How to calculate personal income tax

The commonly used tax calculation formula is tax amount = tax payable * applicable tax rate-quick deduction, as follows:

1, tax payable = total wages-individual social security contributions-individual housing provident fund contributions-exemption amount;

2. Total wages: refers to the total labor remuneration paid directly by each unit to all employees of the unit within a certain period of time (generally one month), including hourly wages, piece-rate wages, bonuses, allowances and subsidies, overtime wages, wages paid under special circumstances and other items;

3. Personal social security contributions and personal housing provident fund contributions are the total amount of personal social security contributions and housing provident fund contributions that employees should pay in the current month, which are withheld and remitted by enterprises. Exemption amount: the tax law stipulates that the exemption amount is 5000 yuan.

How to reduce taxes?

1. Actively use invoices for communication fees, transportation fees, travel expenses and meals to avoid taxes. According to the national tax law, all communication, transportation expenses and meal-missing subsidies are paid in cash, regarded as wages and salaries, and included in the tax basis to calculate and pay personal income tax;

2. Use the year-end bonus to realize tax avoidance, and incorporate the year-end double salary into the year-end bonus to collect a tax to save tax;

3, clever use of provident fund to avoid individual taxes According to the relevant provisions of the individual income tax law, the monthly housing provident fund paid by working-class individuals is deducted before tax, which means that the housing provident fund paid according to the standard is not taxed. At the same time, employees can pay supplementary provident fund. Therefore, there is still room for ordinary employees to increase the deposit of provident fund, and it is reasonable and feasible for wage taxpayers to use provident fund skillfully to avoid tax;

4. There are tax incentives for employees to leave their jobs, and the compensation they get from leaving their jobs is tax-free within three times of the average annual salary of local employees;

5. In summer, employees' expenses of refreshing drinks for heatstroke prevention and cooling can be reimbursed tax-free, but they are paid with their wages.

What are the procedures for tax declaration?

1, the taxpayer shall go to the tax service hall of the competent tax authority to receive the paper Personal Income Tax Return (applicable to taxpayers with annual income of10.2 million yuan);

2 taxpayers should fill in the declaration form in duplicate as required;

3 taxpayers directly to the competent tax authorities tax service office to submit a copy of the declaration form and identity certificate;

4. Taxpayers should keep a declaration form for future reference.

Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC).

The following personal income shall be subject to personal income tax:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.