China News Service, March 1 (China News Financial Reporter Li Jinlei) Starting from March 1, the 2023 personal tax settlement will officially begin.

Some taxpayers can apply for a tax refund, while others need to pay back taxes.

Personal tax settlement for 2023 begins

  The processing time for individual tax settlement in 2023 is from March 1 to June 30, 2024.

In short, it is to "check for omissions and make up for omissions, summarize income and expenditure, calculate accounts on an annual basis, and refund excess and make up for any excess" on the basis of the usual prepaid taxes.

  It is worth noting that if taxpayers need to handle annual settlement between March 1 and March 20, they can log in to the mobile personal income tax from 6 a.m. to 22 p.m. every day from February 21 to March 20. APP to make a reservation.

  The personal tax APP shows that as of February 29, appointments from March 1 to March 3 have been fully booked.

  If you're not in a hurry, there's no need to rush in and get everything done in the first few days.

From March 21st to June 30th, taxpayers do not need to make an appointment and can apply at any time.

  Screenshot of personal tax APP.

Who needs to make an accounting?

  Generally speaking, as long as the taxpayer's usual prepaid tax amount is inconsistent with the annual tax payable, annual settlement is required.

According to relevant regulations such as the Personal Income Tax Law and its Implementation Regulations, the situations that require annual settlement are divided into the following categories:

  The first category is taxpayers whose prepaid tax is higher than the tax payable and who need to apply for a tax refund.

It is the right of taxpayers to apply for tax refund in accordance with the law.

As long as the taxpayer's prepaid tax amount is greater than the tax payable in the tax year, the taxpayer can apply for annual final tax refund in accordance with the law.

  The second category is taxpayers whose prepaid tax amount is less than the tax payable and who must make up the tax and the amount of the tax payment exceeds 400 yuan.

  The third category is taxpayers who have under-declared or failed to declare comprehensive income in 2023 due to errors in the applicable income items or the withholding agent's failure to perform the withholding obligations in accordance with the law. They should handle the final settlement in accordance with the law and the facts.

  Amount of tax refundable or payable = [(comprehensive income amount - 60,000 yuan - special deductions such as "three insurances and one fund" - special additional deductions such as children's education - other deductions determined in accordance with the law - qualified public welfare and charity donations) × applicable Tax rate - quick calculation deduction] - prepaid tax

  RMB information map.

Photo by China News Network reporter Li Jinlei

What pre-tax deductions are available?

  For the following pre-tax deductions that will occur in 2023, taxpayers can report or make supplementary deductions during the settlement period:

  (1) Deduct 60,000 yuan in expenses, as well as special deductions for eligible basic pension insurance, basic medical insurance, unemployment insurance and other social insurance premiums and housing provident funds;

  (2) Special additional deductions for qualified infant care under 3 years old, children’s education, continuing education, serious illness medical treatment, housing loan interest or housing rent, and supporting the elderly;

  (3) Other deductions for eligible enterprise annuities and occupational annuities, commercial health insurance, personal pensions, etc.;

  (4) Qualified charity donations.

  Taxpayers who jointly file with their spouses for special additional deductions such as care for infants under 3 years old, children's education, medical treatment for serious illnesses, housing loan interest, and housing rent, or jointly file with brothers and sisters for special additional deductions for supporting the elderly, need to communicate with other filers. Fill in the deduction amount and avoid reporting special additional deductions exceeding the prescribed amount or proportion.

What should I pay attention to?

  According to the "Announcement on the Continuation of the Personal Income Tax Policy on Annual One-time Bonus" issued by the Ministry of Finance and the State Administration of Taxation, the policy that the annual one-time bonus may not be incorporated into the comprehensive income of the year and the implementation of separate monthly tax calculations has been extended to the end of 2027.

  Therefore, Sino-Singapore Finance reminds you that when handling individual tax calculations, you need to choose between year-end bonuses being taxed separately or fully integrated into comprehensive income tax calculations.

  Different tax calculation methods will affect the tax amount. You can calculate them separately through the personal tax APP and choose a more cost-effective tax calculation method.

  In addition, back taxes must be paid.

Taxpayers who need to pay tax in the final settlement fail to declare the tax or pay the tax in full after the final settlement period. Once discovered, the tax authorities will order corrections within a time limit according to law and deliver relevant tax documents to the taxpayer. For taxpayers who have signed the " If the "Confirmation of Electronic Delivery of Tax Documents" has been signed, the documents will be delivered electronically through channels such as individual tax APPs and websites; if the "Confirmation of Electronic Delivery of Tax Documents" has not been signed, the documents will be delivered by other means.

At the same time, the tax authorities will charge late payment fees in accordance with the law and mark them in their personal income tax "tax records".

  Therefore, taxpayers must handle individual tax returns in accordance with the law to avoid affecting their tax credit.