On December 27, the Ministry of Finance issued
On December 27, the Ministry of Finance issued a circular on the convergence of
preferential policies after the amendment of the Personal Income Tax Law. It mainly involves seven major concerns:
Policies on one-time bonus for the whole year, deferred payment of annual performance salary for the head of a central enterprise and term Award
On the Policy of Equity Incentive of Listed Companies
Policies on Commission Income of Insurance Marketing Personnel and Securities Brokers
On the Policy of Individual Receiving Enterprise Annuity and Occupational Annuity
On the Policy of One-time Compensation Income for Releasing Labor Relations, Early Retirement and Internal Retirement
On the Policy of Selling Houses to Employees at Low Prices
On the Policy of Allowances and Subsidies for Foreign Individuals
The year-end prize concessions will remain unchanged until 2022
As for the most concerned annual bonus issue, the circular clearly states that the annual one-time bonus obtained before December 31, 2021 is not incorporated into the current year’s comprehensive income. The annual one-time bonus income is divided by the amount obtained in 12 months. According to the corresponding comprehensive income tax rate table, the applicable tax rate and the quick calculation deduction are determined and the tax is calculated separately. Since January 1, 2002, when a resident obtains a one-time bonus for the whole year, he or she shall be incorporated into the current year’s comprehensive income to calculate and pay his or her personal income tax.
The tax rate table is as follows:
Previously, Times Jun has written in detail how to calculate the annual bonus tax, specific stampable links: OK! The year-end tax incentives continue. Count the six tax avoidance zones under the new tax rate. You must know the 10 main points of the new tax.
According to the annual bonus tax algorithm, when the annual bonus reaches the critical point of taxation, there will be a situation of “less than 1000 yuan rather than more than 1 yuan”, so it needs reasonable tax avoidance. Under the new tax rate table, the previous year-end bonus tax avoidance ranges will also be adjusted. There are six tax avoidance ranges, as follows:
Income from equity incentives of listed companies before 2022 is excluded from current income_
According to the notification, residents who obtain equity incentives such as stock options, stock appreciation rights, restricted stocks and equity incentives will not be incorporated into the current year’s comprehensive income until December 31, 2021. The comprehensive income tax rate table shall be applied separately to calculate tax payment.
The calculating formula is as follows: Taxable amount = equity incentive income * applicable tax rate – quick deduction number. For residents who have obtained two or more equity incentives in a tax year, they should be combined and calculated according to the above formula.
The notice also states that the equity incentive policy after January 1, 2022 will be clarified separately.
Insurance salesmen and securities brokers’commission income is so calculated as tax_
For the commission income obtained by insurance salesmen and securities brokers, the notice considers that it belongs to the income of service remuneration. The balance after deducting 20% of the expenses from the income excluding VAT is the income. After deducting the development cost and the additional tax fee, the income is incorporated into the current year’s comprehensive income and the personal income tax is calculated and paid.
Among them, the exhibition cost of insurance salesmen and securities brokers is calculated at 25% of the revenue. Individual calculation of tax payable_for enterprise annuity and occupational annuity
The circular indicates that if an individual reaches the retirement age prescribed by the state and receives an enterprise annuity or an occupational annuity that meets the relevant provisions, it shall not be incorporated into the comprehensive income and the taxable amount shall be calculated separately in full.
Where the tax is paid monthly, the monthly tax rate table shall be applied to calculate the tax payment.
If they are collected quarterly, they shall be divided into months on average, and tax shall be calculated according to the monthly tax rate table applicable to the amount of monthly receipts.
If the tax is collected annually, the comprehensive income tax rate table shall be applied to calculate the tax payment.
The comprehensive income tax rate table shall be applied to the calculation of tax payment for the one-time personal account fund of an individual’s annuity, or the one-time personal account balance of an individual’s designated beneficiary or legal heir after the death of the individual.
The monthly tax rate table shall be applied to the calculation of tax payment for the funds or balances of individual accounts