Increase knowledge in this article to understand how to declare individual income tax after obtainin

Mondo Social Updated on 2024-01-29

Commission refers to the remuneration given by business operators to intermediaries with legal business qualifications who provide services to them in market transactions. So how do resident individuals declare individual income tax after obtaining commission income?Let's find out!

(1) General commission income

1.Monthly withholding and prepayment

If a withholding agent pays commissions and other remuneration for labor services to an individual resident, it shall withhold and pay individual income tax on a per-time or monthly basis according to the income from remuneration for labor services. The income from labor remuneration is subject to Table 2 of the withholding rate of individual income tax.

Note: If the income from labor remuneration is a one-time income, the income shall be obtained as a one-time income;If it is a continuous income of the same project, the income obtained within one month shall be regarded as one time.

2.Annual comprehensive income reconciliation

The income from remuneration for labor services shall be the balance of the income after deducting 20% of the expenses as the amount of income, which shall be calculated in accordance with the law and incorporated into the annual comprehensive income to calculate the tax payable, and the excess tax shall be refunded and the deficiency shall be compensated.

(2) Personal insurance people, insurance marketers,**Commission income earned by the broker

If it is income from remuneration for labor services, the balance of the income excluding VAT after deducting 20% of the expenses is the amount of income, and the income amount is incorporated into the comprehensive income of the current year after deducting the cost of business development and additional taxes and fees, and the individual income tax is calculated and paid. Among them, the cost of business development is calculated according to 25% of the amount of income.

According to the notice of the Ministry of Finance and the State Administration of Taxation on the convergence of preferential policies after the revision of the individual income tax law (CS 2018 No. 164), the withholding unit shall calculate the withholding individual income tax according to the cumulative withholding method for the commission income obtained by insurance marketers and brokers.

According to the announcement of the State Administration of Taxation on further simplifying and optimizing the withholding and prepayment methods of individual income tax for some taxpayers (Announcement No. 19 of 2020 of the State Administration of Taxation), resident individuals who have withheld and prepaid individual income tax on wages and salaries from the same unit every month in the previous full tax year and whose annual wages and salaries do not exceed 60,000 yuan, the withholding agent is required to withhold and prepay the wages of the current year. In the case of individual income tax on salary income, the cumulative deduction expenses will be directly calculated and deducted according to the annual deduction of 60,000 yuan from January. For resident individuals who withhold and prepay individual income tax on labor remuneration in accordance with the cumulative withholding method, the withholding agent shall be subject to the above provisions.

Related Documents:

100 Assistance Programs: Administrative Measures for Individual Income Tax Withholding and Declaration (Trial) (Announcement No. 61 [2018] of the State Administration of Taxation) and Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Convergence of Relevant Preferential Policies after the Revision of the Individual Income Tax Law (CS 2018 No. 164).

Announcement of the State Administration of Taxation on Further Simplifying and Optimizing the Method of Individual Income Tax Withholding and Prepayment for Some Taxpayers (Announcement No. 19 [2020] of the State Administration of Taxation).

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Prepared: December 12, 2023.

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