Do I have to declare tax? What's the impact of not declaring?

At present, there is no law or policy in China that clearly stipulates that residents must settle accounts annually. As for whether to declare a tax, everyone should choose according to their actual situation. Whether to apply for tax refund after the annual settlement is the taxpayer's right and does not bear any responsibility. However, if everyone meets the tax conditions, but fails to declare truthfully, they may face some adverse consequences. Let's see who needs to declare a tax first.

According to Article 10 of the Individual Income Tax Law of People's Republic of China (PRC), in any of the following circumstances, taxpayers shall file tax returns according to law:

(a) to obtain comprehensive income needs to be settled; (2) There is no withholding agent for obtaining taxable income; (3) Having obtained taxable income and the withholding agent has not withheld the tax;

(4) Obtaining overseas income;

(5) Cancellation of China hukou due to immigration;

(6) Non-resident individuals obtain wages and salary income from two or more places in China;

(seven) other circumstances stipulated by the State Council.

If you meet one or more of the above conditions, you must consciously declare a tax.

Of course, if everyone's income is relatively small, for example, the average monthly income is less than 5,000 yuan, which can't meet the standard of individual tax payment at all, then it won't have any impact if you don't declare the comprehensive settlement.

According to the relevant provisions of the Announcement of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Policy Issues Concerning the Settlement and Payment of Comprehensive Income of Individual Income Tax (No.94 of 20 19), taxpayers who have paid personal income tax in advance according to law and meet one of the following circumstances do not need to apply for annual settlement and payment:

1, the annual settlement is taxable, but the annual comprehensive income does not exceed 1.2 million yuan;

2, the annual tax amount does not exceed 400 yuan;

3. The prepaid tax amount is consistent with the annual tax payable or the tax refund has not been processed.

If one or more of the above three conditions are met, there is no need to declare a tax.

To put it simply, everyone usually pays taxes, or never pays taxes, but after calculating the annual comprehensive income, there is actually no need to pay taxes, and it is not necessary to declare. However, if everyone has paid taxes at ordinary times and meets the tax refund standard, the tax department will not take the initiative to apply for tax refund for you if you don't make annual settlement.

For example, a person usually deducts a tax every month, and the company pays a tax of 6,543,800 yuan a year. However, according to his actual income, the tax he should actually pay is only 5,000 yuan when the annual comprehensive settlement is made, which means that he has 5,000 yuan of tax that can be refunded. If this person does not choose to file tax returns, the tax authorities will not voluntarily return the 5,000 yuan. In addition, there is another situation. If you need to pay a tax, but fail to declare it in time, you will face many adverse effects.

If everyone's income is usually relatively high, but the tax declared by the unit is relatively small, it may be necessary to pay a tax at this time; Another situation is that everyone has some copyright or copyright income, but the other party has not declared a tax. At this time, you may have to pay a tax. As for whether a tax should be paid, it will be clearly listed when the annual settlement is made. If you need to pay a tax, but you don't declare it on your own initiative, and you still don't declare it after the annual comprehensive tax declaration period, this is a tax late fee.

Delaying the payment of individual taxes will have two adverse effects.

First, face fines.

According to the relevant laws and regulations, if a taxpayer fails to file an individual tax return, resulting in non-payment or underpayment of tax, the tax authorities will recover the non-payment or underpayment of tax and the late payment fee, and impose a fine of more than 50% and less than 5 times of the non-payment or underpayment of tax.

The second is to affect personal credit information.

In the latest version of the credit report, personal tax overdue will be reported to the personal credit report at the same time. If everyone has tax evasion, the tax department will report these bad information to the personal credit information system, and then everyone's credit will leave bad information.

In short, it is the duty of citizens to pay taxes, and everyone should pay taxes truthfully. At the same time, in the annual comprehensive settlement, if everyone's income is relatively high, there may be tax arrears, so it is necessary to declare a tax in time.

The deadline for tax returns in 2022 is June 30, 2022. You'd better complete all the declarations before this date, and don't owe taxes, otherwise there will be some adverse effects.

Of course, if everyone's income is relatively low, for example, the annual income is less than1.20 thousand, and there is no need to pay any tax at all, then everyone can choose to declare or not, but if they meet the tax refund conditions, they can't declare, and they will be responsible for this loss.