Two Deductions of Personal Income Tax

both methods are acceptable. you can use the mobile APP to fill in the special additional deduction information and choose the reporting method. If you choose "declare through withholding agent", the company can use the withholding software to obtain the special additional deduction information you fill in, calculate the withholding tax on a monthly basis, and then file a full tax return with the tax authorities. In this way, you can enjoy the deduction during the withholding and prepayment period. If you fail to submit it in time, you can also make up the report in the next month, and the unit will make up the deduction when paying the salary in the remaining months of the current year, which will not affect your special additional deduction. If you choose to declare by yourself in the year of comprehensive income, the taxpayer will directly submit the information to the tax authorities, and the withholding unit will not be able to obtain the taxpayer's special additional deduction information. In this way, taxpayers can enjoy the deduction and apply for tax refund only when the annual settlement is made.

Legal Basis

Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China

Article 36 A taxpayer shall file a tax return with the competent tax authority in accordance with the provisions in any of the following circumstances:

(1) The annual income is more than 12, yuan;

(2) Obtaining wages and salaries from two or more places in China;

(3) income obtained from outside China;

(4) obtaining taxable income without withholding agent;

(5) Other circumstances stipulated by the State Council. Article 6 the scope of individual income stipulated in the individual income tax law:

(1) income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment or employment.

(2) Income from remuneration for labor services refers to income obtained by individuals from engaging in labor services, including design, decoration, installation, drawing, laboratory testing, testing, medical treatment, law, accounting, consulting, lecturing, translation, peer review, painting and calligraphy, sculpture, film and television, audio recording, video recording, performance, performance, advertisement, exhibition, technical service and introduction.

(3) The term "income from remuneration for writing" refers to the income obtained by individuals from the publication of their works in the form of books, newspapers and periodicals.

(4) The term "income from royalties" refers to the income obtained by individuals from providing the right to use patents, trademarks, copyrights, non-patented technologies and other franchises; The income from providing the right to use copyright does not include the income from remuneration.

(5) Operating income refers to:

1. Income obtained by individual industrial and commercial households engaged in production and business operations, and income obtained by investors of sole proprietorship enterprises and individual partners of partnership enterprises from production and business operations of sole proprietorship enterprises and partnership enterprises registered in China;

2. Income obtained by individuals from running schools, medical care, consulting and other paid service activities according to law;

3. Income obtained by individuals from contracting, leasing, subcontracting or subletting enterprises and institutions;

4. Income obtained by individuals from other production and business activities.

(6) Income from interest, dividends and bonuses refers to income from interest, dividends and bonuses obtained by individuals who own creditor's rights and stock rights.

(7) The term "income from property lease" refers to the income obtained by individuals from renting real estate, machinery and equipment, vehicles and boats and other property.

(8) The term "income from property transfer" refers to the income obtained by individuals from transferring securities, stock rights, share of property in a partnership, real estate, machinery and equipment, vehicles, boats and other property.

(9) Accidental income refers to personal income from winning prizes, winning prizes, winning lottery and other accidental properties.

if it is difficult to define taxable income items for personal income, it shall be determined by the competent tax authorities of the State Council.