If you need to pay taxes after retirement.
The current retirement age in our country was set in the 50s of the last century, when the average life expectancy of people was less than 50 years old. With the development of economy and society, life expectancy is increasing every year. Therefore, many retirees now have the strength to work after retirement, and are hired back by the company to continue to work, and the additional income obtained needs to pay personal income tax.
1. What is retiree reappointment?
The reply of the State Administration of Taxation on the definition of re-employment of retirees (Guo Shui Han [2006] No. 526) stipulates that the "re-employment of retirees" mentioned in Guo Shui Han [2005] No. 382 must meet the following four conditions at the same time:
Have signed a labor contract (agreement) with the employer for more than 1 year, and have a long-term or continuous employment relationship;
Unable to go to work normally due to personal leave, sick leave, vacation, etc., but still have a fixed or basic salary;
Enjoy the same benefits, social security, training and other benefits as other regular employees of the unit;
The unit will be responsible for organizing the job promotion and professional title evaluation of the employees.
The announcement of the State Administration of Taxation on issues related to individual income tax (Announcement No. 27 of 2011 of the State Administration of Taxation) further stipulates that Article 3 of the Reply of the State Administration of Taxation on the Definition of Reappointment of Retirees (Guo Shui Han [2006] No. 526) stipulates that whether an employer pays social security premiums to retirees is no longer a defining condition for retirees to re-appoint.
According to the regulations, retirees must meet four conditions at the same time for re-appointment:
Have signed an employment contract for 1 year or more;
You can't go to work because of sick leave, etc., but you still have a fixed or basic salary;
Enjoy the same benefits as regular employees;
The unit will be responsible for organizing the job promotion and professional title evaluation of the employees.
It should be noted that retired rehired personnel are different from those who have not retired, they have already retired, so whether they are "retired re-employed" cannot be judged by whether the employer pays them social security premiums.
2. How to pay taxes on the income of rehired personnel?
According to 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 from re-employment (Guo Shui Han [2005] No. 382), the money earned by individuals from part-time jobs shall be subject to individual income tax according to the taxable item of "income from wages and salaries" after deducting the deduction standards stipulated in the individual income tax law.
According to Article 8 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China (Order No. 519 of the People's Republic of China), "income from wages and salaries refers to the wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies and other income related to work or employment obtained by individuals as a result of work or employment." ”
There are two parts of the monthly income of retired rehired personnel, one is retirement salary and the other is reemployment income.
Retirement salary: No personal income tax is payable.
Re-employment income: If the re-employment during the re-employment period meets the four conditions defined by "retiree re-employment", then the monthly re-employment income earned during the re-employment period shall be subject to individual income tax according to the taxable item of "income from wages and salaries"; If the four conditions defined by "re-employment of retirees" are not met, individual income tax will be paid according to the taxable item of "income from remuneration for labor services".