Author: Chen Yikan

  On March 1, the 2023 personal income tax final settlement was officially launched, and many netizens once again posted their final settlement bills.

  Judging from a small survey released by some organizations, nearly half of the netizens currently have tax refunds, and nearly 40% of netizens neither refund nor pay taxes. The remaining netizens said they want to pay taxes.

  Judging from social media, there are many netizens posting tax refund bills, with tax refund amounts ranging from tens, hundreds, thousands or even tens of thousands of yuan.

Netizens revealed that the amount of back taxes was hundreds, thousands or even tens of thousands of yuan.

  According to previous research by the China Institute of International Taxation Research, nearly half of those who completed individual tax settlements in 2019 and 2020 enjoyed tax refunds, with the average tax refund amount in the two years being approximately 581 yuan.

Therefore, for most people, there is a high probability that they will receive a tax refund.

Since the amount of tax payment within 400 yuan can be exempted and no back-payment is required, the number of people who do not want to refund or pay accounts for more than 40% of the number of people who participated in the final settlement and declaration, and the number of people who really need to pay the tax is about 3%.

  Therefore, for taxpayers who need to handle individual tax settlement and settlement, the probability of obtaining a tax refund or neither a tax refund nor a tax payment is extremely high.

  Last year, the State Council increased the monthly standards for three special additional deductions for infant care, children's education, and elderly care by 1,000 yuan, further reducing the burden of family support.

This will also allow more people to enjoy this tax refund red envelope during this year's personal tax final settlement.

According to data from the State Administration of Taxation, the policy of increasing the standard for special additional deductions for personal income tax has resulted in a new tax reduction of 39.18 billion yuan.

  Therefore, for individuals who were able to enjoy the above three additional deductions but did not file a declaration last year, they can make a supplementary declaration during the final settlement to fully enjoy the national tax benefits.

  Some netizens discovered during their declaration that they were faced with two major options for calculating tax on annual one-time bonuses when handling individual tax returns: all being incorporated into comprehensive income tax calculation and separate tax calculation.

Choosing one of these methods will require you to pay thousands of dollars in taxes, while the other method will require no taxes.

  There are currently two methods for calculating individual tax on year-end bonuses. One is to calculate tax separately, that is, divide the annual one-time bonus income by 12 months, and determine the applicable tax rate based on the monthly converted comprehensive income tax rate table. Quickly calculate deductions and calculate taxes individually.

And all the bonuses are incorporated into the comprehensive income tax calculation, which means that the bonus is included in the comprehensive income income, and the tax is calculated according to the excess progressive tax rate of comprehensive income.

  Separate tax calculation is actually a preferential policy. Last year, China extended it to the end of 2027.

Therefore, for most people, if they choose the separate tax calculation method, they can pay less personal tax on year-end bonuses.

But for those who have a relatively small salary throughout the year and a relatively large year-end bonus, they may choose to incorporate the year-end bonus into the comprehensive income tax calculation method to save taxes.

  Shi Zhengwen, a professor at China University of Political Science and Law, suggests that one of the simplest ways to identify which tax calculation method for bonuses is most beneficial to you is to first choose a certain tax calculation method in the personal tax APP and see the final tax payment. Amount, then do not confirm, go back and choose another tax calculation method. Compare the two methods and choose whichever tax amount is smaller.

  For taxpayers who are going through individual tax settlement, they must not listen to the so-called "tax refund secrets" and obtain tax refunds by concealing income and falsely reporting individual tax deductions.

This is an illegal act, which may range from the tax authorities directly refusing to refund the tax or making subsequent rectifications and making up for the tax in accordance with the law. Reasons that are not subjective and intentional are generally exempted from punishment in accordance with the principle of "no penalty for the first offense".

  However, taxpayers who make false declarations for individual income tax settlement and still refuse to make corrections after being reminded by the tax bureau may be put on file for inspection by the tax bureau, and be required to pay taxes, add late fees and fines, and be included in the list of key personnel for tax supervision. The review of declarations for the next three tax years will be strengthened.

In the past few years, tax bureaus at all levels have exposed many such illegal cases, and some even exposed their real names.

  In fact, the tax repayment is because individuals actually paid less personal tax when they prepaid personal tax last year. Therefore, they need to make up for the previously underpaid personal tax after the final settlement.

In addition, according to the current preferential tax policies, the amount of back tax up to 400 yuan will be directly exempted and no back payment is required.

The tax refund means that the tax bureau collected more personal tax when prepaying personal tax, so it will be refunded after the final settlement.

  With the start of individual tax final settlement, some local Internet police also reminded taxpayers to beware of fraudsters who use individual tax final settlement to commit fraud.

  For example, when Ms. Zhang (pseudonym) was working at the company, she suddenly received an email with the title "2023 Personal Income Tax Refund Declaration Notice", because Ms. Zhang usually only receives internal emails from the company, and the company used to file personal income tax returns. The notice was sent by email. Ms. Zhang took it for granted that it was from the Human Resources Department. She then scanned the QR code in the email and filled in her bank card number, ID number, and other information on the page that jumped out. After waiting for her mobile phone number, she entered the received verification code into the platform. Finally, Ms. Zhang received a deduction message of 29,997 yuan. Ms. Zhang suddenly felt like a dream. She immediately called the police after discovering that she had been deceived.

  The tax department reminds taxpayers that when issuing individual tax settlement reminders to taxpayers, they will not include website links and specific tax amounts that should be refunded or paid back. Taxpayers must pay attention to screening to avoid being deceived.

  The personal tax settlement and settlement period in 2023 is from March 1 to June 30 this year. To improve tax handling efficiency and reporting experience and avoid the rush to handle the initial settlement, personal tax settlement will be handled from March 1 to March 20. You need to make an appointment on the personal tax APP (developed by the State Administration of Taxation). From March 21 to June 30, taxpayers do not need to make an appointment and can apply at any time.

  Data from the Ministry of Finance show that the national personal tax revenue in 2023 will be 1.4775 billion yuan, a year-on-year decrease of 1%.

This is mainly due to the impact of policy-based income reductions caused by the implementation of policies to increase special additional deduction standards for infant care, children's education, and elderly care, as well as the reduction in income from the transfer of corporate restricted stock equity, etc.