Salary and individual income tax planning scheme
（1） Reasonably allocate the proportion of "salary" and "year-end bonus"
Case: A senior executive in a certain company's salary package: monthly salary of 30000 yuan, 13 yuan salary, annual salary of 390000 yuan, three insurances and one fund of 2223 yuan per month, special additional deduction of 3000 yuan, and calculation of executive personal income tax.
Option 1:
Monthly salary: 30000 yuan, year-end bonus: 30000 yuan
Annual salary=30000 * 12+30000=390000 yuan
Salary and individual income tax=(30000 * 12-2223 * 12-3000 * 12-60000) * 20% -16920=30544 80 yuan
Option 2:
Monthly salary: 20500 yuan, year-end bonus: 144000 yuan
Annual salary=20500 * 12+144000=390000 yuan
Salary and individual income tax=(20500 * 12-2223 * 12-3000 * 12-60000) * 10% -2520=9812 40 yuan
Year end bonus individual income tax=144000 * 10% -210=14190 yuan
Annual individual income tax total=9812 40+14190=24002. 40 yuan
Option Three:
Monthly salary: 20000 yuan, year-end bonus: 150000 yuan
Annual salary=20000 * 12+150000=390000 yuan
Salary and individual income tax=(20000 * 12-2223 * 12-3000 * 12-60000) * 10% -2520=9212 40 yuan
Year end bonus individual income tax=150000 * 20% -1410=28590 yuan
Annual individual income tax total=921 40+28590=37802. 40 yuan
Option 2&Option 1: Tax saving amount=31444 80-24002. 40=7442.40 yuan
Plan 2&Plan 3: Tax saving amount=37802 40-24002. 40=13800 yuan
Best option: Option 2
（2） Clever use of housing provident fund
Individual taxable income=monthly income -5000- special deduction - special additional deduction - other deductions
Special deductions include: three insurances and one fund (pension insurance, medical insurance, unemployment insurance, housing provident fund)
（3） Welfare expenses
1. Case: Xiaoming is a single migrant worker from Beijing (not an only child). Recently, he went to a company to interview for an engineer position. After the initial and final interviews, the company decided to hire Xiaoming. The company's human resources department provided two salary plans for Xiaoming to choose from:
Plan One
Monthly salary: 20000 yuan/month, three insurances and one fund: 4443 yuan
Additional fee: 2500 yuan (rental fee of 1500 yuan+elderly support fee of 1000 yuan)
Annual taxable income=20000 * 12-4443 * 12-2500 * 12-60000=96684 yuan
Annual individual income tax=96684 * 10% -2520-7148 40 yuan
Monthly basic living cost: 4720 yuan
Rental housing: 3000 yuan/month
Meal expenses: 1500 yuan per month
Car fare: 220 yuan/month
Xiaoming's annual net income is 20000 * 12-4443 * 12-7148 4-4720 * 12=122895.60 yuan
Option 2
Monthly salary: 16000 yuan/month+includes accommodation, meals, three insurances, and one fund: 3555 yuan
Additional fee: 1000 yuan (for supporting the elderly)
Annual taxable income=16000 * 12-3555 * 12-1000 * 12-60000=77340 yuan
Annual individual income tax=77340 * 10% -2520=5214 yuan
Monthly basic living cost: 0 yuan
Xiaoming's annual net income=16000 * 12-3555 * 12-5214=144126 yuan
2. Cash or non cash payment of personal welfare expenses to employees
Cash: transportation expenses, communication expenses, cooling expenses, meal expenses
Non cash: mooncakes, Zongzi, shopping vouchers
（4） Resignation compensation
According to document Caishui [2018] No. 164, individuals who receive one-time compensation income within three times the average salary of local employees in the previous year are exempt from personal income tax; The portion exceeding three times the amount shall not be included in the current year's comprehensive income, and shall be subject to the comprehensive income tax rate table separately for tax calculation.
Resignation compensation individual income tax=one-time compensation exceeding three times the amount x applicable tax rate - quick deduction amount
（5） Reasonably utilize the "tax-free" preferential policy
1. Deduction of six additional personal income tax fees
In December 2018, the State Council issued the Interim Measures for Special Additional Deduction of Personal Income Tax, which came into effect on January 1, 2019. Six additional fees can be allowed to be deducted before tax. Maximized the reduction of the personal income tax burden on "wages and salaries".
2. Items exempt from personal income tax
(1) Prizes in science, education, technology, culture, health, sports, environmental protection and other fields issued by provincial people's governments, ministries and commissions of the State Council, units at or above the PLA, foreign organizations and international organizations;
(2) Interest on treasury bond and financial bonds issued by the state;
(3) Subsidies and allowances issued in accordance with national unified regulations; Such as government special allowances and academician allowances;
(4) Welfare expenses, pensions, and relief funds; Welfare expenses refer to living allowances paid to individuals from welfare expenses or union funds reserved by enterprises, institutions, state organs, and social organizations in accordance with relevant national regulations;
(5) Insurance claims;
(6) Transfer and demobilization fees for military personnel;
(7) According to national unified regulations, settling in allowance, severance pay, retirement salary, retirement allowance, and retirement living allowance shall be issued to cadres and employees;
(8) Embassies of various countries in China that are exempt from taxes according to relevant laws and regulations of our country;
The income of diplomatic representatives, consular officers, and other personnel of the consulate;
(9) Income exempted from taxation as stipulated in international conventions and agreements signed by the Chinese government;
(10) Income approved for tax exemption by the financial department of the State Council.
3. Allowances and subsidies exempt from personal income tax
(1) Subsidy for only child;
(2) Childcare subsidy fee;
(3) Travel allowance and meal allowance.
Meal allowance refers to the meal allowance received according to the regulations of the Ministry of Finance for individuals who are unable to dine at their workplace or return due to working in urban or suburban areas, based on the actual number of missed meals and in accordance with the prescribed standards.
