The final settlement of the comprehensive income of individual income tax in 2020 will start on March 1st and continue until June 30th. The competent tax authority shall notify the taxpayer by installments to handle the matter within a certain period of time. At present, the APP of personal income tax has been online on the special page of annual settlement. Taxpayers can make preparations according to the prompts.
According to the regulations, the final settlement of annual consolidated income will be “more refunds and less compensations”. The specific calculation formula is as follows:
Tax refundable or refundable =[(comprehensive income – RMB 60000 – special deduction for “three social insurance and one housing fund” – special additional deduction for children’s education – other deduction determined by law – donation)× applicable tax rate – quick calculation deduction]- tax paid in advance in 2020
It should be noted that the comprehensive income only includes wages and salaries, remuneration for services, remuneration for contributions and royalties, and the annual final calculation does not involve classified income such as property lease, as well as the annual one-time bonus income that taxpayers choose not to incorporate into the comprehensive income for tax calculation.
According to the regulations, taxpayers who have paid individual income tax in advance in accordance with the law in 2020, and meet one of the three circumstances, do not need to handle the annual final calculation.
The three kinds of circumstances specifically include, the annual final calculation needs to pay tax but the annual comprehensive income income does not exceed 120,000 yuan; The amount of tax to be paid in annual final calculation does not exceed 400 yuan; And the amount of tax already paid in advance is the same as the amount of tax payable in the year or the tax refund is not applied for.
That is to say, as long as the annual income of the comprehensive income of the taxpayer is not more than 120,000 yuan, no matter how much the supplementary tax amount is, there is no need to deal with the annual settlement; No matter how high or low the annual income of the comprehensive income is, the taxpayer does not need to deal with the annual settlement.
If the taxpayer has paid tax in advance at ordinary times and the annual tax payable is exactly the same, there is no need to make up tax or refund, and there is no need to deal with the annual final calculation; Or taxpayers voluntarily give up the drawback, also can not deal with annual accounting.
Taxpayers need to pay attention to that if the pre-paid tax is greater than the annual tax payable and the tax refund is applied for, or if the annual consolidated income is more than 120,000 yuan and the amount of supplementary tax is more than 400 yuan, it meets one of the above two situations and the annual final calculation is required.
Taxpayers who need to apply for tax refunds shall provide qualified bank accounts opened within the territory of China. Tax authorities shall, after examination and verification in accordance with relevant provisions, conduct tax refund at the place where the final settlement is made.
In order to facilitate taxpayers to obtain tax refund, tax authorities provide convenient tax refund function on the online tax bureaus for those whose annual comprehensive income is less than 60,000 yuan and who have paid individual income tax in advance. Taxpayers can apply for the annual final tax refund through the summary return form from March 1 to May 31, 2021.
Taxpayers who need to make up tax can pay through online banking, POS machine swiping card of tax handling service hall, bank counter, non-bank payment institutions, etc.
This year, the tax authorities put forward the principle of “no penalty for first violation”, that is, if the taxpayer overreturns or underpays the annual tax due to the error of filling in the declaration information, and the taxpayer corrects in time on his own initiative or after being reminded by the tax authorities, the tax authorities can be exempted from punishment according to the principle of “no penalty for first violation”.
According to the tips of the personal income tax APP, taxpayers can prepare income information, special additional deduction information and bank card information in advance.
Income information can be obtained through the “Income Tax Details Inquiry” service of the individual income tax APP, and special additional deduction information can also be obtained through the individual income tax APP. The bank card information is required to be a qualified bank account opened by the taxpayer in China.
For some taxpayers who still do not know their annual consolidated income or are difficult to calculate, tax authorities provide taxpayers with pre-filling service before the annual final settlement. If the taxpayer has no objection to the pre-filling result, the system will automatically calculate the tax payable or refundable.
Taxpayers also need to pay attention to that, for the pre-tax deduction items occurring in 2020, but have not yet declared the deduction or the full amount of deduction, they can still handle the deduction or supplementary deduction in the annual final settlement period.
These pretax deductions include, in particular, major medical expenses for which taxpayers, their spouses and minor children are eligible; Taxpayers’ eligible additional deductions for children’s education, continuing education, housing loan interest or housing rent, and special deductions for supporting the elderly, as well as deductions for expenses, special deductions and other deductions determined according to law; And taxpayers’ eligible donor expenditures.
Beijing News reporter Jiang Huizi
Edited by Zhang Lu, proofread by Zhao Lin