The calculation method of air ticket tax credit is formulated in China in accordance with the Individual Income Tax Law of the People's Republic of China and related tax policies, aiming to encourage people to travel by air. Here's a detailed explanation of how to calculate the tax credit for air tickets:
1. What is a ticket discount?
A ticket discount is a premium offered by an airline in order to attract more passengers to buy its flights. Usually, the discounts are divided into different tiers, such as full price, half price, etc.
2. How to determine the amount of tax credit?
The amount of the tax credit is determined based on the difference between the actual ** of the ticket and the corresponding discount. Specifically, if the full price of a ticket is x, then the tax credit amount for that ticket is (x - x) *002%。of which, 002% is the state-mandated tax rate (currently 2%).
3. How to calculate taxable income?
Taxable income refers to the total income received by the taxpayer from the time the income is obtained to the time when the expenses are paid. For the tax credit, the formula for calculating the taxable income is as follows:
Taxable income = actual fare 1 + VAT rate) - discount.
4. How to pay individual income tax?
When an individual has purchased a ticket and used the tax credit method, he or she needs to declare individual income tax to the tax authorities in accordance with the regulations. The specific tax payment process includes filling out the individual income tax return, providing relevant vouchers, paying taxes and other steps.
5. Under what circumstances can I enjoy tax exemption?
According to the relevant regulations, the following circumstances can be recognized as tax exemption:
1.Tickets obtained outside of China;
2.Take domestic flights for business trips or visiting relatives and friends;
3.Round-trip tickets for international flights;
4.Special groups such as persons with disabilities, elderly people living alone, and orphans who meet specific conditions.
6. How to avoid unnecessary tax burdens?
In order to avoid unnecessary tax burdens, it is recommended to purchase tickets through official channels when purchasing tickets, such as booking through the airline's official** or authorized** agencies. In addition, care should be taken to keep the relevant bills and supporting materials for future tax declarations.