China's individual income tax is a tax calculated and levied according to personal income. The individual income tax threshold refers to the calculation of individual income tax only after an individual's income exceeds a certain amount.
According to the latest policy regulations, China's individual income tax threshold is 5,000 yuan per month, that is, if the monthly income of an individual is less than 5,000 yuan, there is no need to pay individual income tax.
The calculation of the tax payable for individual income tax is as follows:
1.Calculate Gross Revenue:It includes income from wages, salaries, remuneration for labor services, author's remuneration, royalties, property leases, property transfers, interest, dividends, bonuses, incidental income, and other income. Among them, the total amount of wages and salaries, labor remuneration, and pre-tax five insurances and one housing fund is the income.
2.Deduction of various special deductions:Including special deductions for children's education, continuing education, housing rent, and supporting the elderly. According to the calculation of different special deduction standards, the result after deduction is the taxable income.
3.The individual income tax payable is calculated according to different tax rates according to the taxable income.
For example, a person's monthly salary income is 7,000 yuan, and the five insurances and one housing fund are 6,000 yuan after deduction, and there is no other income and deductions:
1.The person's monthly income is 6,000 yuan, and his taxable income is 6,000 yuan.
2.According to the personal income tax threshold of 5,000 yuan, the taxable income of the person is 1,000 yuan.
3.1,000 yuan is calculated at a tax rate of 3%, and the person should pay 30 yuan of personal income tax.
Therefore, the person should pay a personal income tax of $30 per month.
It should be noted that the income after the deduction of five insurances and one housing fund, that is, the income calculated before tax, is not the basis for the calculation of individual income tax. Individual income tax is calculated on the basis of taxable income, that is, the balance of total income minus various special deductions. Personal income tax