Individual income tax APP update: 5 new items of personal income such as business income are displayed, and experts say that the summary of all income can facilitate taxpayers to inquire, check and declare individual income tax.
Recently, the update of the individual income tax APP has attracted widespread attention from the society.
The individual income tax APP is a mobile application of the official tax management and individual income tax declaration system launched by the State Administration of Taxation. The reporter of "Daily Economic News" noticed that compared with before, the current application in the "income tax details", newly displayed 5 personal income, namely business income, interest, dividends, bonus income, property lease income, property transfer income and accidental income.
The customer service staff of the tax service hotline 12366 said that the individual income tax final settlement refers to the annual final settlement of individual income tax comprehensive income, that is, the first four personal income mentioned in the individual income tax law.
The reporter of "Daily Economic News" noticed that previously, the "income tax details" of the individual income tax APP only showed comprehensive income such as wages and salaries, labor remuneration, author's remuneration, and royalties. After the update, the 9 items of personal income that should be subject to individual income tax can be queried and displayed on the individual income tax APP.
The individual income tax APP has added 5 items such as business income
The newly added items are mainly related to income generated from business activities or property ownership
At present, which personal income should be subject to individual income tax? According to the Individual Income Tax Law of the People's Republic of China, the following personal income shall be subject to individual income tax: 1. Income from wages and salaries; 2. Income from remuneration for labor services; 3. Income from author's remuneration; 4. Income from royalties; 5. Business income; 6. Income from interest, dividends and bonuses; 7. Income from property lease; 8. Income from the transfer of property; 9. Incidental gains.
Zhong Liuyi, an expert from Kangde Think Tank and a lawyer at Shanghai Zhiyuan Law Firm, said in an interview with the WeChat reporter of the "Daily Economic News" that the five new tax items are mainly based on the income generated by individuals engaged in business activities or property ownership, while the original four comprehensive income items are mainly related to personal labor income. The first four comprehensive incomes are calculated as individual income tax on a consolidated basis by tax year, while the last five incomes are calculated separately.
The reporter noted that according to the relevant definition of the National Bureau of Statistics, residents' disposable income, according to the source of income, disposable income includes four items, namely wage income, net operating income, net property income and net transfer income.
Zhong Liuyi said that operating income is part of the net operating income, while property lease income, property transfer income and interest, dividends, bonus income, etc. are net property income. According to the provisions of the Individual Income Tax Law of the People's Republic of China, these five items of income are taxed according to different tax rates and calculation methods. For example, a five-tier progressive tax rate is applied to business income, while a 20% tax rate is applied to income from property lease and property transfer.
According to the Individual Income Tax Law of the People's Republic of China, an excess progressive tax rate of 3% to 45% is applicable to comprehensive income; For business income, an excess progressive tax rate of 5% to 35% is applicable; Income from interest, dividends and bonuses, income from property leases, income from property transfer and incidental income shall be subject to a proportional tax rate of 20%.
As for whether individual investors need to pay tax on their stock investment income, Zhong Liuyi said that at present, dividends and bonus income in stock investment income need to be taxed, but individual income tax is not levied on stock bid-ask spread gains (i.e., capital gains) for the time being.
It is conducive to providing more comprehensive and convenient tax services
Annual reconciliation refers to the process in which the taxpayer summarizes the annual income of the four comprehensive incomes, including wages and salaries, remuneration for labor services, author's remuneration and royalties, subtracts the expenses and deductions for the whole year, and calculates the individual income tax payable for the whole year according to the annual tax rate table of comprehensive income, and then subtracts the tax that has been prepaid in the year, and handles the annual tax declaration with the tax authorities and settles the tax refundable or paid. Generally speaking, as long as the amount of tax prepaid by the taxpayer is inconsistent with the annual tax payable, the taxpayer needs to go through the annual tax settlement.
The reporter noted that from January 1, 2019, the newly revised individual income tax law was officially implemented, and one of the changes was the implementation of a comprehensive and classified individual income tax system, that is, wages and salaries, labor remuneration, author's remuneration and royalties 4 labor income items are included in the scope of comprehensive income taxation, and the comprehensive income of resident individuals is calculated and levied on an annual basis and the annual reconciliation of comprehensive income is implemented, and other income is still taxed by classification.
Jiao Ruijin, former deputy secretary-general of the Academic Committee of the China Taxation Society and a distinguished researcher of the Institute of Tax Education of the Central University of Finance and Economics, said in an interview with the WeChat of the "Daily Economic News" reporter that the business income and other items were not included before because they did not need to be comprehensively calculated, but if they are not included, there may be omissions and leaks, and they should be included from the perspective of strengthening management. It is also necessary to include it from the point of view of the unified collection of income and the convenience of intelligent tax calculation in the future.
In addition, the following items are business income, investment income and property transfer income, and the applicable income tax rate is different from the previous comprehensive income, so it should be listed separately.
Zhong Liuyi said that the update of the APP is to better meet the needs of taxpayers and provide more comprehensive and convenient tax services. Summarizing all income into the individual income tax APP is conducive to making it easier for taxpayers to inquire, check and declare individual income tax. After the update, taxpayers can more easily understand their income and tax status, and also simplify the declaration process and improve the efficiency of tax processing. In addition, it is also conducive to improving taxpayers' compliance with tax laws and promoting tax fairness and efficiency.
Zhong Liuyi said that when the actual tax payable of taxpayers is greater than the amount of prepaid tax in the annual final settlement, they need to make up the tax. This usually happens when the taxpayer has multiple sources of income or has a high income; When the actual tax payable of the taxpayer is less than the amount of tax prepaid, the taxpayer can apply for a tax refund. This usually happens when the taxpayer has a low income or is entitled to certain tax incentives.
When making the annual final settlement, taxpayers should pay attention to accurately calculating their income and expenditure to ensure the accuracy and completeness of the declaration; Pay attention to the notices and policy changes of the tax department in a timely manner, and understand the latest tax policies and regulations; If you have any questions or need help, you can contact the tax department or consult a tax professional.
National Business Daily