Contents of annual remittance:
After the end of fiscal 2021, resident individuals (hereinafter referred to as "taxpayers") need to summarize the income from four types of income (hereinafter referred to as "comprehensive income") such as wages and salaries, labor remuneration, authors' remuneration, and royalties obtained from January 1, 2021 to December 31, 2021 (hereinafter referred to as the tax year), after deducting 60,000 RMB of expenses, as well as special deductions, special additional deductions, other deductions determined according to law, and eligible donations to public welfare charitable undertakings. Apply the comprehensive income tax rate and subtract the quick deduction, calculate the final tax payable in the annual tax, and then subtract the amount of tax prepaid in the tax year, obtain the amount of tax that should be refunded or supplemented, declare to the tax authority and handle the tax refund or supplement. The specific calculation formula is as follows:
The amount of tax that should be refunded or supplemented = [(Comprehensive income amount - 60,000 RMB - special deductions such as "three insurances and one gold" - special additional deductions such as children's education - other deductions determined according to law - eligible public welfare charitable donations) × Applicable tax rate - Quick calculation deduction] - Tax amount paid in advance
The annual tax calculation does not involve classified income such as property leasing, and the income that taxpayers choose not to merge into comprehensive income according to regulations to calculate and pay taxes.
Circumstances where there is no need to apply for annual remittance:
If a taxpayer has already paid personal income tax in accordance with the law during the tax year and meets one of the following circumstances, there is no need to apply for annual tax calculation: the annual tax settlement requires tax reimbursement but the comprehensive income does not exceed 120,000 RMB in the whole year; the amount of tax required for annual remittance does not exceed 400 RMB; the amount of tax already prepaid is consistent with the tax payable on the annual tax settlement; and the taxpayer meets the conditions for tax rebate in the annual remittance but does not apply for a tax refund.
Circumstances where it is necessary to apply for annual remittance:
Taxpayers need to apply for annual tax settlement if they meet one of the following circumstances: the amount of tax withheld is greater than the tax payable on the annual tax and the taxpayer applies for a tax refund; the comprehensive income obtained in the tax year exceeds 120,000 RMB and the amount of tax that needs to be supplemented exceeds 400 RMB.
Where the application of income items is incorrect or the withholding agent fails to perform the withholding obligation in accordance with law, resulting in under-declaration or failure to declare comprehensive income within the tax year, the taxpayer shall handle the annual accounting in accordance with the law.
The pre-tax deductions that can be have:
The following pre-tax deduction items that occur in the tax year and are not declared or deducted in full may be deducted or supplemented during the annual settlement period: the taxpayer and his spouse and minor children are eligible for medical expenses for serious illnesses; the taxpayer's eligible children's education, continuing education, housing loan interest or housing rent, special additional deductions for supporting the elderly, as well as deduction expenses, special deductions, and other deductions determined according to law Taxpayers who meet the conditions to donate to public welfare charities.
Taxpayers who have obtained both comprehensive income and business income may declare deductions of 60,000 RMB, special deductions, special additional deductions and other deductions determined in accordance with law in the comprehensive income or business income, but shall not repeatedly declare deductions.
The annual remittance processing time is from March 1 to June 30, 2022. Taxpayers who are not domiciled in China leave China before March 1 can apply for annual accounting before leaving China.
Taxpayers can choose the following handling methods: handle the annual accounting by themselves. Employers employed through employment (including units withholding and withholding of individual income tax on their labor remuneration according to the cumulative withholding method. ) on your behalf.
Where a taxpayer submits a request for agency handling, the unit shall handle it on its behalf, or train or guide the taxpayer to complete the annual tax declaration and refund (supplementary) tax through the electronic taxation bureau for natural persons (including mobile personal income tax APP, web terminal, the same below).
If handled by the unit on behalf of the unit, the taxpayer shall confirm with the unit in writing or electronically before April 30, 2022, supplement the comprehensive income, relevant deductions, tax incentives and other information obtained outside the unit during the tax year, and be responsible for the authenticity, accuracy and completeness of the information submitted. If the taxpayer fails to confirm with the unit and asks him to handle the annual accounting on his behalf, the unit shall not handle it on his behalf. Entrusting tax-related professional service institutions or other units and individuals (hereinafter referred to as the trustees) to handle the matter, the taxpayer and the trustee need to sign a power of attorney.
After the unit or trustee handles the annual settlement for the taxpayer, it shall promptly inform the taxpayer of the handling situation. If a taxpayer discovers that there is an error in the information on the annual accounting declaration, he may request the unit or trustee to apply for a correction declaration, or he may apply for a correction declaration on his own.