Those who should pay taxes before June 30, but do not handle the final settlement, will be fined, and may also affect personal credit reporting.
Taxpayers who fail to complete the annual final settlement of individual income tax on time need to bear an additional late fee of 5/10,000 per day.
Individual income tax final settlement
Must be completed by June 30th!
According to the new announcement issued by the State Administration of Taxation on the 2023 annual individual income tax final settlement, the time for the 2023 annual individual income tax final settlement is from March 1 to June 30, 2024.
Original Policy:
https://fgk.chinatax.gov.cn/zcfgk/c100012/c5221099/content.html
Maybe many friends don't take the final settlement seriously, and feel that they can't refund much money even if they go through it, so they simply don't handle it.
Note that it is illegal to do so, no, Tianjin Municipality and Hangzhou City, Zhejiang Province have exposed two cases of failure to handle the final settlement and payment of individual income tax in accordance with the law.
1. Tianjin Municipal Taxation Bureau: Failure to handle the final settlement and a fine of 250,000 yuan
When the Tianjin Municipal Tax Department carried out a post-event spot check on the handling of the final settlement of individual income tax, it was found that Song, an employee of an architectural design company in Tianjin, had not handled the final settlement of individual income tax in 2019, 2020 and 2021, so it filed a case for inspection in accordance with the law.
Original Policy:
http://tianjin.chinatax.gov.cn/11200000000/0200/020001/20220916170125986.shtml
After investigation, the taxpayer Song failed to handle the final settlement of individual income tax for 2019, 2020 and 2021 within the statutory time limit, and underpaid individual income tax.
After being reminded and urged by the tax department, Song refused to declare.
After the tax department filed a case and inspected him, Song declared that he had paid back taxes, and the Inspection Bureau of the Tianjin Municipal Taxation Bureau pursued Song Lingtao's taxes, imposed late fees and imposed fines totaling 251,926.54 yuan.
2. Hangzhou Taxation Bureau of Zhejiang Province: Supplementary payment and fine of 260,000 yuan
When the taxation department of Hangzhou City, Zhejiang Province, carried out a post-event spot check on the handling of the final settlement of individual income tax comprehensive income, it was found that Wang, an executive of a construction company in Hangzhou, had not handled the final settlement of individual income tax comprehensive income in 2019, 2020 and 2021, so he filed a case for inspection in accordance with the law.
Original Policy:
http://zhejiang.chinatax.gov.cn/art/2022/9/16/art_17746_563107.html
After investigation, taxpayer Wang failed to handle the final settlement of individual income tax comprehensive income in 2019, 2020 and 2021 within the statutory time limit, and underpaid individual income tax. After being reminded and urged by the tax department, Wang Haiqiang refused to declare.
After the tax department filed a case for inspection, the Second Inspection Bureau of the Hangzhou Municipal Taxation Bureau pursued Wang's taxes, imposed late fees and imposed fines totaling 264,287.49 yuan.
Moreover, according to the relevant provisions of the Law of the People's Republic of China on the Administration of Tax Collection:
1. Regardless of whether it is a taxpayer or a withholding agent, if the taxpayer fails to pay the tax within the prescribed time limit, the tax authorities shall impose a late payment penalty of 5/10,000 of the overdue tax on a daily basis from the date of the overdue tax payment.
2. If a taxpayer or withholding agent fails to submit the required tax-related information to the tax authorities on time, the tax authorities shall order the taxpayer to make corrections within a time limit and may impose a fine of not more than RMB 2,000; where the circumstances are serious, a fine of between 2,000 and 10,000 RMB may be given.
In addition, the "Notice on Strengthening the Establishment of Individual Income Tax Credit" also points out that it is necessary to establish a mechanism for identifying the untrustworthy behavior of natural persons, and for those whose circumstances are serious and meet the standards for major tax violations and untrustworthiness cases, the tax department will list them as seriously untrustworthy parties, publicize them in accordance with the law, and share them with the national credit information sharing platform.
Therefore, everyone should pay attention to the final settlement and payment in accordance with the regulations.
Who needs to go through the final settlement?
1. Taxpayers who meet any of the following circumstances shall apply for annual reconciliation:
1. The amount of tax prepaid is greater than the amount of tax payable in the annual final settlement and the tax refund is requested;
2. The comprehensive income obtained in the tax year exceeds 120,000 yuan and the amount of tax required exceeds 400 yuan.
If the taxpayer underdeclares or fails to declare the comprehensive income in the tax year due to the error of the applicable income items or the withholding agent's failure to perform the withholding obligation in accordance with the law, the taxpayer shall handle the annual reconciliation according to the law.
2. Who is not required to apply for it?
If a taxpayer has prepaid individual income tax in accordance with the law during the tax year and meets one of the following circumstances, it is not required to apply for annual reconciliation:
1. The annual final settlement is subject to tax but the comprehensive income does not exceed 120,000 yuan for the whole year;
2. The amount of tax to be paid in the annual final settlement does not exceed 400 yuan;
3. The amount of prepaid tax is consistent with the amount of tax payable in the annual final settlement;
4. Those who meet the conditions for tax refund in annual reconciliation but do not apply for tax refund.
After the tax remittance is completed, these materials should be retained!
According to the current policy:
If a taxpayer needs to modify his or her relevant basic information and add deductions or tax incentives to the taxpayers who handle the final settlement, they should also fill in the relevant information together with the regulations. Taxpayers need to check carefully to ensure that the information filled in is true, accurate and complete.
Taxpayers and agencies shall retain the relevant materials such as special additional deductions and tax preferential materials for 5 years from the date of the end of the final settlement period.
Units with equity (stock) incentives (including equity incentives for employees by domestic enterprises with the equity of overseas enterprises as the target) and cash rewards for the transformation of on-the-job scientific and technological achievements shall report and file in accordance with relevant provisions.
Therefore, the retention period of the relevant materials of the taxpayer's 2023 annual reconciliation should be from July 1, 2024 to June 30, 2029.
So, what information needs to be retained for future reference? Check it out↓
1. Special additional deductions
2. Eligible public welfare donations
When public interest social organizations and state organs accept individual donations, they shall issue donation receipts in accordance with provisions; Where individuals request donation receipts, they shall be issued.
Where government agencies, enterprises and institutions uniformly organize employees to carry out public welfare donations, taxpayers may deduct them with the donation receipts and employee details issued in summary.
If an individual handles the deduction of public welfare donations on his own or a withholding agent handles the deduction for public welfare donations for himself, he or she shall submit the "Individual Income Tax Deduction Schedule for Public Welfare and Charitable Donations" at the time of declaration.
Individuals should retain donation receipts for a period of five years.
3. Personal pensions
It is necessary to retain the taxpayer's personal pension payment voucher and other materials.
Steps:
Open the 12333 APP in the palm of your hand, enter the [Service] - [Personal Pension Payment Voucher Inquiry and Printing] interface, select the deposit year and month, and click to download the [Voucher Information].
Fourth, the application materials
Annual reconciliation and other relevant information such as the taxpayer's comprehensive income, deductions, tax paid or tax incentives.
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