From January 1, 2022, the individual year-end bonus will be incorporated into the comprehensive income to pay a tax.

　　(Reporter Lin Yan) Recently, the Beijing Municipal Finance Bureau and the Beijing Municipal Taxation Bureau of State Taxation Administration of The People’s Republic of China forwarded the Notice of the Ministry of Finance and the State Administration of Taxation on the Connection of Preferential Policies after the Revision of the Individual Income Tax Law. According to this notice, individual residents get a one-time bonus for the whole year, and those who get it before December 31, 2021 will not be incorporated into the comprehensive income of that year. However, from January 1, 2022, individual residents will receive a one-time bonus for the whole year, which will be incorporated into the comprehensive income of that year to calculate and pay personal income tax.

　　Individual annual one-time bonus

　　Will be included in the comprehensive income tax

　　According to the notice, individual residents get a one-time bonus for the whole year, which is in line with the provisions of the Notice of State Taxation Administration of The People’s Republic of China on Adjusting the Method of Calculating and Collecting Individual Income Tax for Individuals Getting a One-time Bonus for the Whole Year. Before December 31, 2021, it will not be incorporated into the comprehensive income of the current year, and the annual one-time bonus income will be divided by the amount obtained in 12 months, and the applicable tax rate and quick deduction will be determined according to the "monthly tax rate table", and the tax will be calculated separately. Individual residents can get a one-time bonus for the whole year, or they can choose to be incorporated into the comprehensive income of the current year to calculate tax payment. However, from January 1, 2022, individual residents will get a one-time bonus for the whole year and need to be incorporated into the comprehensive income of that year to calculate and pay personal income tax.

　　The person-in-charge of a central enterprise obtains the annual performance salary deferred cash income and term reward, which is in line with the provisions of the Notice of State Taxation Administration of The People’s Republic of China on the Collection of Individual Income Tax on the Annual Performance Salary Deferred Cash Income and Term Award for the Person-in-charge of a central enterprise. Before December 31, 2021, it is also the same as "individual residents get the annual one-time bonus", but the policy after January 1, 2022 will be clarified separately.

　　Compensation for termination of labor relations

　　3 times the average salary, tax separately.

　　According to the notice, individuals and employers obtain one-time compensation income (including economic compensation, living allowance and other subsidies issued by employers), and the part that is less than three times the average salary of employees in Beijing last year is exempt from personal income tax; The part exceeding 3 times the amount shall not be incorporated into the comprehensive income of the current year, and the comprehensive income tax rate table shall be applied separately for tax calculation.

　　In addition, the one-time subsidy income obtained by an individual who goes through the formalities of early retirement is also required to be shared equally according to the actual number of years between going through the formalities of early retirement and the legal retirement age. Determine the applicable tax rate and quick deduction, and apply the comprehensive income tax rate table to calculate tax separately.

　　Units sell houses to employees at low prices.

　　Separate taxation is also required.

　　It is worth noting that there is also a policy aimed at "selling houses to employees at low prices" in this notice. The notice stipulates that: if the unit sells the house to its employees at a price lower than the purchase or construction cost, the difference between the employees and the employees is in line with Article 2 of the Notice of State Taxation Administration of The People’s Republic of China of the Ministry of Finance on Personal Income Tax on Selling the House to Employees at Low Prices, it will not be incorporated into the comprehensive income of the year, and the difference income will be divided by the amount obtained in 12 months. Determine the applicable tax rate and quick deduction according to the monthly tax rate table, and calculate the tax separately.