Personal Income Tax Planning: Reasonable Allocation Of Wage Income And Other Income

Individual tax is a tax on personal income, with a fair principle. The state levies high taxes for high-income earners and low taxes for low income earners.

But from a personal point of view, less tax is king.

From a small point of view, the key to individual tax planning is to adjust the structure of personal income, and rationally allocate wage income and other income, which can bring a good tax saving effect.

1, "wage income" into "

"

With the improvement of living standards, the automobile has become the standard of every family. The cost of car maintenance is more essential. For the high-income class, the rental of cars to the company can pform wage income into rental income and achieve the effect of lowering the personal tax burden.

Specific operation: employees sign a rental agreement with the company, rent their own car to the company, pay the rent to the employees on a monthly basis. At the same time, they can also stipulate in the agreement that the non fixed expenses related to the vehicle (such as gasoline, bridge toll and parking fee) will be borne by the company.

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The cost of value-added tax and surcharge is about 3.36%, the cost of personal income tax is below 16%, and the overall planning cost is below 19.36%.

Planning effect:

1) the planning cost is less than 19.36%. For employees whose wages and salaries are higher than 20%, the tax saving effect is between 0.64%-25.64%. The higher the income is, the more obvious the effect of tax saving is.

2) the non fixed cost of the vehicle is borne by the company, which is equivalent to using the pre tax income of the employee to pay the cost of the vehicle.

Be careful:

1) rental of car rental must be set at the market price.

2) employees need to carry the rental agreement and identity card to the tax bureau to invoke the invoice.

3) the fixed cost of the vehicle (such as insurance, travel tax, depreciation, etc.) can not be borne by the company; 4) the invoice must be obtained when the vehicle expense is reimbursed by the company.

(basis: Tax and tax [2016]36, personal income tax law sixth)

2, "

"Converted to" housing rent income "

Housing is a necessary place for employees to survive. The cost for housing is a necessary expenditure. The use of pre tax income to pay for this part of the necessary expenditure can achieve a good tax saving effect.

Specific operations:

1) if the employee owns his own property, he can sign a housing lease agreement with the company to rent the house to the company.

The company pays rent to employees on a monthly basis, and at the same time, it is agreed that the monthly utilities, property management fees and other fixed expenses shall be borne by the company.

2) if the housing that the employee lives in is rented, he can sign a sublease agreement with the company, and the company shall bear the fixed cost of the house's rent, water and electricity charges, and property management fees.

Planning cost: individual rental housing and sublet housing only need to pay taxes according to the comprehensive levy rate, and the tax rate and cost are between 1%-8%.

The effect of planning: the comprehensive levy rate of individual rental housing is far lower than the progressive tax rate of "wages and salaries". The rental income instead of wage income has obvious effect of tax saving. At the same time, the company takes on the fixed cost of water and electricity and property management fees of the housing, which is equivalent to using the pre tax income of the workers to pay the necessary cost.

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