Chinanews client, Beijing, July 29 (Reporter Li Jinlei) The individual tax policy has been newly adjusted. This time, new recruits and intern students will benefit from it.
what happened?
On July 29, the State Administration of Taxation issued the "Announcement on Improving and Adjusting the Methods of Withholding and Prepayment of Individual Income Tax for Some Taxpayers." For resident individuals who obtain wages and salaries for the first time in a tax year, the withholding agent will In the case of personal income tax, the accumulated deduction fee can be calculated by multiplying the taxpayer's current month by the number of months ending in the current month by 5000 yuan/month.
A tax data map. Photo by Chinanews reporter Li Jinlei
for example--
College student Xiao Li enters a company after graduation in July 2020. When the company pays July wages and calculates the current personal income tax that should be withheld and prepaid, he can deduct 35,000 yuan (7 months × 5,000 yuan/month).
what are the benefits?
Assuming that Xiao Li receives a salary of 10,000 yuan, and personally pays 2,000 yuan for the "three insurances and one housing fund", there is no special additional deduction. Before the adjustment, a monthly tax (10,000-5000-2000) × 3% = 90 yuan is required. After the adjustment, the fee can be reduced by 35,000 yuan, and there is no need to pay a tax in advance.
It should be noted that the “announcement” refers to resident individuals who have received wages and salary income for the first time, referring to resident individuals who have not received wages, salary income or continuous labor remuneration from the first month of the tax year to the time of new employment.
Taxpayers who have obtained wages and salaries before entering the new unit, or have withheld and prepaid personal income tax from continuous labor service remuneration according to the cumulative withholding method are not included. If the taxpayer has only accidentally obtained labor remuneration, author's remuneration, and royalties before new employment, it will not be affected, and the provisions of the announcement can still be applied.
Data map: Job seekers are looking for jobs at the venue. Photo by China News Agency reporter Wu Junjie
In addition, if the student receives labor remuneration through internship, the method of withholding and prepayment is also adjusted.
According to the announcement, if a student receiving full-time academic education obtains labor remuneration for internship, when the withholding agent withholds and prepays personal income tax, he can follow the "State Administration of Taxation on the release of "Individual Income Tax Withholding Declaration Management Measures (Trial)" "Announcement" (No. 61 of 2018) to calculate and withhold the withholding tax.
for example--
Student Xiao Zhang received 3,000 yuan for labor services from an internship in a company in July. When the withholding unit withholds and prepays the personal income tax from labor service remuneration, it may adopt the cumulative withholding method to withhold the prepaid tax.
If this method is adopted, Xiao Zhang will not need to pre-pay tax after deducting 5,000 yuan for his labor remuneration in July, which is 440 yuan less than before the adjustment of the pre-withholding pre-payment method. If Xiao Zhang has no other comprehensive income during the year, there is no need to apply for an annual tax refund.
A tax data map. Photo by China News Agency reporter Yin Liqin
According to the State Administration of Taxation, this is to further support stable employment and ensure employment, and to further reduce the tax burden of graduate students and other interns who are first employed in the middle of the year and intern students during the withholding and prepayment stage.
It can be seen that according to the New Deal, if you are a new college student or an intern, you may not need to pay a tax in advance, and your income will increase.
Of course, to enjoy this new policy, you need to declare to your unit and provide relevant supporting information or a letter of commitment truthfully.
New graduates who have graduated from a job can show supporting materials such as graduation certificates or dispatch certificates to the unit; interns who obtain labor remuneration paid by the intern unit, such as accumulative withholding method to withhold taxes, can show supporting evidence such as student cards to the unit Information: Taxpayers who have received wages and salary income for the first time in other years, if there is no other supporting information, can provide a letter of commitment. (Finish)