through Xinhua news agency, said: "someone recently embezzled the name of the General Administration of Taxation, and issued the" Notice of the State Administration of Taxation on Revising the provisions on certain issues of personal income tax "(2011 No. 47).

The State Administration of Taxation said that the document had never been issued and the draft was read. The document and the draft were forged, and the power to investigate the legal liability of forged official documents will be exercised according to law.

Ye Qing, deputy director of the National People's Congress and deputy director of the Hubei Provincial Bureau of statistics, said that the "forgery notice" is very rare in the history of China's tax system.

"What is the purpose of their forgery?"

Ye Qing thinks there are two possibilities.

First, the related reports were plotted by some companies or tax consulting companies, causing concern through media reports and forcing the State Administration of Taxation to reduce taxes.

Two, the State Administration of Taxation once had such a plan but was overthrown, but the draft circulated to the media.

Abstract

Hearsay tax calculation method

In the bulletin, the State Administration of Taxation has provided two kinds of tax calculation methods for the annual one-time bonus, and added a new tax rate table (including quick calculation deduction) applicable to the annual 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.

Prescribed taxation method

Taxpayers get a variety of name bonuses at a time and can be assessed for 12 months.

Generally, all bonus should be combined with the wages and salaries of the month to collect personal income tax.

However, if the applicable tax rate is increased after the merger calculation, it is possible to determine the applicable tax rate based on the bonus in the month plus the monthly salary and salary, the deduction of the balance after the deduction of the monthly fee, and then the monthly salary and salary plus all the bonus, minus the balance after the deduction of the monthly fee, and calculate the personal income tax according to the applicable tax rate.

No tax shall be levied on the amount of taxable income calculated according to the above method.

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viewpoint

Monthly income may be taxed less.

The algorithm in the related reports is correct in theory, and the algorithm of the State Administration of taxation is also reasonable, which is theoretically justified.

The annual tax rate in China is calculated on an annual basis, while the daily tax is calculated on a monthly basis.

If the total income is divided into 12 according to the total annual income, the tax rate will be less if the tax rate is determined according to the monthly average income.

In the long run, the reform direction of our personal tax is to combine the comprehensive and the classification. The tax rate should be determined by combining the comprehensive income of the taxpayer and the burden of the population.

Year-end bonus assessment or tax avoidance

The previous policy of adjusting the tax method for the year-end bonus to 12 months' assessment is not feasible under the current tax collection and management system.

Although the year-end bonus is the crystallization of the hard work of the taxpayers for a year, the collection of 12 months is reasonable. However, this precedent is difficult to guarantee that enterprises will not distribute the bonus of other non year-end bonuses in the form of year-end awards for tax avoidance, so that the progressive tax rate will be reduced a lot. Tax avoidance will be quite obvious, and the personal income tax revenue will be reduced accordingly.

It is still feasible to collect the real year-end bonus for 12 months. However, a supplementary document should be issued to strictly define the "year-end bonus" so as to prevent enterprises from spamming year-end awards.

Settle accounts

The current year-end bonus is much less than taxation.

Xiao Li's annual bonus is 18000 yuan, and the monthly salary is 3500 yuan.

Xiao Wang's annual bonus is 19000 yuan, and the monthly salary is 3500 yuan.

According to the existing old method of tax, Xiao Wang has less than 255 yuan after Xiaoli tax.

petty thief

18000 yuan 12=1500 yuan

The corresponding tax rates and quick deductions are 3% and 0 respectively.

The amount of tax payable is =18000 * 3%-0=540 yuan.

17460 yuan after tax

Xiao Wang

19000 yuan 12=1583 yuan

The corresponding tax rates and quick deductions are 10% and 105 respectively.

The amount of tax payable is =19000 * 10%-105=1795 yuan.

17205 yuan after tax

According to the "network pmission" new method of tax, Xiao Wang has more than 900 yuan after Xiaoli tax.

petty thief

18000 yuan 12=1500 yuan

The corresponding tax rates and quick deductions are 3% and 0 respectively.

The monthly tax payable is =1500 * 3%-0=45 yuan.

The annual tax payable is =45 * 12=540 yuan.

17460 yuan after tax

Xiao Wang

19000 yuan 12=1583 yuan

The corresponding tax rates and quick deductions are 10% and 105 respectively.

The amount of tax payable is =1583 * 10%-105=53.3 yuan.

The annual tax payable is =53.3 * 12=640 yuan.

18360 yuan after tax