Calculation method of individual income tax payment
1. Calculation steps.
The calculation steps of individual income tax generally include the following steps:
1.Determination of taxable income: Taxable income is the balance of personal income minus various deductions stipulated in the tax law. These deductions usually include basic living expenses, expenses for supporting the elderly, children's education expenses, etc.
2.Find Applicable Tax Rate: Find the appropriate tax rate based on the tax rate range in which the taxable income is located. The tax rate of personal income tax is divided into different brackets, which vary according to the amount of income.
3.Calculate the tax payable: The tax payable is the taxable income multiplied by the applicable tax rate minus the quick deduction. A quick deduction is a fixed amount based on the entire tax bracket to reduce the amount of tax payable.
2. Cases. Here's a simple example of a personal income tax calculation:
Suppose a person's annual income is $100,000 and the deductions add up to $20,000.
1.Taxable income = annual income - deductions = $100,000 - $20,000 = $80,000.
2.Find the applicable tax rate: According to the Individual Income Tax Law, the taxable income between RMB36,000 and RMB144,000 is taxed at a rate of 10%.
3.Calculate the tax payable: tax payable = taxable income Applicable tax rate - quick deduction = 80,000 yuan 10% -2,500 yuan = 5,500 yuan.
3. Precautions.
When calculating individual income tax, you need to pay attention to the following points:
1.Understand the tax law provisions: The calculation of individual income tax is based on the tax law regulations, so understanding and mastering the tax law regulations is the premise for correct calculation.
2.Verify income and deductions: Taxable income is calculated on the basis of personal income and deductions, so it's crucial to verify the accuracy of income and deductions.
3.Pay attention to the time node: There are strict regulations on the payment time of individual income tax, and it is necessary to complete the declaration and payment within the specified time.
4.Comply with tax regulations: When calculating personal income tax, it is important to comply with tax regulations and do not make false declarations or evade taxes.
5.Reasonable tax planning: You can reduce the burden of personal income tax by rationally planning your taxes, such as increasing your income through financial management and investment, or arranging your expenses reasonably to reduce your taxable income.
Through the above steps, cases and precautions, we can understand the basic knowledge and operation methods of individual income tax payment and calculation methods. In practice, it is also necessary to conduct a specific analysis according to the specific situation, and if you have any questions, you can consult a professional tax professional or accountant.