Chinanews.com, July 29. According to the website of the State Administration of Taxation, the State Administration of Taxation recently issued an announcement on improving and adjusting the methods for withholding and prepayment of certain taxpayers' personal income tax (hereinafter referred to as the announcement), which aims to further support stable employment and guarantee Employment, to reduce the tax burden of new recruits during the withholding and prepayment stage of personal income tax.
The announcement will take effect on July 1, 2020.
Data map: Taxation hall. Photo by Liu Wenxi
According to the announcement, for a resident individual who obtains income from wages and salaries for the first time in a tax year, the withholding agent can calculate the cumulative deduction based on 5000 yuan/month multiplied by the taxpayer’s number of months as of the current month when withholding and prepaying personal income tax. cost.
The announcement pointed out that if a student receiving a full-time degree education obtains labor remuneration for internship, the withholding agent may withhold and prepay personal income tax in accordance with 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.
In addition, taxpayers who meet the requirements of the announcement and can withhold and prepay personal income tax in accordance with the above clauses shall promptly declare to the withholding agent and truthfully provide relevant supporting materials or undertakings, and verify the authenticity and accuracy of the relevant materials and undertakings. Responsible for sex and integrity. Relevant information or letter of commitment, taxpayers and withholding agents shall keep for future reference.
The resident individual who obtains salary and salary income for the first time as mentioned in the announcement refers to an individual who has not obtained salary or salary income or has not withheld and prepaid continuous labor compensation according to the cumulative withholding method from the first month of the tax year to the time of new employment. Individual residents of income tax.
Attachment: Interpretation of the "Announcement of the State Administration of Taxation on Improving and Adjusting Some Taxpayers' Individual Income Tax Withholding and Prepayment Methods"
In order to better implement the spirit and requirements of the “six guarantees” and “six stability” of the Party Central Committee and the State Council, and to further reduce the tax burden of graduate students and other interns for the first time in the year and intern students during the withholding and prepayment stage, the State Administration of Taxation issued "Announcement on Improving and Adjusting Some Taxpayers' Individual Income Tax Withholding and Prepayment Methods" (hereinafter referred to as "Announcement").
1. What improvements and adjustments have been made to the withholding and prepayment methods for wages and salaries obtained by resident individuals for the first time that year?
For a resident individual who obtains income from wages and salaries for the first time in a tax year, the withholding agent can deduct the accumulated deductions calculated from the beginning of the year (5000 yuan/month) when withholding personal income tax on wages and salary income in advance. For example, when Xiao Li, a college student, enters a company after graduating in July 2020, when the company pays July wages and calculates the personal income tax that should be withheld in the current period, he can deduct 35,000 yuan (7 months × 5,000 yuan/month) .
2. Who are the resident individuals who have received wages and salaries for the first time as mentioned in this announcement?
The resident individuals who have received wages and salary income for the first time as mentioned in the "Announcement" refer 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. For example, the taxpayer Xiao Zhao has not found a job from January to August 2020, has not received wages or salary income, only has a labor remuneration of 8,000 yuan, and applies a 20% withholding rate for a single income. Prepaid taxes, found a new job at the beginning of September and began to receive salary, then the newly recruited unit can deduct 45,000 accumulated deduction expenses calculated since the beginning of the year when calculating and withholding the personal income tax of September wages and salaries for Xiao Zhao Yuan (9 months×5000 Yuan/month).
3. What improvements and adjustments have been made to the withholding and prepayment methods for students who obtain labor remuneration through internship?
If a student receiving full-time academic education obtains labor remuneration due to internship, when the withholding agent withholds and prepays personal income tax, he may follow the announcement of the State Administration of Taxation on the issuance of the “Administrative Measures for the Withholding of Individual Income Tax (Trial)” 》(No. 61 of 2018) to calculate and withhold the prepaid tax according to the cumulative withholding method. According to the relevant provisions of the Personal Income Tax Law and its implementation regulations, the specific calculation formula for the cumulative withholding method for withholding and prepaying personal income tax is:
Withholding and prepaid tax for the current period = (cumulative income-cumulative deductions) × withholding rate-quick calculation deductions-cumulative tax deductions-cumulative withholding prepaid taxes
Among them, the cumulative deduction fee is calculated by multiplying 5000 yuan/month by the number of months of internship from the month when the taxpayer starts the internship in the unit to this month.
The withholding rate and quick deduction in the above formula shall be implemented in accordance with the "Individual Income Tax Withholding Rate Table 1" attached to Announcement No. 61 of 2018.
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.
4. How can taxpayers apply the above improved and adjusted methods of withholding and prepayment of personal income tax?
Taxpayers can judge whether they meet the conditions specified in this announcement based on their own circumstances. Those who meet the conditions and withhold the prepaid tax in accordance with the methods prescribed in this announcement shall promptly declare to the withholding agent and truthfully provide relevant supporting materials or letter of commitment. For example, new graduates who graduated from the job can show supporting materials such as graduation certificate or dispatch certificate to the unit; interns obtain the labor remuneration paid by the intern unit, if the tax withholding method is adopted, they can show the student ID to the unit, etc. Supporting materials; taxpayers who have received wages and salary income for the first time in other years, if there is no other supporting materials, can provide a letter of commitment.
After the withholding agent receives the relevant supporting materials or the letter of commitment, it can withhold and prepay the individual income tax for the taxpayer in accordance with the improved and adjusted withholding and prepayment method.
At the same time, the taxpayer shall be responsible for the authenticity, accuracy and completeness of the supporting materials and the letter of commitment provided to the withholding agent. The taxpayer and withholding agent shall keep the original or photocopy of the relevant supporting information and the letter of commitment for future reference.
5. What is the implementation time of the announcement?
The "Announcement" will come into effect on July 1, 2020. Taxpayers who are employed or internship before July 1, 2020, if they have paid more personal income tax in advance, can still apply for a tax refund during the settlement of comprehensive income in the following year.