We know that the basic deduction standard of personal income tax per month is 5,000 yuan, and it is calculated according to 60,000 yuan for the whole year. However, in practice, the withholding and prepayment of the employer is closely related to the employee's entry time. For example, for most fresh graduates, they usually don't officially enter the workforce until July. This means that in their first tax year, the unit can only withhold and prepay according to the standard of 5,000 yuan per month, and the cumulative deduction of 30,000 yuan for the whole year. Therefore, employees often need to refund their own taxes when they make the final settlement in the following year.
In order to solve this problem, the State Administration of Taxation specifically stipulates that for resident individuals who obtain income from wages and salaries for the first time in a tax year, the withholding agent can calculate the cumulative deduction of expenses according to the monthly multiplication of 5,000 yuan by the number of months of the taxpayer as of the current month when withholding and prepaying individual income tax.
In practice, in order to enjoy this preferential policy, the tax clerk of the unit needs to select the option of "first-time student in the current year" or "first-time employee in the current year" when entering employee information in the individual income tax withholding system. If you do not actively select it, the system will assume that the employee does not belong to this situation.
This may seem simple, but it can actually reduce the tax burden on new employees and avoid the hassle of applying for a tax refund the following year. However, many employers use their own payroll systems to calculate individual income tax, which often does not have this function. In order to reduce costs, units are often reluctant to carry out secondary development. Therefore, although many people already know about this policy, it is still publicized again to let more people know about this policy. When more and more people are aware of this offer, the unit has to follow the regulations. Personal income tax