How to calculate the individual income tax withheld and prepaid for director fees?

Mondo Social Updated on 2024-01-28

According to the provisions of the Individual Income Tax Law, there are two types of calculation of director's fee income:First, as a director of the unit where you work, you need to calculate individual income tax according to "salary income" after merging with salary income;The second is to only serve as a director, and calculate individual income tax according to the income item of labor remuneration.

For public welfare donations, donations to public welfare charitable undertakings such as education, poverty alleviation and poverty relief through public welfare social organizations and state organs in China can be fully deducted before individual income tax.

In Wang's case, he had salary income, executive director's allowance and director's fee income for independent directors. According to the regulations, the salary income and executive director's allowance are calculated according to the "salary income", and the director's fee of independent directors is calculated according to the income item of labor remuneration.

First of all, we need to calculate Wang's salary income tax and independent director's fee income tax.

1.Calculation of income tax on wages and salaries:

Income from wages and salaries = salary income + executive director's allowance - special deduction - special additional deduction - public welfare donation.

Taxable income = income from wages and salaries.

Personal Income Tax = Taxable Income Withholding Rate - Quick Deduction.

2.Income tax calculation of directors' fees for independent directors:

Income from directors' fees = income from directors' fees.

Taxable income = income from director's fees 1 - 20%)

Personal Income Tax = Taxable Income Withholding Rate - Quick Deduction.

In this case, Wang's salary income tax and independent director's director fee income tax were calculated and added separately to obtain the total amount of individual income tax that Wang should withhold and pay in January 2019.

For example, let's say Wang's salary income is 20,000 yuan, the executive director's allowance is 10,000 yuan, and the director's fee income of independent directors is 30,000 yuan. His special deduction and special additional deduction pre-tax deduction amount is 8,000 yuan.

Calculation of income tax on wages and salaries:

Salary income = 20,000 + 10,000 = 30,000 yuan.

Taxable income = 30,000 - 8,000 - 3,000 = 19,000 yuan.

Personal income tax = 19,000 3% -0 = 570 yuan.

Income tax calculation of directors' fees for independent directors:

Income from director's fee = 30,000 yuan.

Taxable income = 30,000 1 - 20%) = 24,000 yuan.

Personal income tax = 24000 30% -2000 = 5200 yuan.

Wang's individual income tax should be withheld and paid in January 2019 = 570 + 5200 = 5770 yuan.

Therefore, according to this case, Wang's personal income tax should be withheld and paid in January 2019 as 5,770 yuan. Personal income tax

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