I heard that the year-end bonus can be taxed separately or together with comprehensive income, so which is more cost-effective? Can the year-end bonus issued in January 2024 be counted in the period of 2023 and be taxed separately? In response to the recent questions related to the year-end bonus consulted by taxpayers, Sichuan Tax will answer.
Ask. Our company issued a year-end bonus in December 2023, can we apply the preferential policy of separate tax calculation?
OK. According to the Announcement of the State Administration of Taxation of the Ministry of Finance on Extending the Implementation of the Individual Income Tax Policy for Annual One-time Bonus (Announcement No. 30 [2023] of the State Administration of Taxation of the Ministry of Finance), resident individuals who obtain the annual one-time bonus before December 31, 2027 can continue to choose to enjoy the preferential policy of separate taxation.
Ask. I heard that the year-end bonus can also be taxed together with comprehensive income, should I choose to calculate taxes separately or together? Which is more suitable?
How to choose the tax calculation method for the year-end bonus, it is recommended that you choose according to your own situation. Let's take a look at two examples
Example 1: Lao Wang's annual salary is 300,000 yuan, and the bonus at the end of the year is 24,000 yuan, assuming that he can enjoy three insurances and one housing fund, support for the elderly, etc., and deduct a total of 44,000 yuan.
Option 1: Combine the 24,000 yuan bonus and 300,000 yuan salary for tax calculation.
According to the formula, "Annual comprehensive income tax payable = (cumulative income - cumulative tax-exempt income - cumulative deduction of expenses - cumulative special deduction - cumulative special additional deduction - cumulative other deductions determined in accordance with the law) applicable tax rate - quick deduction".
i.e. (24000+300000-0-60000-44000-0) 20%-16920
27,080 yuan.
It is concluded that the annual comprehensive income tax payable of Lao Wang is 27,080 yuan.
Option 2: Tax the $24,000 bonus separately.
1.Calculate the tax payable for the bonus to be taxed separately.
When calculating the tax, divide the bonus of 24,000 yuan by 12 months to obtain the taxable income of 2,000 yuan for the whole month;
The 3% tax rate is applied with reference to the "Monthly Converted Comprehensive Income Tax Rate Table", and there is no quick deduction;
According to the formula "Tax Payable, Annual One-time Bonus Income, Applicable Tax Rate, Quick Deduction".
That is, the tax payable for the bonus is taxed separately = 24000 3% - 0 = 720 yuan.
2.Calculate the annual tax payable on other comprehensive income other than the bonus.
When the annual final settlement is declared, the annual one-time bonus is taxed separately;
In addition to the bonus, other comprehensive income shall be declared in the annual reconciliation;
According to the formula, "Annual comprehensive income tax payable = (cumulative income - cumulative tax-exempt income - cumulative deduction of expenses - cumulative special deduction - cumulative special additional deduction - cumulative other deductions determined in accordance with the law) applicable tax rate - quick deduction".
i.e. (300000-0-60000-44000-0) 20%-16920
22280 yuan.
3.Calculate the actual tax payable for the whole year.
According to the results of the above two steps, the actual annual tax payable of Lao Wang is 22,280 + 720 = 23,000 yuan.
Under the two methods, the difference in tax amount is 4,080 yuan, and it is more cost-effective for Lao Wang to choose to calculate taxes separately.
Example 2: Xiao Zhang's annual salary is 130,000 yuan, and the bonus at the end of the year is 60,000 yuan, assuming that he can enjoy three insurances and one housing fund, children's education, etc., with a total deduction of 40,000 yuan.
Option 1: Combine the 60,000 yuan bonus and 130,000 yuan salary for tax calculation.
According to the formula, "Annual comprehensive income tax payable = (cumulative income - cumulative tax-exempt income - cumulative deduction of expenses - cumulative special deduction - cumulative special additional deduction - cumulative other deductions determined in accordance with the law) applicable tax rate - quick deduction".
i.e. (130000+60000-0-60000-40000-0) 10%-2520
6480 yuan.
The annual comprehensive income tax payable for Xiao Zhang is 6,480 yuan.
Option 2: Tax the $60,000 bonus separately.
1.Calculate the tax payable for the bonus to be taxed separately.
When calculating the tax, divide the bonus of 60,000 yuan by 12 months to obtain the taxable income of 5,000 yuan for the whole month;
Refer to the "Monthly Converted Comprehensive Income Tax Rate Table" to apply a 10% tax rate, and the quick deduction is 210;
According to the formula "Tax Payable, Annual One-time Bonus Income, Applicable Tax Rate, Quick Deduction".
That is, the tax payable for the bonus is taxed separately = 60,000 10%-210 = 5,790 yuan.
2.Calculate the annual tax payable on other comprehensive income other than the bonus.
When the annual final settlement is declared, the annual one-time bonus is taxed separately;
In addition to the bonus, other comprehensive income shall be declared in the annual reconciliation;
According to the formula, "Annual comprehensive income tax payable = (cumulative income - cumulative tax-exempt income - cumulative deduction of expenses - cumulative special deduction - cumulative special additional deduction - cumulative other deductions determined in accordance with the law) applicable tax rate - quick deduction".
i.e. (130000-0-60000-40000-0) 3%.
900 yuan. 3.Calculate the actual tax payable for the whole year.
According to the results of the above two steps, the total annual tax payable of Xiao Zhang is 900 + 5790 = 6690 yuan.
Under the two methods, the difference in tax amount is 210 yuan, and it is more cost-effective for Xiao Zhang to choose a combined tax calculation.
Ask. If the year-end bonus chooses to enjoy a separate tax calculation policy, how should the individual income tax be calculated?
If a resident individual obtains an annual one-time bonus, in accordance with the provisions of the Notice of the State Administration of Taxation on Issues Concerning the Adjustment of the Method of Calculating and Levying Individual Income Tax on the Annual One-time Bonus Obtained by Individuals (GSF No. 9, 2005), before December 31, 2027, it will not be included in the comprehensive income of the current year, and the annual one-time bonus income will be divided by the amount obtained for 12 months, and the applicable tax rate and quick deduction will be determined according to the comprehensive income tax rate table converted on a monthly basis, and the tax shall be calculated separately. It is calculated as follows:
Tax payable Annual one-time bonus income Applicable tax rate Quick deduction.
Example: Xiao Ming gets a bonus of 4 at the end of the year80,000 yuan, choose to enjoy the annual one-time bonus separate tax policy. First, divide 48,000 yuan by 12 months to get 4,000 yuan; Secondly, from the comprehensive income tax rate table converted by month, the corresponding tax rate of 4,000 yuan is 10%, and the quick deduction is 210; Finally, 48000 10%-210=4590 yuan, Xiao Ming should pay personal income tax of 4590 yuan.
Ask. Our unit issued a year-end bonus in January 2024, so can this year-end bonus be counted in the period of 2023 and calculate the individual income tax separately?
No. The annual one-time bonus is paid in the year in which it belongs to the year. The "year" of the annual tax settlement is the tax year, which is from January 1 to December 31 of the Gregorian calendar.
If it is paid at the end of 2023, it is income for 2023; If it is paid in January 2024, it is income for 2024.