The calculation method of regular fixed individual income tax is a tax collection method for individual industrial and commercial households, private enterprises and other individuals engaged in production and business activities, according to their annual income within a certain period of time (usually one year) on a monthly or quarterly basis. The following is a detailed description of the calculation method of regular fixed amount personal income tax.
1. The basis for calculating individual income tax
Individual income tax is calculated on the basis of taxable income obtained by taxpayers. According to the Individual Income Tax Law of the People's Republic of China, individual income tax is levied on income obtained by individuals within the territory of ChinaThose who have no domicile and do not reside in China or do not reside in China for more than 183 consecutive days in a tax year shall also pay individual income tax. Therefore, the tax basis of individual income tax includes the following:
1.Income from wages and salaries: refers to the wages, salaries, bonuses, year-end salary increases, labor bonuses, allowances, subsidies and other income related to the position or employment obtained by an individual as a result of his or her position or employment.
2.Income from production and operation: refers to the income obtained by individual industrial and commercial households and other production and business activities, including income from the sale of goods, income from the provision of labor services, income from the transfer of property, etc.
3.Author's remuneration refers to the income obtained by individuals from the publication of their works in the form of books and newspapers.
4.Incidental income: refers to the income obtained by an individual from various incidental income, such as winning lotteries, lottery wins, and other daily activities.
2. The formula for calculating the regular fixed amount of individual income tax.
Regular fixed personal income tax is calculated using progressive tax rates, as follows:
1.The formula for calculating taxable income is as follows: taxable income = total income - tax threshold - quick deduction
Among them, the threshold refers to the amount of income after deducting expenses on a monthly or annual basis, which is generally 2,000 yuan;Quick deductions are calculated on a case-by-case basis, and the specific calculation method can refer to the relevant tax regulations. For example, if a person's annual income is $50,000, his tax threshold is $2,000, and the quick deduction can be determined based on the income bracket.
2.Formula for calculating fixed amount tax: fixed amount tax = taxable income Applicable tax rate
Among them, the applicable tax rate is determined according to the size of the taxable income, which is generally divided into two types: excess progressive tax rate and proportional tax rate. The excess progressive tax rate applies to high-income people, and the proportional tax rate applies to low-income people.