Calculation method and case analysis of individual income tax remittance

I. Taxable income

        Taxable income=total income – non-taxable income – tax-exempt income – various deductions – losses of previous years

        Notes:

        (1) Special deduction: the part of basic endowment insurance, basic medical insurance, unemployment insurance and housing accumulation fund borne by individuals.

        (2) Special additional deductions: seven special additional deductions, including children’s education, continuing education, serious illness medical treatment, care expenses for infants and children under 3 years old, housing loan interest, housing rent and supporting the elderly.

        (3) Other deductions: personal pension, personal payment of enterprise annuity and occupational annuity that meet the national regulations, personal purchase of commercial health insurance and tax deferred commercial pension insurance that meet the national regulations, and other items that can be deducted according to the State Council regulations.

II. Tax payable

        Taxable amount=taxable income × Applicable tax rate – quick calculation deduction

III. Supplementary/refundable tax payable after final settlement of individual income tax

        Tax payable/refundable in 2022=tax payable in 2022 – tax prepaid in 2022

        [Case analysis]

        Komatsu, a Chinese resident, obtained the following income in 2022:

        (1) The annual salary paid by the company A who obtained the post was 200000 yuan, and 30000 yuan of three insurances and one gold was paid according to the national standard. In addition, 20000 yuan of special additional deduction was eligible.

        (2) In April, we received a design fee of 5000 yuan from Company B.

        (3) In July, we received 40000 yuan of remuneration from the publishing house.

        (4) Provide the right to use the copyright to Tiancheng Publishing House, and obtain a one-time income of 100000 yuan in October.

        Please:

        How much individual income tax should be paid in 2022? It is assumed that Komatsu has paid 20000 yuan of individual income tax in advance.

        A:

        ① The annual income from wages and salaries is 200000 yuan

        ② Annual income from labor remuneration=5000 × (1-20%)=4000 yuan

        ③ Annual income from remuneration=40000 × （1-20%） × 70%=22400 yuan

        ④ Annual income from royalties=100000 × (1-20%)=80000 yuan

        ⑤ Annual taxable income of comprehensive income=(200000+4000+22400+80000) – 600000-30000-20000=196400 (yuan)

        According to the applicable tax rate table of individual comprehensive income of residents, the applicable tax rate is 20%, and the quick calculation deduction is 16920

        Tax payable=196400 × 20% – 16920=22360 (yuan)

        Supplementary tax payable by Komatsu in 2022=22360-2000=2360 (yuan)

Article source：Tax sea