Calculation:
1, payable income tax = taxable income * applicable tax rate - quick deduction taxable income.
2, taxable income = monthly income - 5,000 yuan (starting point) - special deductions (three insurance and one gold, etc.) - special additional deductions - other deductions determined by law.
3. Income from wages and salaries is taxed at the monthly taxable income by applying the 7-tier super progressive tax rate. The rate is divided into bands according to the individual's monthly taxable income from wages and salaries, with the highest band at 45% and the lowest at 3%, ****7 bands.
Expanded Information:
The Personal Income Tax Law stipulates that the tax rate is based on the monthly income from wages and salaries. p>The scope of each individual's income under the Individual Income Tax Law:
(1) Income from wages and salaries, which refers to wages, salaries, bonuses, year-end raises, labor bonuses, allowances, subsidies, and other incomes related to one's office or employment.
(2) Income from remuneration for labor services refers to the income derived by an individual from performing labor services, including design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, translating, reviewing, painting, calligraphy, sculpture, film and television, audio-recordings, video-recordings, performances, performances, advertisements, exhibitions, technical services, referral services, brokering services, agency services, as well as other income derived from labor services. Income.
(3) Income from remuneration for manuscripts refers to the income obtained by an individual for the publication and dissemination of his/her works in the form of books, newspapers and magazines.
(4) Royalty income refers to the income obtained by an individual by providing the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises; the income obtained by providing the right to use copyrights is excluded from the income from manuscripts.
(5) Business income refers to:
1. Income derived from production and business activities of individual industrial and commercial households, and income derived from the production and business activities of sole proprietorship enterprises registered in China by investors of sole proprietorship enterprises and individual partners of partnerships;
2. Income derived from schooling, medical treatment, counseling and other paid service activities by individuals in accordance with the law;
3. Income derived from the provision of patent rights, trademark rights, copyrights, non-patented technologies and other franchises; income derived from the provision of the right to use copyrights is not included in the income from manuscripts.
3. Income derived from contracting, leasing, subcontracting or subletting by individuals to enterprises and institutions;
4. Income derived by individuals from other production and business activities.
(6) Interest, dividend and bonus income, refers to the interest, dividend and bonus income obtained by an individual who owns debt, equity and so on.
(7) Income from property leasing refers to the income obtained by an individual from the leasing of real estate, machinery and equipment, vehicles and vessels, and other property.
(h) Income from property transfer refers to the income derived from the transfer of securities, equity, shares in partnerships, real estate, machinery and equipment, vehicles and vessels, and other property.
(ix) Incidental income refers to income from winning prizes, jackpots, lotteries and other incidental income.
If it is difficult to define the items of taxable income obtained by an individual, the competent tax authorities under the State Council shall determine them.
Secretariat of State Administration of Taxation - Individual Income Tax Law of the People's Republic of China*** and the State