How to calculate personal pension tax deduction?

According to the announcement of the Ministry of Finance and State Taxation Administration of The People's Republic of China on individual income tax policy for individual pensions (Ministry of Finance

Announcement No.34 of State Taxation Administration of The People's Republic of China in 2022 stipulates that from June 5438+ 10/day, 2022, the preferential tax payment policy for individual pensions will be implemented. In the payment link, the individual's contribution to the individual pension fund account is deducted from the comprehensive income or operating income according to the limit standard of 12000 yuan/year; In the investment link, personal income tax will not be levied on the investment income included in the personal pension fund account for the time being; In the process of collection, the personal pension received by the individual is not incorporated into the comprehensive income, and the personal income tax is calculated and paid separately at the tax rate of 3%, and the tax paid is included in the "income from wages and salaries" project.

It can be seen from the policy that taxpayers who participate in individual pensions can deduct before tax when calculating the taxable income of comprehensive income or taxable income of production and operation, and the maximum deduction limit is 12000 yuan. The taxable income is the tax basis for calculating the tax amount, and the taxable amount of comprehensive income is equal to the taxable income of comprehensive income multiplied by the applicable tax rate of comprehensive income (3%-45%) minus the quick deduction; The taxable amount of production and operation income is equal to the taxable amount of production and operation income multiplied by the applicable tax rate of operation income (5%-35%) minus the quick deduction.

Comprehensive income includes income from wages and salaries, income from labor remuneration, income from royalties. Take taxpayers who only get income from wages and salaries as an example, the annual taxable amount of wages and salaries = (annual wages and salaries-60,000-special additional deduction for three insurances and one gold-"special additional deduction for children's education"-other deductions confirmed according to law) × applicable tax rate-quick deduction.

Personal endowment insurance is one of the other deductions confirmed according to law. Because different taxpayers have different income levels and applicable tax rates, the tax deduction effect of participating in individual pensions is also different.

If the taxpayer applies the tax rate of 3% (the annual taxable income is less than 36,000 yuan), the personal pension10.2 million yuan will be paid according to the top amount. For example, the payment link can deduct a tax 360 yuan every year; If the taxpayer applies the 45% tax rate file, it can deduct 5400 yuan every year.

For taxpayers who have not reached the threshold, for example, the monthly income is 5,000 yuan, the annual income is 60,000 yuan, and the annual taxable income is less than 0, so they do not need to pay taxes, and they cannot get tax credits when they participate in individual endowment insurance.

At the same time, it should be noted that for individual pensions, there is no need to pay taxes when participating in the payment link, and it can be deducted before tax; In the investment link, personal income tax will not be levied on the investment income included in the personal pension fund account for the time being; However, in the process of collection, the individual pension received by the individual needs to pay a separate tax at the rate of 3%.

It can be seen that there is still a difference between participating in personal business pension and basic pension insurance (employee pension insurance and urban and rural residents pension insurance in social security). When receiving basic old-age insurance, you don't need to pay a tax; The latest personal business pension, the annual payment limit is 1.2 million yuan, and 3% tax is required when it is collected.