State Administration of Taxation: Starting from March 1, the annual tax comprehensive income calculation will be launched

Satanship Announcement [2022] No. 1

　　In order to implement the requirements of the "Opinions on Further Deepening the Reform of Tax Collection and Management" issued by the CPC Central Committee and the State Council, effectively safeguard the legitimate rights and interests of taxpayers, and establish and improve the system of comprehensive income settlement and payment of individual income tax in a reasonable and orderly manner, in accordance with the relevant provisions of the Individual Income Tax Law and its implementation regulations, the Tax Collection and Management Law and its implementation rules, the relevant matters related to the handling of the 2021 annual individual income tax comprehensive income settlement and payment (hereinafter referred to as the annual settlement) are hereby announced as follows:

　　1. The content of the annual accounting

　　After the end of fiscal 2021, resident individuals (hereinafter referred to as "taxpayers") need to summarize the income from four items of income (hereinafter referred to as "comprehensive income") such as wages and salaries, labor remuneration, authors' remuneration, and royalties obtained from January 1, 2021 to December 31, 2021 (hereinafter referred to as the tax year), after deducting 60,000 yuan of expenses, as well as special deductions, special additional deductions, other deductions determined in accordance with law, and eligible donations to public welfare charitable undertakings. Apply the comprehensive income tax rate and subtract the quick deduction (see Annex 1 for the tax rate table), calculate the final tax payable in the annual tax, and then subtract the amount of tax prepaid in the tax year, obtain the amount of tax that should be refunded or supplemented, declare to the tax authority and handle the tax refund or supplement. The specific calculation formula is as follows:

　　The amount of tax that should be refunded or paid back = [(comprehensive income amount - 60,000 yuan - special deductions such as "three insurances and one gold" - special additional deductions such as children's education - other deductions determined according to law - eligible public welfare charitable donations) × applicable tax rate - quick deduction] - tax amount prepaid

　　The annual tax calculation does not involve classified income such as property leasing, as well as the income that the taxpayer chooses not to incorporate into the comprehensive income according to the regulations.

　　2. There is no need to handle annual accounts

　　Taxpayers who have already paid individual income tax in accordance with the law during the tax year and meet any of the following circumstances do not need to apply for annual remittance:

　　(1) Where tax reimbursement is required for annual settlement, but the comprehensive income does not exceed 120,000 yuan for the whole year;

　　(2) The amount of tax required for annual remittance does not exceed 400 yuan;

　　(3) the amount of tax already withheld is consistent with the amount of tax payable in the annual foreign exchange;

　　(4) Those who meet the conditions for annual tax rebate but do not apply for a tax refund.

　　3. Situations in which it is necessary to handle annual accounts

　　Taxpayers shall apply for annual accounting under any of the following circumstances:

　　(1) Where the amount of tax already prepaid is greater than the amount of tax payable in the annual foreign exchange and the application for a tax refund is applied for;

　　(2) The comprehensive income obtained during the tax year exceeds 120,000 yuan and the amount of tax that needs to be supplemented exceeds 400 yuan.

　　Where the application of income items is wrong or the withholding agent fails to perform the withholding obligation in accordance with law, resulting in under-declaration or failure to declare comprehensive income within the tax year, the taxpayer shall handle the annual accounting in accordance with law.

　　4. Available pre-tax deductions

　　Taxpayers may fill in the deductions or supplementary deductions during the annual settlement period for the following pre-tax deductions that occur during the tax year and have not been declared or deducted in full:

　　(1) Taxpayers, their spouses, and minor children's eligible medical expenses for serious illnesses;

　　(2) Taxpayers who meet the conditions for children's education, continuing education, housing loan interest or housing rent, and special additional deductions for supporting the elderly, as well as deductions for expenses, special deductions, and other deductions determined in accordance with law;

　　(3) Taxpayers' eligible donations to public interest charitable undertakings.

　　Taxpayers who have obtained both comprehensive income and business income may declare deductions of 60,000 yuan, special deductions, special additional deductions and other deductions determined in accordance with law in the comprehensive income or business income, but shall not repeatedly declare deductions.

　　5. Processing time

　　The annual remittance processing period is from March 1 to June 30, 2022. Taxpayers who are not domiciled in China leave China before March 1 can apply for annual accounting before leaving China.

　　6. Handling methods

　　Taxpayers can choose the following methods:

　　(1) Handle annual accounts on their own.

　　(2) Units that have been employed through employment (including units that withhold and withhold and prepay individual income tax on their labor remuneration in accordance with the cumulative withholding method, the same hereinafter). Hereinafter referred to as the unit) to handle on behalf of the unit.

　　Where a taxpayer submits a request for agency handling, the unit shall handle it on its behalf, or train or guide the taxpayer to complete the annual tax declaration and refund (supplementary) tax through the natural person electronic tax bureau (including mobile personal income tax APP and web terminal, the same below).

　　If the unit handles the matter on its behalf, the taxpayer shall confirm with the unit in writing or electronically before April 30, 2022, supplement the comprehensive income, relevant deductions, tax incentives and other information obtained outside the unit during the tax year, and be responsible for the authenticity, accuracy and completeness of the information submitted. If the taxpayer fails to confirm with the unit and asks him to handle the annual accounting on his behalf, the unit shall not handle it on his behalf.

　　(3) Entrusting tax-related professional service institutions or other units and individuals (hereinafter referred to as "trustees") to handle the matter, the taxpayer and the trustee need to sign a power of attorney.

　　After the unit or trustee handles the annual accounting for the taxpayer, it shall promptly inform the taxpayer of the handling situation. If a taxpayer discovers that there is an error in the information on the annual accounting declaration, he may request the unit or trustee to apply for a correction declaration, or he may apply for a correction declaration on his own.

　　7. Handling channels

　　In order to facilitate taxpayers, the tax authorities provide taxpayers with efficient and efficient online tax channels. Taxpayers can give priority to handling annual accounts through the natural person electronic tax bureau, and the tax authorities will provide taxpayers with pre-filling services for return items; if it is not convenient to handle them through the above methods, they can also handle it by mail or at the tax service department.

　　If the declaration is made by mail, the taxpayer shall send the declaration form to the address announced by the tax bureau of the province, autonomous region, municipality directly under the Central Government and the municipality separately listed in the plan where the competent tax authority is located as determined in accordance with Article 9 of this Announcement.

　　8. Retention of declaration information and materials

　　Taxpayers who handle annual remittance shall apply the individual income tax annual self-tax return (Annexes 2 and 3), and if they need to modify their relevant basic information and add deductions or tax benefits, they should also fill in the relevant information in accordance with the regulations. Taxpayers are required to check carefully to ensure that the information filled in is true, accurate and complete.

　　Taxpayers and units handling annual accounts on their behalf are required to retain the relevant materials of annual accounts such as special additional deductions and tax preferential materials for 5 years from the date of the end of the annual accounting period.

　　9. The tax authority that accepts the annual declaration of exchange

　　In accordance with the principle of convenience and proximity, if the taxpayer handles the annual accounting on his own or the trustee handles the annual accounting on behalf of the taxpayer, he shall make a declaration to the competent tax authority of the employer where the taxpayer is employed; if there are two or more employed units, he may choose to declare to one of them.

　　Where a taxpayer does not serve in an employed unit, he shall report to the competent tax authority at the place of his household registration, habitual residence or main source of income. The main source of income refers to the location of the withholding agent with the largest amount of labor remuneration, remuneration and royalties paid to taxpayers in a tax year.

　　Where the unit handles the annual settlement on behalf of the taxpayer, it shall report to the competent tax authority of the unit.

　　In order to facilitate tax payment services and collection management, after the end of the annual settlement period, the tax department will determine the competent tax authority for taxpayers who have not yet applied for declaration.

　　10. Tax rebate and tax reimbursement for annual settlement

　　(1) Handle tax refunds

　　Taxpayers applying for annual tax refunds shall provide eligible bank accounts opened in China. After reviewing and approving in accordance with the regulations, the tax authorities shall, in accordance with the relevant provisions of the Treasury Management, handle the tax refund on the spot at the location of the tax authority that accepts the annual tax declaration (i.e., the place of annual settlement) determined in accordance with Article 9 of this Announcement. If the taxpayer does not provide his or her valid bank account, or the information provided is wrong, the tax authority will notify the taxpayer to correct it, and the taxpayer will apply for a tax refund according to law after correcting it according to the requirements.

　　In order to facilitate the handling of tax refunds, taxpayers whose annual income with comprehensive income does not exceed 60,000 yuan and have prepaid individual income tax can choose to use the simple declaration function provided by the electronic tax bureau of natural persons to facilitate the annual tax refund.

　　Taxpayers who apply for a 2021 annual tax refund, if there is a tax refund that should be processed for 2020 and previous years but have not done so, or if there are doubts in the 2020 and previous annual tax declarations after the tax authorities have notified them of doubts in the 2020 and previous years' tax declarations, they need to apply for a tax refund in accordance with the law after handling the 2020 and previous year's tax declarations, correcting the declarations or explaining the relevant circumstances.

　　(2) Handle tax reimbursement

　　Taxpayers who apply for annual tax reimbursement can pay through online banking, POS machine card of the Tax Service Department, bank counter, non-bank payment institutions, etc. Where the declaration is made by mail and the tax is made up, the taxpayer shall pay attention to the progress of the declaration and pay the tax in a timely manner through the natural person electronic tax bureau or the tax service department of the competent tax authority.

　　If a taxpayer who needs to make up taxes for annual remittances fails to pay the full amount of tax after the end of the annual settlement period, the tax authorities will impose a late fee in accordance with the law and mark it in their "Individual Income Tax Payment Records".

　　If a taxpayer overfeed or underpays the tax in the annual account due to an error in filling in the declaration information, and the taxpayer takes the initiative or promptly corrects it after being reminded by the tax authority, the tax authority may exempt the taxpayer from punishment in accordance with the principle of "no penalty for the first violation".

　　11. Annual accounting services

　　The tax authorities have launched a series of optimized service measures, strengthened the policy interpretation and operation guidance of the annual tax settlement, compiled tax guidelines by classification, explained the policy caliber, professional terms and operating procedures in a popular way, carried out prompt and reminder services through multiple channels and forms, and provided tax-related consultation through channels such as the mobile personal income tax APP, the web terminal, and the 12366 tax payment service platform to help taxpayers solve difficult problems in handling annual accounts and actively respond to taxpayers' demands.

　　Before the start of the annual tax, taxpayers can log in to the mobile personal income tax APP to view their comprehensive income and tax payment, check the basic information such as bank cards and special additional deductions involving personnel identity information, and prepare for the annual tax.

　　In order to reasonably and orderly guide taxpayers to handle annual accounts and enhance taxpayers' experience in handling, the competent tax authority will notify taxpayers in batches and installments to remind taxpayers to handle them within a certain period of time. At the same time, the tax department has launched an appointment processing service, and taxpayers who have the needs of the annual accounting period (March 1 to March 15) can log in to the mobile personal income tax APP after February 16 to make an appointment on any day of the above time period according to their own situation. From March 16 to June 30, taxpayers do not need to make an appointment and can apply for annual tax calculation at any time.

　　For special groups of people who have difficulties in completing the annual accounting independently, such as the elderly and the people with limited mobility, the taxpayer shall apply for it, and the tax authorities may provide personalized annual accounting services.

　　12. Other matters

　　If Articles 1 and 4 of the Announcement of the State Administration of Taxation on Issues Related to Individual Income Tax Self-declaration (No. 62 [2018]) are inconsistent with this Announcement, this Announcement shall be implemented in accordance with this Announcement.

　　This is hereby announced.

State Administration of Taxation

February 8, 2022

Screenshot of the website

Source: State Administration of Taxation website

Disclaimer: This article is reproduced for the purpose of transmitting more information and facilitating the popularization of law. If there is a source labeling error or infringement of your legitimate rights and interests, please contact qinghai pufa with the ownership certificate of the author, we will correct and delete it in time, thank you.