The final settlement of personal income tax refers to the procedure of reporting and paying personal income tax to the tax authorities on a monthly or quarterly basis according to the provisions of the local tax authorities. Personal income tax refers to the taxes that should be collected by taxpayers and uniformly stipulated by the tax authorities, and the tax amount and collection period are stipulated by the tax authorities.
The situations to be solved include:
1. Obtaining comprehensive income from two or more places, and the balance of the annual income of comprehensive income after deducting special additional deductions exceeds 60,000 yuan, as well as other circumstances stipulated by laws;
2. One or more items of income from remuneration for labor services, royalties, and annual comprehensive income after deducting special deductions exceeding 60,000 yuan;
3. The prepayment tax in the tax year is lower than the taxable amount;
4. Taxpayers apply for tax refund.
Taxpayers can choose the following ways to make annual final settlement of individual income tax:
1, through annual settlement;
2, through the employment unit. If the taxpayer asks to do it on his behalf, the unit will handle it on his behalf, or train and coach the taxpayer to complete the annual final settlement and tax refund (compensation) through the online tax bureau (including mobile APP);
3. Entrust tax-related professional service institutions or other units and individuals to handle it. The trustee shall sign a power of attorney with the taxpayer.
To sum up, the final settlement of individual income tax refers to the "comprehensive income" obtained by individuals in a tax year, including wages and salaries, labor remuneration, royalties, etc. After the merger, the final personal income tax payable for the whole year shall be calculated on an annual basis. After deducting the tax paid in advance in the tax year, the tax amount to be refunded or levied shall be calculated, and the tax authorities shall declare and pay taxes.
Legal basis:
Article 11 of the Individual Income Tax Law of People's Republic of China (PRC)
When individual residents obtain comprehensive income, they shall pay individual income tax on an annual basis; If there is a withholding agent, the withholding agent shall withhold the advance tax on a monthly basis or every time; If settlement is needed, it shall be settled within March 1 day to June 30th of the following year. The withholding measures shall be formulated by the competent tax authorities of the State Council. Where individual residents provide withholding agents with special additional deduction information, the withholding agent shall deduct the withheld tax in accordance with the provisions when withholding monthly, and shall not refuse. If a non-resident individual who has obtained wages, salaries, remuneration for labor services, remuneration for literary works and royalties has a withholding agent, the withholding agent shall withhold and pay taxes on a monthly basis or every time, without making final settlement.