Individual income tax is a kind of income tax levied on various incomes obtained by individuals (natural persons). The calculation method of individual income tax mainly depends on the nature, ** and amount of income. According to the provisions of the Individual Income Tax Law, individual income tax is divided into two types: comprehensive income and classified income. Comprehensive income refers to the four types of income obtained by a resident individual in a tax year, including wages and salaries, remuneration for labor services, author's remuneration and royalties, and the individual income tax is calculated according to the method of cumulative withholding and prepayment. Classified income refers to other income obtained by individuals, such as income from production and operation of individual industrial and commercial households, income from contracting and leasing of enterprises and institutions, income from property leasing, income from property transfer, income from interest, dividends and bonuses, and incidental income, etc., which are calculated according to the method of each income or monthly income.
1. Calculation method of individual income tax on comprehensive income
The calculation method of individual income tax on comprehensive income refers to the withholding agent's prepaid taxable income after deducting the accumulated basic deduction expenses, cumulative special deductions, cumulative special additional deductions and other cumulative deductions determined in accordance with the law as the balance of the comprehensive income paid by the withholding agent in a tax year, and the balance after deducting the withheld and withheld tax is calculated as the withholding tax amount for the current period. This method is applicable to comprehensive income, including income from wages and salaries, remuneration for labor services, author's remuneration, and royalties.
The formula for calculating individual income tax on comprehensive income is as follows:
The amount of tax to be withheld and paid in the current period = (cumulative amount of taxable income withheld and withheld, withholding rate - quick deduction) - cumulative tax reduction and exemption amount - cumulative amount of withheld and withheld tax.
Cumulative withholding and prepayment of taxable income = cumulative income - cumulative tax-exempt income - cumulative deduction of expenses - cumulative special deduction - cumulative special additional deduction - cumulative other deductions determined in accordance with law.
Among them, the accumulated income refers to the amount of comprehensive income paid by the withholding agent in a tax year up to the current monthCumulative tax-exempt income refers to the amount of income exempt from individual income tax paid by the withholding agent up to the current month in a tax yearThe cumulative deduction of expenses refers to the basic deduction expenses deducted by the withholding agent up to the current month in a tax year, which is currently 5,000 yuan per monthCumulative special deductions refer to the special deductions for social insurance premiums and housing provident funds deducted by the withholding agent as of the current month in a tax yearCumulative special additional deductions refer to the special additional deductions deducted by the withholding agent as of the current month in a tax year, such as children's education, continuing education, serious illness medical treatment, housing loan interest, housing rent, and support for the elderlyOther deductions determined in accordance with the law refer to other deductions such as eligible public welfare and charitable donations deducted by the withholding agent in a tax year as of the current monthThe withholding rate and quick deduction refer to the withholding rate and quick deduction in the comprehensive income tax rate table corresponding to the cumulative withholding and withholding of taxable income;The cumulative tax reduction and exemption refers to the amount of individual income tax reduction and exemption enjoyed by the withholding agent in a tax year up to the current monthThe cumulative amount of withheld tax refers to the amount of individual income tax withheld and paid by the withholding agent as of the previous month in a tax year.
The individual income tax rate table for comprehensive income is as follows:
II. Calculation method of individual income tax on classified income
The calculation method of individual income tax on classified income refers to the calculation of individual income tax on other income obtained by an individual according to the method of each income or monthly income. The formula for calculating individual income tax on classified income is as follows:
Tax payable = taxable income Applicable tax rate - quick deduction.
Taxable income = amount of income - tax-exempt income - deduction of expenses - other deductions determined by law.
Among them, the amount of income refers to the amount of income obtained by the individual by classification;Tax-exempt income refers to the amount of income obtained by an individual that is exempt from individual income tax;Deduction of expenses refers to the expenses that can be deducted according to law when an individual obtains classified income;Other deductions determined in accordance with the law refer to other items that can be deducted according to law when an individual obtains classified income;Applicable tax rates and quick deductions refer to the applicable tax rates and quick deductions in the table of categorical income tax rates corresponding to the taxable income.
The individual income tax rate table for classified income is as follows:
Among them, the income from production and operation of individual industrial and commercial households and the income from contracting and leasing of enterprises and institutions shall be calculated according to the balance of annual income after deducting costs, expenses and losses, and the tax payable shall be calculated in accordance with the applicable tax rate table.
The applicable tax rate table is as follows:
The tax payable on income from property lease, property transfer, interest, dividends and bonuses shall be calculated at a rate of 20% according to the balance of each income after deducting 800 yuan. For incidental income, the tax payable shall be calculated at a rate of 20% according to the balance after deducting the proportion of 20% of each income.
The above is a brief introduction to the calculation method of individual income tax, I hope it will be helpful to you. If you have any questions or suggestions about personal income tax, please leave a message in the comment area, and I will reply to you as soon as possible. Thank you for reading and supporting!