Conversion Plan Of Wages, Salaries And Service Remuneration (1)

Mr Yip earned 400 yuan from his unit in April 2000.

Because of the low unit wages, Mr. Ye provided technical services for A enterprises in the same month, and he paid a personal income tax of 320 yuan for that month's remuneration of 2400 yuan.

Compared with other people whose income is similar, Mr. Ye feels that he has paid too much tax and asks if he can pay less tax.

Mr. Yip's problems are common. Planning can reduce taxes.

With the development of economy and the improvement of wage level, more and more people's salaries and salaries have met the standard of individual income tax. Therefore, planning has certain practical significance.

Especially in the modern economy, people's income forms are diversified, which provides greater space for the planning of personal income tax.

According to China's current individual income tax law, the salary and salary income is applicable to nine to 5% advanced tax rate of 45% to nine. The income from labor remuneration is applicable to the proportional tax rate of 20%, and it can be added to the higher income.

According to the interpretation of the regulations on the implementation of the personal income tax law, labor remuneration is actually equivalent to the excess progressive tax rate applicable to 20%, 30% and 40%.

We can see that the tax rates applicable to the same amount of wages, salaries and remuneration for labor are different. At the same time, the excess progressive tax rate is also applied to wages, salaries and remuneration for services.

In some cases, the income from wages and salaries will be separated from the remuneration of the service, while sometimes the merger of these two incomes will save personal income tax. Therefore, it is possible to make reasonable plans for them.

To plan for wages, salaries and remuneration for remuneration for labor, we must first understand their respective meanings and their differences.

Wage and salary income refers to the remuneration paid by individuals in offices, groups, schools, military units, enterprises, institutions and other organizations, and is the income of individuals engaging in non independent labor activities. Labor remuneration refers to the remuneration paid by individuals independently from various skills and services provided.

The specific scope of income from wages, salaries and remuneration for services is defined in the regulations on the implementation of the individual income tax law.

The difference between them is that there is a stable relationship between employment and employment between the units and individuals provided by the former, and the latter does not exist.

An example is to analyze one of the cases: A will convert labor remuneration into wages and salaries. If Mr. Ye has no fixed employment relationship with the A enterprise, he should pay individual income tax according to the tax law.

Mr. Ye's salary and salary income of 400 yuan did not exceed the basic deduction limit of 800 yuan, without paying taxes.

The amount of tax payable for labor remuneration is 2400 yuan: (2400-800) x 20% = 320 (yuan).

If Mr. Ye has a fixed employment relationship with A enterprises, the 2400 yuan paid by A enterprises should be combined with the wages paid by the unit to pay personal income tax. The amount of tax payable shall be: Xun (24 000 + 4 000 to 8 million) x 10% 25 = 175 (yuan).