Today, Knowledge Planet announced: income generated after August 20, for individual users will be charged 20% commission.
For many personal we-media, this will undoubtedly increase part of the cost. If we want to maintain the original income, we have to transfer this part of the cost to the final consumers. But that’s how this tax policy should have been done all along, from a compliance perspective. No matter they will eventually raise the fee threshold or reduce the revenue ratio, most technical we-media people are supportive.
However, as I said in the figure above, in addition to the income tax withheld by Knowledge Planet or other organizations for us, there is a part of the possible additional expenses that many people do not care about, that is, starting in March next year, we need to perform the annual income tax settlement.
What is the annual settlement of individual tax
For the 2019 individual income tax reform, most people may still only be limited to a few special additional deductions, people can deduct a fixed amount of individual income tax by reporting information related to children’s education, continuing education, medical treatment for serious diseases, housing loans, housing rent and supporting the elderly.
So what is the annual tax settlement and what ghost? , here is not directly throw the content of the tax law, I hope the following vernacular explanation can help you understand:
Who will be affected?
- Two or more sources of income (multiple withholding agents)
- Income belongs to wages and salaries; Income from remuneration for personal services; Income from author’s remuneration; One of the four items of income from royalties
- The total income of the above is more than 60,000 yuan after deducting the three insurances, one housing fund and special deductions
So, if more than one company sends you money, and the money falls into the above four categories, the sum of the money is more than 60,000 yuan, will be affected. So for people who work in a company and do sideline work, do private work, write books, basically will be involved in this policy. Unless they pay you on a person-to-person basis, you’ll need to do your annual tax settlement in March 2020.
Is it a big impact?
The impact on individuals depends entirely on individual income. Existence two kinds of circumstances: one part person can execute drawback, one part person can execute fill capture. So who can get a tax refund and who need to pay it back?
Take a look at the latest progressive individual income tax table for 2019:
As a result of current tax paid in the form of withholding prepay, that is to say, if you avoid dry, the other party may, in the form of labor remuneration, according to the first 20% of the tax is withheld for you in advance, so in the second year in March the tax payable or refundable amount of time, need according to the personal comprehensive income to determine the specific tax rates for the whole year, and the rate is as shown in the table above.
What does that mean? It makes sense to take the most extreme example. If you hold office in a company, annual salary is 2 million, after deducting five insurances and one housing fund and special deduction, income exceeds 960,000, the excess part needs to pay individual income tax by 45%. Because you besides after holding a post in the company, still did a few projects privately or advisory service, also brought a lot of income to you, these companies all withhold individual tax and pay labor income for you with the payment of remuneration. Although the individual income is withheld at 20% for us, the individual income tax of this part of the income should be paid at 45% after the summary calculation of the annual income in the annual settlement, and 25% of the individual income tax should be paid at this time.
Therefore, for the high-income group, there is likely to be a need to pay individual tax in March next year. What about tax rebates? If you understand the above example, then it is very easy to calculate, because the labor remuneration is deducted by 20%, so you only need to find the 20% tax rate part, if your annual aggregate income is not enough, then it is too much deduction, you can apply for tax refund.
conclusion
After we step out of the society, we need to pay close attention to all kinds of social policies of the country. Especially for us programmers, many people ignore all kinds of information related to the society because of high intensity of work. For example: tax policy, social security policy and so on, because now the purchase policy is often linked with these, so you have to know. There have been several around me. When I want to buy a house and buy a new energy car, I know that the continuous payment of social security is important. And for those of us who are restless slashes, this is doubly important. Do not because of policy reasons do not understand, ultimately lead to a year of hard work at a discount.
Unofficial interpretation, if there is a misunderstanding, welcome message exchange
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