How is personal income tax calculated?

Personal income tax is calculated according to the amount of income, which is calculated by the formula (annual comprehensive income - social security deductions - special additional deductions - 60,000) * tax rate, of which 60,000 is the starting line of personal income tax, that is, only the part of the annual income of more than 60,000 yuan will be levied on personal income tax.

For resident individuals who receive income from remuneration for labor, manuscripts, and royalties, the individual income tax is withheld and prepaid by the withholding agent on a monthly or monthly basis.

Expanded Information:

"The People's Republic of China Individual Income Tax Law" Article 11 of the Individual Income Tax Law of the People's Republic of China, resident individuals shall be required to calculate the individual income tax on an annual basis for the comprehensive income they receive. If there is a withholding agent, the withholding agent shall withhold and prepay the tax on a monthly or monthly basis; if there is a need for remittance, the remittance shall be made between March 1 and June 30 of the year following the year of income. The withholding and prepayment methods shall be formulated by the competent tax authorities under the State Council.

If a resident individual provides special additional deduction information to the withholding agent, the withholding agent shall make the deduction in accordance with the provisions of the monthly withholding and prepayment of taxes, and shall not refuse to do so. If a non-resident individual earns wages, salaries, remuneration for labor, remuneration for manuscripts and royalties, and has a withholding agent, the withholding agent shall withhold and pay the tax on behalf of the non-resident individual on a monthly or monthly basis, without making any remittance.

State Administration of Taxation - Individual Income Tax Law of the People's Republic of China