Introduction: The annual compilation of comprehensive personal income tax for 2023 has begun.
In order to make taxpayers' calculations convenient, fast and accurate, we have summarized thirteen typical problems that are prone to errors in annual calculations and explained them in the form of cases to help everyone complete the calculations smoothly.
1. For convenience, keep personal information in mind
[Case 1] Remember the password of the Convenient APP when handling settlement
After the personal tax settlement began, Xiao Zhao saw that other colleagues had received tax refunds after completing the settlement, and he was a little hopeful.
When he opened the personal tax mobile APP, he ran into trouble and kept muttering in his mind: "What is my password?" It turned out that he had completely forgotten his password since he had not logged into the personal tax mobile APP for a year.
Xiao Zhao quickly looked at the "Retrieve Password" in the lower right corner. He retrieved his password with a few simple operations and successfully completed the calculation.
Warm reminder:
The personal tax settlement period is from March 1st to June 30th every year. It is recommended to remember the personal tax mobile APP password. You can also use the biometric function (fingerprint, face, etc.) to help record the password.
If you forget your password, don’t worry. Click [Retrieve Password] on the IIT mobile APP login page to reset your password.
Generally speaking, you only need to fill in the identity information and choose to verify through the bound mobile phone number or through personal bank card verification. After the verification is passed, the setting of the new password is completed.
If you still cannot retrieve your password through the above methods, you can bring your valid ID to the nearby tax service office to reset your password.
[Case 2] If you want to obtain a tax refund in a timely and accurate manner, you must have an accurate card number
According to the individual tax settlement processing time notified by the unit's financial staff, Xiaoqian and his colleagues handled the annual settlement and could apply for a tax refund of 300 yuan.
Xiaoqian happily submitted his tax refund application, but because he was busy with work, he stopped paying attention and did not promptly check the "bank card verification failed" prompt message sent by the tax authorities through text messages and personal tax mobile APP site messages. The result was other Colleagues all received tax refunds, but his own tax refund was unsuccessful.
Warm reminder:
Incorrect or invalid bank card account information submitted by taxpayers is one of the important reasons for tax refund failure.
The bank card used for tax refund processing should be a bank card opened in China. We recommend taxpayers to fill in a Type I account (Type I account refers to a full-function bank settlement account that can handle deposits and withdrawals, transfers, consumption and payment, A bank card with cash withdrawal and other functions; if you fill in a Type II account and other accounts, there may be a risk that the tax refund amount will be larger than the daily transaction limit of the account and the tax refund cannot be completed), and keep the bank card status normal.
It should be noted that the tax authorities will not ask taxpayers to provide bank account number and other relevant information in text messages or unofficial software. If you have any questions, you can call the 12366 tax service hotline, or go to the [Personal Center] - [Me] of the Personal Income Tax APP. To consult] Leave a message for consultation and solution.
[Case 3] Don’t click on unfamiliar links and be deceived.
Recently, the taxpayer Xiao Sun received an online email claiming that the State Administration of Taxation had issued a personal tax settlement and settlement notice, "You can scan the QR code to get a tax refund based on 70% of the total tax paid in the past three years." Click the link to jump I came to a "high imitation" website of the State Administration of Taxation.
Xiao Sun wanted to click on the application quickly, but then he thought about why he still refused to do the annual accounting since he had already done it last year, so he called the 12366 tax service hotline.
The tax officer gave Xiao Sun a detailed explanation, telling him that the email might involve fraud, and that he would later ask you to provide your bank card, mobile phone number, verification code and other information. Xiao Sun was so frightened that he broke into a cold sweat and quickly deleted the email.
Warm reminder:
Taxpayers can handle it themselves through the personal tax mobile APP, the Natural Person Electronic Taxation Bureau website (https://etax.chinatax.gov.cn) or go to the tax service office. They can also go through the employer or entrust other institutions. Or individuals can handle it on their behalf. The tax authorities will not authorize other so-called "electronic" channels. Taxpayers are advised to pay attention to screening and do not be influenced by "being able to get a large tax refund" to click on unknown links to avoid the leakage of their own information and property losses.
2. If you don’t understand, let’s classify it and interpret it.
[Case 4] It is possible to combine tax payments and refunds for multiple incomes
The taxpayer Xiao Li's annual salary was 200,000 yuan, and he received 20,000 yuan in royalties from publishing articles in magazines. After deducting eligible deductions and various deductions, he found that he needed to pay 560 yuan in back taxes when handling the annual calculation of comprehensive income.
Xiao Li feels that whether it is salary or author remuneration, his employer and magazine have already paid taxes to him, so there is no need to make up another sum of money. Moreover, most of his friends around him receive tax refunds, so why do he have to pay taxes?
As a result, the annual accounts have not been done for a long time.
After discovering this, the tax authorities explained the tax policy to him and urged him to file a tax repayment declaration in a timely manner.
Warm reminder:
After the implementation of the new Personal Income Tax Law in 2019, China began to implement a comprehensive and classified personal income tax system.
The four comprehensive incomes obtained by individual residents, including wages and salaries, labor remuneration, author remuneration and royalties, need to be "checked for omissions, summarized income and expenditure, and calculated on an annual basis, and refund any excess and make up for any excess" on the basis of the usual prepaid taxes. , this system makes people with the same income level have the same tax burden in a tax year, promotes fair distribution, and is an internationally accepted practice.
Generally speaking, in addition to wages and salaries, taxpayers also receive labor remuneration, author remuneration, and royalties. If the sum of the various incomes results in the applicable tax rate being higher than the tax rate at the time of prepayment, back taxes will occur.
The individual tax rate for Xiao Li’s prepaid wages and salaries is subject to a 25% tax rate, and the individual tax rate for prepaid author remuneration income is applicable to a 20% tax rate. After combined calculation, the author remuneration income is also subject to a 25% tax rate, so he needs to pay 560 yuan in tax.
It is normal for both supplements and refunds to be made during the annual accounting, and everyone should treat it with a normal mind.
[Case 5] Don’t panic if you have unfamiliar income, verify it first and then appeal.
The taxpayer, Professor Zhou, was invited to attend a seminar and give a speech at a certain university. When doing the calculations the following year, he discovered that there was a tax payment record from Association A for labor remuneration.
Professor Zhou recalled that he had never participated in the activities of Association A, so he filed a natural person objection appeal on the personal tax mobile APP regarding the labor remuneration.
After verification by the tax authorities, the seminar that Professor Zhou attended at the university was actually hosted by the association, and the labor remuneration for his speech was also paid by the association and his personal tax was withheld.
Professor Zhou filed an erroneous appeal for "being paid" regarding the labor remuneration because he was not clear about the reason.
Warm reminder:
When taxpayers check their income tax records through the personal tax mobile APP, if they have questions about a certain amount of income, they can first contact the paying unit to verify the tax status of the income.
If it is an error in the declaration by the paying unit, the paying unit can handle the correction declaration for the taxpayer; if both parties do have a dispute about the income, the taxpayer can appeal the income information.
We recommend that taxpayers carefully read the appeal instructions and be responsible for the authenticity, accuracy and completeness of the appeal information. At the same time, please keep relevant supporting materials for subsequent contact and verification by the tax authorities.
[Case 6] Tax refund application is not a once and for all matter, but it is an obligation to correct the information
When Xiao Wu went through the final accounting declaration, he added a new donation deduction of 10,000 yuan based on last year's donations, but the name of the recipient unit and the donation voucher number were not clearly filled in.
The tax authorities discovered this situation during the tax refund review and contacted Xiao Wu many times to remind him to enter relevant information in a timely manner and upload the donation voucher.
However, Xiao Wu failed to fill in the donation information and vouchers in time due to various reasons.
In the end, the tax authorities made a decision not to refund the tax.
Warm reminder:
During the annual tax refund review, the tax authorities will contact the taxpayer to supplement the form or submit relevant supporting materials for items that are unclear or missing in the taxpayer's report.
This is a measure to implement the collection and management service system of "you can enjoy it upon declaration, and the information is retained for future reference", and it is also an internationally accepted practice.
We recommend that taxpayers actively cooperate and submit relevant information as soon as possible after receiving reminders from tax authorities in order to obtain tax refunds in a timely manner and enjoy high-quality services.
3. Fill in the form in good faith. False reporting will be investigated.
[Case 7] Only official notifications can be trusted. "Tax refund tips" are unreliable
Xiao Zheng, an employee of a certain company, is a mobile phone addict and often browses social media such as Douyin, official accounts and Xiaohongshu.
During the annual settlement period, Xiao Zheng accidentally saw a short video in a WeChat group. The video said that when individuals go through the annual settlement of personal income taxes, they can add some new deductions and get a tax refund.
Seeing this "Tax Refund Tip", Xiao Zheng felt like he had found a treasure, and he followed the same method regardless of whether the information was true or false.
Unexpectedly, not long after filling out the form, he received a message from the tax authorities prompting him to declare truthfully. Xiao Zheng suddenly realized this and quickly canceled the tax refund application and corrected the declaration. He sighed: "The right way is to be down-to-earth and declare honestly."
Warm reminder:
Since the implementation of the annual personal income tax settlement system, some criminals have targeted taxpayers’ eagerness and willingness to obtain tax refunds and launched so-called “tax refund tips” to attract clicks and traffic, and gain eyeballs and attention.
The tax authorities solemnly remind you not to listen to all kinds of tax-related rumors on the Internet, and you should truthfully report your income and deductions in accordance with the law.
[Case 8] “Treatment for serious illnesses” is definitely not a “way to make money”
Xiao Wang spent a lot of money on hospitalization last year, and the financial department of his unit reminded him that he can enjoy the special additional deduction policy for serious illness medical treatment during the annual income tax return.
Xiao Wang found the eligible medical expenses totaling 35,000 yuan on the national medical insurance platform APP, filled in the reports truthfully, and received a tax refund in a timely manner.
He and his colleagues in the unit widely publicized the country's good policies, but he didn't expect someone to have a wrong idea.
The other three people in the office followed suit. Even though they had no medical expenses, they also reported a special additional deduction of 35,000 yuan for serious illness medical expenses and submitted a tax refund application.
However, these people did not expect to receive a tax refund. Instead, they received a message from the tax authorities asking them to provide supporting documents, and they may also be recorded as having bad tax credit.
Warm reminder:
It is the legal obligation of every taxpayer to handle individual tax returns in accordance with the law. Believing in so-called tax refund tips or false rumors will not only affect your tax credit due to false reporting, but may also leak personal privacy information to Internet fraudsters.
When taxpayers are handling settlements, they should carefully check their income, deductions, taxes withheld and other information through the personal tax mobile APP, and handle settlements in good faith in accordance with the law.
For those who falsely report income or deduction items, tamper with certification materials and other egregious circumstances, the tax department will severely deal with them in accordance with the law and recover taxes and late fees; for those who refuse to make corrections, they will file a case for investigation in accordance with laws and regulations.
[Case 9] The identity of the child must be verified with true information to ensure that there is no hiding
Xiao Feng and Xiao Chen are a newlywed couple who have not raised children yet.
However, during the calculation, in order to pay less tax, Xiao Feng filled in the identity information of his colleagues’ children and enjoyed special additional deductions for their children’s education.
The tax authorities found that there were doubts in the special additional deduction information they filled in during the annual settlement, and sent a text message asking them to correct the declaration information or provide supporting materials.
Taking a chance, Xiao Feng ignored the reminders from the tax authorities.
The tax authorities contacted him again by phone and explained the policies and regulations again, clearly informing him of existing problems and legal responsibilities.
When Xiao Feng failed to correct the information or provide supporting documents, the tax authorities suspended his enjoyment of special additional deductions in accordance with the law.
Warm reminder:
A small number of taxpayers made false declarations for special additional deductions in order to over-refund or under-pay taxes during the annual settlement.
In order to build a closed loop of personal income tax management, the tax department and other departments have established an information verification mechanism to use tax big data to analyze taxpayers' declarations; communicate with taxpayers about discovered tax-related risks, and guide taxpayers to correct errors and improve Comply, and those who refuse to make corrections will be dealt with by the tax authorities in accordance with laws and regulations.
[Case 10] The identity of the elderly must not be filled in blankly, and knowing the regulations is a prerequisite
Xiao Chu is 25 years old this year. When he was doing the annual accounting, he saw that his older colleagues around him had filled in the special additional deduction for supporting the elderly and could get a tax refund. He felt very itchy. However, his parents were not yet 60 years old and did not meet the requirements. .
Xiao Chu had an idea and took his grandmother's information as his mother's information and filled in the special additional deduction for supporting the elderly. He couldn't help but feel proud.
Within a few days, the tax authorities discovered anomalies during the tax refund review and asked Wang to submit supporting information.
Knowing that he was in the wrong, Wang quickly withdrew his tax refund application and corrected his annual financial statements with a guilty conscience.
Warm reminder:
There are certain reporting conditions for special additional deductions for supporting the elderly. The main requirement is that if the dependent is a parent, one parent must be over 60 years old.
Only if the taxpayer's parents and siblings have passed away and the taxpayer fulfills the support obligations of grandparents or grandmothers, the taxpayer can report special additional deductions for supporting the elderly.
For taxpayers who falsely report special additional deductions for supporting the elderly, the tax department will also use tax big data for analysis based on information verification with other departments; for tax-related risks discovered, communicate with taxpayers and guide taxpayers to correct their mistakes , improve compliance, and those who refuse to make corrections will be dealt with by the tax authorities in accordance with laws and regulations.
4. Don’t delay, there is a price for not doing the settlement.
[Case 11] Declaration of overseas income, do not hide it and leave it to chance
Xiao He was assigned by a domestic company to work in a foreign subsidiary for three years. Before the end of February every year, the company reported the information of the expatriates to the tax authorities.
During the annual accounting period, the company reminded Xiao He that he should declare personal income tax in China on his overseas income. However, he was lucky and thought that he had been posted abroad for a long time and was unlikely to be discovered, so he did not handle the accounting of overseas income.
During big data analysis and comparison, the tax authorities found that Xiao He had not declared hundreds of thousands of yuan in overseas income, and issued him a notice ordering him to make corrections within a time limit.
Xiao He paid back taxes and late fees. The employer learned that he failed to declare truthfully and criticized and educated him.
Warm reminder:
Resident individuals are required to declare and pay taxes on their overseas income. This is a basic system that has been adhered to since the implementation of the Personal Income Tax Law in 1980.
The newly revised Personal Income Tax Law in 2018 continues this provision, that is, resident individuals must pay personal income tax in China in accordance with the law on their income derived from my country and abroad.
[Case 12] Tax refund application should be handled in a timely manner if the time limit is exceeded and the rights and interests are damaged.
Taxpayer Xiao Lu received a number of labor remunerations in 2019, which resulted in his usual withholding tax rate being higher than the applicable tax rate for the 2019 annual settlement. According to the tax law, he can handle the annual settlement and obtain a tax refund.
But Xiao Lu was usually too busy with work. His employer reminded him many times to handle the accounting, but he didn't take it to heart.
In the second half of 2023, by chance, Xiao Lu opened the personal tax mobile APP, and remembered the prompts from the tax authorities. When he initiated the 2019 annual tax refund application, the system had prompted that the tax refund application exceeded the tax collection and administration law. The deadline was set, and Xiao Lu regretted it.
Warm reminder:
It is the taxpayer’s obligation to handle the financial statements truthfully in accordance with the law.
According to the provisions of the Tax Collection and Administration Law, taxpayers may request a refund of overpaid taxes from the tax authorities if they discover it within three years from the date of settlement and payment of taxes.
For taxpayers whose tax refunds are finalized, it is recommended to submit tax refund applications in a timely manner after confirming income and deductions, and pay attention to the tax refund review status of the tax authorities to avoid missing out on tax refund dividends.
Starting from July 1, 2024, the tax authorities will no longer accept tax refund applications from taxpayers for the 2020 annual settlement.
Taxpayers who meet the tax refund conditions are requested to handle the final settlement and apply for tax refund in a timely manner to avoid affecting their legitimate rights and interests.
[Case 13] Final tax repayment is an obligation and should be handled, and there will be penalties if not done.
The taxpayer Xiao Zhang worked in multiple units in 2022 and also received a large sum of royalties. As a result, his usual tax rate withheld is lower than the applicable tax rate for the 2022 annual settlement. In accordance with the provisions of the tax law, he should handle the annual settlement and make additional payments. taxes.
During the settlement, Xiao Zhang opened the personal tax mobile APP and took a look and found that he had to pay a lot of taxes. He felt that the tax authorities might not be able to find him, so he delayed the settlement and payment of taxes.
In August 2023, after multiple invalid reminders, the tax authorities ordered him to make corrections within a time limit in accordance with the law.
After receiving the notice, Xiao Zhang said: If I had known this, I might as well have done it earlier. The tax was not paid less, and there was also a late payment fee. It was a big loss.
Warm reminder:
It is the taxpayer's obligation to handle the financial statements truthfully in accordance with the law.
For tax-related problems such as unfinished settlement that should be handled, the tax authorities will issue reminders, urge rectification, and interview and warn them, and send tax documents to them electronically, in writing, etc., to remind and urge taxpayers to rectify. For taxpayers who make rectifications or incomplete rectifications, the tax authorities will file a case for inspection in accordance with the law, impose fines on top of late payment fees, and include them in the list of key personnel for tax supervision, and strengthen review of their declarations for the next three tax years.
(State Administration of Taxation WeChat official account)