What are the tax-related issues that retirees need to pay attention to when re-employing and re-serving Let's look down
1.How to calculate and pay individual income tax for retired and rehired employees
1. If the rehired retirees are in the form of part-time jobs, they shall pay individual income tax according to the "income from labor remuneration".
The reply of the State Administration of Taxation on how to calculate and levy individual income tax on the income obtained from individual part-time jobs and retirees (Guo Shui Han 2005 No. 382) stipulates that the income obtained by individual part-time jobs shall be subject to individual income tax according to the taxable item of "income from remuneration for labor services".
2. If the rehired retiree is re-employed after signing a labor contract with the company, the following provisions shall apply:
1.The income obtained by retirees from re-employment shall be subject to individual income tax according to the taxable item of "income from wages and salaries" after deducting the deduction standard for expenses stipulated in the individual income tax law.
2.Retirees re-appointed shall meet the following conditions at the same time:
1) The employee has signed a labor contract (agreement) with the employer for more than one year (including one year), and there is a long-term or continuous employment and employment relationship;
2) Employees who are unable to attend work normally due to personal leave, sick leave, vacation, etc., are still entitled to fixed or basic salary income;
3) Employees enjoy the same benefits, training and other benefits as other regular employees of the unit;
4) The employer is responsible for organizing the work of job promotions and professional title evaluations of employees.
3. The retirement allowance and basic pension obtained by retirees shall be exempted from individual income tax in accordance with the relevant provisions of Article 4 of the Individual Income Tax Law of the People's Republic of China: the settling-in allowance, retirement allowance, basic pension or retirement allowance, retirement allowance and retirement living allowance paid to cadres and employees in accordance with the unified provisions of the state shall be exempted from individual income tax.
2.Other taxable income of retirees shall be subject to individual income tax in accordance with the law
According to the provisions of the Individual Income Tax Law, the income from the production and operation of self-employed individuals, the income from contracting and leasing of enterprises and institutions, the income from remuneration for labor services, the income from author's remuneration, the income from property leasing, the income from property transfer, the income from interest and dividends, the accidental income and other income obtained by retirees shall be subject to individual income tax in accordance with the law.
3.The one-time subsidy income obtained by an individual from early retirement is taxed on the basis of salary income
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) stipulates that the one-time subsidy income obtained by individuals through early retirement procedures shall be evenly apportioned according to the actual number of years between the early retirement procedures and the statutory retirement age, and the applicable tax rate and quick deduction shall be determined, and the comprehensive income tax rate table shall be applied separately to calculate the tax.
Calculation formula: tax payable = actual number of years from early retirement to statutory retirement age.
4.Whether the wages of retired and rehired personnel can be deducted before corporate income tax
According to the provisions of the Announcement of the State Administration of Taxation on Several Issues Concerning the Tax Treatment of Taxable Income of Enterprise Income Tax (Announcement No. 15 of 2012 of the State Administration of Taxation) on the pre-tax deduction of seasonal and temporary workers, the actual expenses incurred by an enterprise in hiring seasonal workers, temporary workers, interns and re-employed retirees shall be divided into wage and salary expenses and employee welfare expenses, and shall be deducted before enterprise income tax in accordance with the provisions of the Enterprise Income Tax Law of the People's Republic of China. If it is a wage and salary expense, it is allowed to be included in the base of the total wages and salaries of the enterprise as the basis for calculating the deduction of other related expenses.
5.How to obtain the pre-tax deduction voucher of enterprise income tax for the labor remuneration paid to retired and rehired personnel
The expenditure items incurred by the enterprise in China are VAT taxable items
The other party is a VAT taxpayer who has gone through tax registration, and its expenditure shall be invoiced (including invoices issued by the tax authorities in accordance with regulations) as the pre-tax deduction voucher;
If the other party is a unit that does not need to go through tax registration in accordance with the law or an individual engaged in small and sporadic business, its expenditure shall be based on the invoice or receipt voucher and internal voucher issued by the tax authority as the pre-tax deduction voucher, and the receipt voucher shall contain the name of the receiving entity, the name and ID number of the individual, the expenditure item, the amount of collection and other relevant information.
Policy Basis:
1.Individual Income Tax Law of the People's Republic of China
2.Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China
3.Reply of the State Administration of Taxation on the Calculation and Levy of Individual Income Tax on the Income Obtained by Individual Part-time Workers and Re-employment of Retirees (Guo Shui Han 2005 No. 382).
4.Reply of the State Administration of Taxation on the Definition of Re-employment of Retirees (Guo Shui Han 2006 No. 526).
5.Announcement of the State Administration of Taxation on Issues Concerning Individual Income Tax (Announcement No. 27 [2011] of the State Administration of Taxation).
6.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).
7.Announcement of the State Administration of Taxation on Several Issues Concerning the Tax Treatment of Taxable Income of Enterprise Income Tax (Announcement No. 15 [2012] of the State Administration of Taxation).
8.Announcement of the State Administration of Taxation on Issues Concerning the Pre-tax Deduction of Wages and Salaries and Employee Welfare Expenses of Enterprises (Announcement No. 34 [2015] of the State Administration of Taxation).